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B-150296, MAR. 14, 1963

B-150296 Mar 14, 1963
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TO THE SECRETARY OF THE ARMY: WE HAVE A LETTER OF JANUARY 28. WHEN DISPOSING OF OLD EQUIPMENT AT THE SAME TIME NEW EQUIPMENT IS PURCHASED UNDER COMPETITIVE BIDDING. IT IS REQUESTED THAT ACTION BE TAKEN TO INSURE THAT THE FOREGOING PRINCIPLE IS FOLLOWED IN THE DISPOSITION OF PERSONAL PROPERTY AND THE ACQUISITION OF REPLACEMENT ITEMS.

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B-150296, MAR. 14, 1963

TO THE SECRETARY OF THE ARMY:

WE HAVE A LETTER OF JANUARY 28, 1963, WITH ENCLOSURES, SIGNED BY THE DEPUTY ASSISTANT SECRETARY OF THE ARMY (I AND L) (LOGISTICS), REPLYING TO OUR REQUEST DATED NOVEMBER 21, 1962, FOR A REPORT ON PRACTICES OF U.S. ARMY ORDNANCE PLANTS AND ARSENALS IN DISPOSING OF OLD MACHINERY WHEN PURCHASING REPLACEMENT ITEMS.

IT HAS BEEN THE CONSISTENT POSITION OF THIS OFFICE, ESTABLISHED WELL BEFORE THE ENACTMENT OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT, THAT, IN ORDER TO PROTECT THE BEST INTERESTS OF THE GOVERNMENT, AN AGENCY, WHEN DISPOSING OF OLD EQUIPMENT AT THE SAME TIME NEW EQUIPMENT IS PURCHASED UNDER COMPETITIVE BIDDING, MUST SOLICIT BOTH EXCHANGE AND CASH BIDS, AND MUST MAKE AWARD ON THE BASIS OF THE LOWEST NET COST TO THE GOVERNMENT REGARDLESS OF THE EFFECT ON A PARTICULAR APPROPRIATION OR FUND. 21 COMP. GEN. 316; 21 COMP. GEN. 294; 18 COMP. GEN. 227. IT IS REQUESTED THAT ACTION BE TAKEN TO INSURE THAT THE FOREGOING PRINCIPLE IS FOLLOWED IN THE DISPOSITION OF PERSONAL PROPERTY AND THE ACQUISITION OF REPLACEMENT ITEMS.

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