B-125275, SEP. 29, 1955

B-125275, SEP. 29, 1955

TO A. G. BLANCHARD COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF JULY 29, 1955, REQUESTING REVIEW OF SETTLEMENT DATED JULY 26, 1955, WHICH DISALLOWED YOUR CLAIM FOR $81.33, REPRESENTING YOUR TOTAL BID DEPOSIT UNDER INVITATION NO. B 42-55, COVERING THE SALE OF SURPLUS PROPERTY BY THE DEPARTMENT OF THE NAVY. YOUR BID OF $56.40, ON ITEM 4, ONE MULTI-WELD PANEL, WAS ACCEPTED BY THE GOVERNMENT UNDER CONTRACT NO. N244S-46915, DATED AUGUST 13, 1954.

THE RECORD SHOWS THAT AFTER PURCHASE OF THE MATERIAL, YOU REQUESTED THAT IT BE SHIPPED TO YOU, BUT DID NOT SPECIFY ANY PARTICULAR CARRIER OR SHIPPING INSTRUCTIONS. THE NAVAL SUPPLY DEPOT SELECTED THREE LOCAL CARRIERS AT RANDOM AND NOTIFIED YOU TO SELECT ONE OF YOUR CHOOSING. AFTER CONSIDERABLE CORRESPONDENCE WITH REGARD TO THE RESPONSIBILITY FOR PACKING CHARGES, YOU REQUESTED THAT THE MATERIAL BE CONSIGNED TO A COMMON CARRIER FOR SHIPMENT. IN COMPLIANCE WITH YOUR REQUEST, THE BEKINS VAN AND STORAGE COMPANY WAS REQUESTED TO SHIP THE MATERIAL BY TRUCK TO YOU, CONSIGNED AS "ONE LOT OF SCRAP.' THE BEKINS VAN AND STORAGE COMPANY PICKED UP THE MATERIAL FROM THE DEPOT AND REQUESTED SEVERAL MOTOR FREIGHT COMPANIES TO SHIP IT TO YOU UNCRATED, AS YOU REQUESTED. AS EVIDENCED BY THE STORAGE COMPANY'S LETTER TO YOU OF NOVEMBER 15, 1954, SEVERAL MOTOR FREIGHT COMPANIES REFUSED TO HANDLE THE MATERIAL UNCRATED. IT APPEARS THAT YOU HAVE REFUSED TO ACCEPT THE MATERIAL FROM THE STORAGE COMPANY, WHERE IT REMAINS IN STORAGE.

YOU CONTEND THAT THE NAVY DEPARTMENT TOOK THE RESPONSIBILITY OF CONSIGNING THE MATERIAL TO THE STORAGE COMPANY AND THAT IT ERRED IN FOLLOWING YOUR INSTRUCTIONS AS TO CONSIGNMENT. AS A RESULT THEREOF, YOU REQUEST THAT YOU BE REFUNDED YOUR TOTAL BID DEPOSIT OF $81.33.

IN THIS CONNECTION, THE RECORD SHOWS THAT YOU HAVE BEEN REIMBURSED BY THE DEPARTMENT OF THE NAVY THE DIFFERENCE BETWEEN THE AMOUNT OF YOUR DEPOSIT AND THE PURCHASE PRICE OF ITEM 4, IN THE AMOUNT OF $24.93. THUS, THE CONTRACT CONSIDERATION HERE IS ONLY $56.40.

ALSO, YOUR ATTENTION IS INVITED TO PARAGRAPH 2, AS AMENDED, 6 AND 7, GENERAL SALE TERMS AND CONDITIONS, WHICH READ IN PERTINENT PART:

"* * * THE GOVERNMENT WILL LOAD THE MATERIAL ON PURCHASER'S TRUCK AT LOCATION OF MATERIAL AND UNDER NO CIRCUMSTANCES WILL ANY CRATING SHORING OR SHIPPING BE PERFORMED BY THE GOVERNMENT.

"6. TITLE.--- TITLE TO THE ITEMS OF PROPERTY SOLD HEREUNDER SHALL VEST IN THE PURCHASER AS AND WHEN FULL AND FINAL PAYMENT IS MADE * * *.

"7. DELIVERY AND REMOVAL OF PROPERTY.--- THE PURCHASER SHALL BE ENTITLED TO OBTAIN THE PROPERTY UPON VESTING OF TITLE OF THE PROPERTY IN HIM, UNLESS OTHERWISE SPECIFIED IN THE INVITATION TO BID. DELIVERY SHALL BE AT THE DESIGNATED LOCATION, AND THE PURCHASER SHALL REMOVE THE PROPERTY AT HIS EXPENSE. * * *"

UNDER THE TERMS OF PARAGRAPH 6 OF THE CONDITIONS OF SALE, IT WAS EXPRESSLY PROVIDED THAT TITLE TO THE PROPERTY SHALL BECOME VESTED IN THE PURCHASER "WHEN FULL AND FINAL PAYMENT" IS MADE. HENCE, UPON THE ACCEPTANCE OF YOUR BID BY THE GOVERNMENT AND DEPOSIT OF YOUR BID DEPOSIT TO YOUR ACCOUNT, TITLE TO THE PROPERTY AUTOMATICALLY BECAME VESTED IN YOU. IT IS YOUR CLEAR AND UNEQUIVOCAL DUTY UNDER THE CONTRACT TO CALL FOR AND REMOVE THE PROPERTY OF THE SALE AT YOUR EXPENSE. IT IS THE GOVERNMENT'S DUTY UNDER PARAGRAPH 2 TO LOAD THE MATERIAL ON YOUR TRUCK AT THE LOCATION OF THE MATERIAL AND UNDER NO CIRCUMSTANCES WOULD ANY CRATING, SHORING OR SHIPPING BE PERFORMED BY THE GOVERNMENT. CONTRARY TO YOUR CONTENTION, THE GOVERNMENT UNDERTOOK IN NO WAY THE RESPONSIBILITY FOR CONSIGNING THE MATERIAL TO THE STORAGE COMPANY. AS WAS POINTED OUT IN THE LETTER DATED NOVEMBER 15, 1954, FROM THE BEKINS VAN AND STORAGE COMPANY TO YOU. THAT COMPANY IS CONSIDERED A COMMON CARRIER. HENCE, THE NAVY DEPARTMENT, BY PLACING THE MATERIAL WITH THE COMPANY, COMPLIED WITH YOUR INSTRUCTIONS. IN NO WAY CAN THE GOVERNMENT BE CONSIDERED NEGLIGENT.