Industrial Builders, Inc., B-283749, December 29, 1999

B-283749 Dec 29, 1999 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Rejection of the bid was proper based upon agency's reasonable determination that the unbalancing posed an unacceptable risk that the government would make a substantial payment to the bidder upon completion of the required clearing. Without any assurance that the bidder would have constructed the cofferdam which was included in its price for that line item. The requirements were divided among 30 contract line items (CLIN) set out in the IFB's bid schedule. For each of which bidders were required to submit a lump-sum price. /1/ IFB Sec. 00010. Bidders were instructed that such work "will not be measured for payment and shall be performed on a job basis. The agency's general requirements for water control measures during contract performance were set out in the IFB's specifications. View Decision Matter of: Industrial Builders, Inc. File: B-283749 Date: December 29, 1999 DIGEST Attorneys DECISION Industrial Builders, Inc. (IBI) protests the rejection of its bid as unbalanced under invitation for bids (IFB) No. DACW37-98-B-0017, issued by the U.S. Army Corps of Engineers, St. Paul District, for the installation of a new water control structure at the outlet of a Lake Traverse flood control reservoir, located on the Minnesota/South Dakota border. We deny the protest. The IFB contemplated the award of a fixed-price contract for the removal of an existing structure, the construction of a new water control structure, and associated work. IFB Sec. 00100, Para. 22, at 00100-6. The requirements were divided among 30 contract line items (CLIN) set out in the IFB's bid schedule, for each of which bidders were required to submit a lump-sum price. /1/ IFB Sec. 00010, at 00010-3 through 00010-5. IBI's protest relates to CLIN 0004, for clearing, grubbing, and snagging work. Section 02110 of the IFB described the scope of the work required under CLIN 0004 as "clearing, grubbing, snagging; disposal of cleared, grubbed, and snagged materials; and filling of grubbing holes." IFB Sec. 02110, Para. 1.1, at 02110-2. /2/ With respect to payment for the CLIN 0004 work, bidders were instructed that such work "will not be measured for payment and shall be performed on a job basis, complete." Id. Para. 1.5. The agency's general requirements for water control measures during contract performance were set out in the IFB's specifications, which provided that: dewatering work/operations involved in the execution of the contract project work includes primarily the drawdown of water table, but may also require temporary barriers (small cofferdams, /3/ earth diking, sheeting, or other satisfactory type of barrier) to protect against the prevailing creek/river/stream stages at outfalls. IFB Sec. 01000, Para. 1.22.1, at 01000-20. Several IFB provisions specifically referred to a need for dewatering equipment or barriers. For example, the IFB provided that the new control structure would require temporary barriers, and that dewatering operations were to be performed "so that excavation, foundation preparation, cast-in-place concrete placement, precast concrete installation, and backfilling for all structures are made in the dry." Id. Para. 1.22.3, at 01000-20. /4/ There was no provision in the IFB's dewatering specifications which specifically required dewatering measures for the clearing, grubbing, and snagging work of CLIN 0004. The IFB provided specific instructions to bidders regarding bid preparation and payment for the contractor's dewatering work. In this regard, the IFB provided the following instructions: No separate payment will be made for dewatering protection work. Compensation for performing the necessary dewatering work for various items of the contract project permanent work such as outlet lines, interceptor lines, manholes, inlets, gatewells, and closure structures shall be included in the contract items for the work to which the dewatering operations pertain. Id. Para. 1.22.7, at 01000-22 (emphasis added). Three bids were received by the scheduled bid opening on May 28, 1999. IBI submitted the apparent low total bid, $1,294,860; Swanberg Construction Company submitted the next low bid, $1,328,500; and the third bid was $1,442,580. Agency Report at 1. The government estimate, initially set at $919,815, was revised after bid opening to $1,171,145. /5/ Id. at 1-2. IBI's CLIN 0004 price, however, was significantly higher than the other bids received for that item, as follows: IBI $397,000 Swanberg $ 3,000 Bidder No. 3 $ 5,000 Government Estimate (revised) $ 1,900 The contracting officer notified IBI of his concerns regarding IBI's apparently inflated price for CLIN 0004.