At issue is the $89 million bid submitted by the low bidder, Whiting-Turner. After bid opening, Whiting-Turner claimed that they had transposed the bid amount and really meant their bid to be $98 million, still below that of the second low bidder, McCarthy Building Cos., whose bid was just under $101 million. Whiting-Turner submitted documentation demonstrating that they intended to bid $98 million, and requested approval to change their bid to $98 million. However, airport officials will apparently be recommending against such an action given the rules of competitive bidding. Ultimately, the Board of Supervisors will make the final decision.
Look for a lawsuit by McCarthy Building Cos. if Orange County awards the contract to Whiting-Turner at the revised amount of $98 million. McCarthy would argue that Whiting-Turner had an advantage not enjoyed by other bidders - the ability to decide whether to take the job or not and at what price, often referred to as having a "second bite at the apple." Changing the bid amount is a classic case of giving a bidder an advantage, not to mention that it constitutes negotiation of the price. Behind McCarthy's protest would be the assertion that they were not similarly afforded the opportunity to modify their bid.
In theory, many companies could prove after bid opening that they made a "mistake" and that their intended price, based on their worksheets, was something different. If this practice were permitted, it could lead to bidders submitting intentionally low bids, knowing that after bid opening, they could adjust their price if necessary to still remain the low bidder, but not leave so much money on the table.
- To read some of the original letters from Whiting-Turner and other documentation, click here (17 pages).
- Click here to read the airport staff's report.
- The Orange County Register has a brief article on the latest update to this case.
Posts
No comments:
Post a Comment