B-143969, JUL. 19, 1961
Highlights
INC.: REFERENCE IS MADE TO YOUR ATTORNEYS' LETTERS OF APRIL 24 AND JUNE 21. THE CLAIM WAS DISALLOWED BY GENERAL ACCOUNTING OFFICE SETTLEMENT DATED JUNE 3. THE SETTLEMENT WAS SUSTAINED BY OUR DECISION OF MARCH 28. MANY OF THE PERTINENT FACTS WERE SET OUT IN OUR DECISION OF MARCH 28. THE FILE SHOWS THAT THE PARACHUTES INCLUDED IN LOT 98 WERE ORIGINALLY PERSONNEL PARACHUTES WHICH HAD BEEN CONVERTED TO CARGO PARACHUTES. IT IS REPORTED THAT THEY HAD NEVER BEEN USED AS CARGO PARACHUTES. WHICH MAY PARTIALLY EXPLAIN WHY THEY WERE PLACED IN NEW CONTAINERS AND LISTED AS UNUSED. THE ADMINISTRATIVE OFFICE HAS STATED THAT THE PARACHUTES INCLUDED IN LOT 98 WERE USABLE AS CARGO PARACHUTES AND WERE LARGER IN SIZE AND BETTER IN QUALITY THAN THOSE PURCHASED BY YOU UNDER LOTS 96.
B-143969, JUL. 19, 1961
TO TRANSCONTINENTAL SALES COMPANY, INC.:
REFERENCE IS MADE TO YOUR ATTORNEYS' LETTERS OF APRIL 24 AND JUNE 21, 1961, RELATIVE TO YOUR CLAIM IN THE AMOUNT OF $6,884.64 ARISING FROM YOUR PURCHASE OF PARACHUTES FROM THE DEPARTMENT OF THE NAVY UNDER CONTRACT NO. N665S-46241 DATED NOVEMBER 5, 1959. THE CLAIM WAS DISALLOWED BY GENERAL ACCOUNTING OFFICE SETTLEMENT DATED JUNE 3, 1960, AND THE SETTLEMENT WAS SUSTAINED BY OUR DECISION OF MARCH 28, 1961. YOUR ATTORNEYS REQUEST RECONSIDERATION OF THE MATTER AND ESPECIALLY REQUEST INFORMATION AS TO THE REASON FOR THE MISADVERTISING OF THE PARACHUTES.
MANY OF THE PERTINENT FACTS WERE SET OUT IN OUR DECISION OF MARCH 28, 1961, AND NEED NOT BE REPEATED HERE. THE FILE SHOWS THAT THE PARACHUTES INCLUDED IN LOT 98 WERE ORIGINALLY PERSONNEL PARACHUTES WHICH HAD BEEN CONVERTED TO CARGO PARACHUTES. IN SOME CASES THE CONVERSION HAD BEEN ACCOMPLISHED BY SEWING NEW PANELS INTO THE PARACHUTES. IT IS REPORTED THAT THEY HAD NEVER BEEN USED AS CARGO PARACHUTES, WHICH MAY PARTIALLY EXPLAIN WHY THEY WERE PLACED IN NEW CONTAINERS AND LISTED AS UNUSED. WOULD APPEAR IMPRACTICABLE TO OBTAIN MORE DETAILED INFORMATION AS TO THE HANDLING OF THE PARACHUTES WHICH RESULTED IN THE INACCURATE DESCRIPTION AS "UNUSED, GOOD.' HOWEVER, THE ADMINISTRATIVE OFFICE HAS STATED THAT THE PARACHUTES INCLUDED IN LOT 98 WERE USABLE AS CARGO PARACHUTES AND WERE LARGER IN SIZE AND BETTER IN QUALITY THAN THOSE PURCHASED BY YOU UNDER LOTS 96, 97 AND 99.
AS STATED IN OUR DECISION OF MARCH 28, 1961, THE PROVISION AS TO THE CONDITION OF THE PROPERTY QUOTED IN THE DECISION HAS BEEN HELD CONSISTENTLY BY THE ACCOUNTING OFFICERS AND THE COURTS TO CONSTITUTE AN EXPRESS DISCLAIMER OF WARRANTY. THE EFFECT OF THAT PROVISION IS TO PLACE ON THE PURCHASER THE ENTIRE RISK OF DEFECTS, EVEN IN THE ABSENCE OF ANY SPECIFIC NOTICE OF DEFECTS IN THE PROPERTY. OTHERWISE, THE GOVERNMENT WOULD BE SUBJECTED TO A FLOOD OF COMPLAINTS AND CLAIMS ARISING FROM SALES OF SURPLUS PROPERTY.
UPON RECONSIDERATION, THE ACTION HERETOFORE TAKEN ON YOUR CLAIM IS AFFIRMED, THERE APPEARING NO LEGAL BASIS FOR ALLOWANCE OF ANY PART OF THE CLAIM.