Pacific Alaska Contractors v. United States, 349-56.

• Decision Date: 15 January 1958
• Docket Number: No. 349-56.,349-56.
• Citation: 141 Ct. Cl. 303,157 F. Supp. 844
• Parties: PACIFIC ALASKA CONTRACTORS, Inc., v. UNITED STATES.
• Court: U.S. Claims Court

157 F. Supp. 844

141 Ct. Cl. 303

PACIFIC ALASKA CONTRACTORS, Inc., v. UNITED STATES.

No. 349-56.

United States Court of Claims.

January 15, 1958.

James V. Ramsdell, Tacoma, Wash., for plaintiff. O. P. Easterwood, Jr., McNutt, Dudley & Easterwood, Washington, D. C., and Eisenhower, Hunter & Ramsdell, Tacoma, Wash., were on the briefs.

Mary K. Fagan, Washington, D. C., with whom was Asst. Atty. Gen. George Cochran Doub, for defendant.

WHITAKER, Judge.

Plaintiff sues for breach of a contract it alleges it entered into with defendant to construct certain fuel storage tanks, pumphouses, fuel lines, electrical distribution system, etc., at Elmendorf Air Force Base, Anchorage, Alaska.

Defendant has filed a motion for summary judgment on the ground that no contract between the parties was consummated.

The facts are not in dispute. Defendant advertised for bids for the construction of items listed in alternate schedules A, B, C, D and E. Item 1 in each schedule was a certain number of fuel storage tanks. The number of the tanks in each schedule was different; otherwise item 1 in each schedule was the same. Item 2 was for a booster pumphouse and fuel lines; item 3 was for an electrical distribution system; and item 4 was for rerouting fuel transfer lines. The quantities in items 2 to 4 varied in proportion to the number of tanks in item 1.

The invitation for bids stated that an award would be made under only one schedule, and that items 1 through 3 would be awarded on one contract, with the right reserved to award also item 4, if the defendant so decided.

Plaintiff bid on all five schedules and was low bidder on each. Its bid was to remain open for sixty days after the opening on December 9, 1955.

Of all the work to be done at the Air Force Base, the work bid on by plaintiff was the last to be done, and the extent to which it could be done depended upon the amount of money that remained after other work had been completed. So, when it developed that bids on work having greater priority exceeded defendant's estimate, it was determined that item 1 of plaintiff's project could not then be awarded, but it was decided to award items 2, 3 and 4, reserving the right to award item 1 within the sixty-day period of plaintiff's offer, if sufficient money was on hand. Defendant, accordingly, wired plaintiff as follows:

"You are hereby notified that schedule A items 2, 3 and alternate item 4 of your bid dated 9 December 1955 in response to invitation eng-95-507-56-9 revised by addenda 1 and 2 for construction of underground jet fuel and avgas systems at Elmendorf AFB Alaska in total amount of $671,421 for completion ready for use not later than 1 August 1957 is accepted. The government reserves the right to award either item 1 of schedule A or item 1 of schedule C or item 1 of schedule E within 60 calendar days of bid date. The government further reserves the right to substitute piping for 8 tanks, item 2 of schedule E or 6 tanks, item 2 of schedule C in lieu of piping for 4 tanks, item 2 of schedule A, and to substitute item 3 of schedule C or item 3 of schedule E for item 3 of schedule A at bid price within 60 calendar days of bid date. This award further contains the proviso that no work shall commence on alternate item 4 until excavation is completed on runway and notice to proceed is issued by contracting officer for this work. Your contract will be numbered DA-95-507-ENG-886 and will be dated 30 December 1955. Copies of the contract and formal notice of award with complete instructions for executing bonds will be forwarded shortly for signature. Notice to proceed will not be given until contract is signed and satisfactory bonds have been furnished. Telegraphic acknowledgment of this notice is requested."

The award, therefore, was not responsive to plaintiff's bid. As stated, defendant had said in its invitation for bids that one contract would be awarded for items 1, 2, and 3, and possibly 4, and plaintiff had bid on all four items, with the understanding that one contract would be awarded covering at least the first three items.

Since the award did not conform to plaintiff's bid, plaintiff protested and demanded a contract covering at least the first three...