Edmund J. Rappoli Co. v. United States

98 Ct. Cl. 499, 1943 U.S. Ct. Cl. LEXIS 101, 1943 WL 4248
CourtUnited States Court of Claims
DecidedMarch 1, 1943
DocketNo. 44475
StatusPublished
Cited by13 cases

This text of 98 Ct. Cl. 499 (Edmund J. Rappoli Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edmund J. Rappoli Co. v. United States, 98 Ct. Cl. 499, 1943 U.S. Ct. Cl. LEXIS 101, 1943 WL 4248 (cc 1943).

Opinion

Madden, Judge,

delivered the opinion of the court ;■

Plaintiff was a bidder for the construction of an armory for the Government at West Point. It had sent in its formal sealed bid before the day-the bids were to be opened, intending to take advantage of the privilege offered in the invitation to bid of sending telegraphic modifications in time to be received before the hour set for opening the bids, which was 11 a. m. on March 16,1937.

[513]*513In addition to the bid on the principal project, on which plaintiff’s first figure was $620,000, plaintiff made a first bid of $14,000 on an alternate, given in the invitation, for concrete caissons instead of spread concrete footings for the foundation of the armory. Plaintiff intended to subcontract the caisson work, if it obtained the contract, and intended to use the offers of subcontractors as the basis of its telegraphic modification of this alternate. It, therefore, made no careful estimate in arriving at the $14,000 figure in its bid on the caisson alternate.

It was the custom of tradesmen in specialized lines, who desired to obtain subcontracts on such projects, to learn from trade papers the time of opening of bids, and to submit, without invitation, offers to contractors for the subcontracts. They withheld these offers until the last mail so as to reflect in them the latest available prices.

Plaintiff had also bid on another project of another owner of which the time for opening bids was 10 a. m. on the same day, March 16. Plaintiff’s morning mail usually was delivered at 8:30, and it wanted to see what offers from subcontractors were in that mail. The mail was late, because of a different carrier, and Eappoli, president of plaintiff, and others of his office staff went out and intercepted the mail man and got from him about 100 letters. Then they worked on the 10 o’clock bid. When they got to the 11 o’clock bid, here in question, they made modifications reducing the principal bid from $620,000 to some $530,000. As to the caisson alternate, there were no offers from subcontractors, so they had to figure out a final bid without the benefit of such offers.

An employee computed that there would be 1017 lineal feet of caissons, and Eappoli had in mind a figure of $30 a lineal foot for them. By an error of multiplication, or of transcribing figures, he set down as his product $10,510 instead of $30,510, the correct product. He then added to that figure the items shown in finding 7, which gave him a sum of $17,241. He rounded that to $17,000 and put into his telegram an increase of $3,000 over his earlier bid of $14,000 on the caisson alternate. The telegram was sent at [514]*514Id: 44 a. m. and arrived at West Point after 11 a. m. but while the opening of the bids was still proceeding.

•• ' Even plaintiff’s first bid- of $620,000, which it reduced by '$90,000 in its telegram, was lower than any other bid. On the caisson alternate, plaintiff’s telegraphed bid was, as we have'seen, $17,000. The other three bidders bid $48,000, -$60,000 and $65,000 respectively on this alternate. Captain •Gilman, the defendant’s constructing quartermaster at West Point was immediately aware that plaintiff’s caisson bid was, in some way, in error.

; Captain Gilman telephoned to the Department in Washington the day he opened the bids, and mailed the bids to Washington the same day. The next day, March 17, he wrote plaintiff that it was the low bidder and that its bid had been forwarded to the office of the Quartermaster General. Plaintiff received this letter on March 18, and Rap-poli, in going- over his figures, discovered the error in the figures on the caisson alternate. Pie immediately telephoned Captain Gilman, told him of the mistake and asked that ■the contract be awarded on the basis of the spread concrete ■footings, so that the caisson alternate would not be used. ■Pie asked for a conference with Gilman and - he and his lawyer,.Krohn went to West Point and had such a conference the next day, March 19. On that day, Gilman received instructions from the Quartermaster General’s office to award the contract to plaintiff. That office was, presumably, not aware of plaintiff’s claim of mistake.

At the March 19 conference Rappoli and Krohn raised the question of whether the defendant had the right to consider plaintiff’s telegraphic modification of its bid since it arrived after the hour set for opening. Gilman said that because plaintiff’s first bid was already lower than any other bid, and thus no other bidder was prejudiced, the defendant could consider plaintiff’s still lower telegraphic ■bid though it arrived late. He also said that caissons would •be used, rather than spread footings. As to the mistake .he said that the disparity in the bids made it obvious that a mistake had been made, but that proof would have to be submitted to the proper authorities. He arranged for a [515]*515conference at the Quartermaster General’s office in Washington for March 24.

The nest day, March 20, Gilman wrote Eappoli citing, as shown in finding 11, a decision of the Acting Comptroller General.to the effect that a conclusive showing of mistake must be made, to secure a correction after the opening of bids. Eappoli and his lawyer Eosenvinge went to Washington for the March 24 conference at the office of the Quartermaster General. That official was represented by Colonel Pitz, the contracting officer. Captain Gilman and other officials' of the Department were present. The two questions raised by plaintiff with Captain Gilman at West Point on March 19 were again raised. Colonel Pitz said, as to the first, that the Department had a right to consider plaintiff’s late bid because its earlier bid was lowrer than any other. As to the question of the mistake in the bid on the caisson alternate, he said the Department had no desire to take advantage of a contractor’s mistake; that the mistake j could be corrected if plaintiff would submit its proof) through proper channels.

During the conference Captain Gilman handed Eappoli an envelope containing the award of the contract on the basis of the telegraphic bids. Eosenvinge, for Eappoli, objected, because the mistake had not been corrected. Both parties were anxious to proceed with the contract without delay, in order to be safe against an expected increase in costs. Plaintiff’s representatives then agreed to accept the award, but made it plain that they expected the mistake to be corrected, and Colonel Pitz expressed no disagreement to this.

Plaintiff had its proof there at the time, and with the instruction of officials then present, a letter was addressed to Captain Gilman setting forth the circumstances of the mistake and attaching the evidence. Captain Gilman was already convinced that a mistake had been made, and Colonel Pitz indicated no doubt of that fact. • Colonel Pitz hsid in mind that the question would go to the Comptroller General, with the Department’s findings and recommendation, for decision, but he did not tell, plaintiff’s representatives' that, and they had no idea how such matters were decided, and supposed that the Department decided them itself.

[516]*516Captain Gilman transmitted plaintiff’s letter and proofs to the Department with a recommendation that consideration be given to correcting the error. The Department, by a communication to the Comptroller General which is not in evidence, recommended that the error be corrected.

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Bluebook (online)
98 Ct. Cl. 499, 1943 U.S. Ct. Cl. LEXIS 101, 1943 WL 4248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edmund-j-rappoli-co-v-united-states-cc-1943.