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B-130391, MAR. 13, 1957

B-130391 Mar 13, 1957
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THE DEPARTMENTS OF THE ARMY AND THE AIR FORCE MAKE AWARDS OF SUCH CONTRACTS TO CARRIERS WHO DO NOT NECESSARILY HOLD IN THEIR OWN NAMES PERMITS OR CERTIFICATES FROM THE INTERSTATE COMMERCE COMMISSION OR STATE PUBLIC UTILITY COMMISSIONS REQUIRED TO PERFORM ALL OF THE SERVICES UNDER THE CONTRACT PROVIDED THAT THE BIDDER HAS AGREEMENTS WITH OTHER CARRIERS HAVING THE NECESSARY CERTIFICATION OR PERMITS TO PERFORM THE WORK FOR WHICH THE BIDDER HIMSELF IS NOT LICENSED. THAT "CARE WILL BE TAKEN TO USE ONLY MOTOR COMMON CARRIERS THAT ARE AUTHORIZED BY THE INTERSTATE COMMERCE COMMISSION OR BY A STATE REGULATORY BODY TO PERFORM THE SERVICE. " WILL MAKE AWARDS ONLY TO BIDDERS HAVING THE NECESSARY CERTIFICATION AND PERMITS IN THEIR OWN NAMES.

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B-130391, MAR. 13, 1957

TO THE SECRETARY OF DEFENSE:

THERE HAS COME TO OUR ATTENTION A MATTER IN REGARD TO THE AWARD OF CONTRACTS BY THE SEVERAL MILITARY SERVICES FOR THE PACKING, CRATING, ETC., OF HOUSEHOLD GOODS OF MILITARY AND CIVILIAN PERSONNEL AND TRANSPORTATION AND INCIDENTAL SERVICES IN CONNECTION THEREWITH WHICH WE DEEM ADVISABLE TO POINT OUT TO YOU FOR YOUR CONSIDERATION.

THE DEPARTMENTS OF THE ARMY AND THE AIR FORCE MAKE AWARDS OF SUCH CONTRACTS TO CARRIERS WHO DO NOT NECESSARILY HOLD IN THEIR OWN NAMES PERMITS OR CERTIFICATES FROM THE INTERSTATE COMMERCE COMMISSION OR STATE PUBLIC UTILITY COMMISSIONS REQUIRED TO PERFORM ALL OF THE SERVICES UNDER THE CONTRACT PROVIDED THAT THE BIDDER HAS AGREEMENTS WITH OTHER CARRIERS HAVING THE NECESSARY CERTIFICATION OR PERMITS TO PERFORM THE WORK FOR WHICH THE BIDDER HIMSELF IS NOT LICENSED. THE DEPARTMENT OF THE NAVY, ON THE OTHER HAND, ON THE BASIS OF ARTICLE 1815-2 (J) OF THE NAVY SHIPPING GUIDE WHICH PROVIDES, IN PERTINENT PART, THAT "CARE WILL BE TAKEN TO USE ONLY MOTOR COMMON CARRIERS THAT ARE AUTHORIZED BY THE INTERSTATE COMMERCE COMMISSION OR BY A STATE REGULATORY BODY TO PERFORM THE SERVICE," WILL MAKE AWARDS ONLY TO BIDDERS HAVING THE NECESSARY CERTIFICATION AND PERMITS IN THEIR OWN NAMES. SUCH CONTRACTS FOR ALL THREE SERVICES ARE SUBJECT TO THE PROVISIONS OF DOD INSTRUCTION 4500.13, MARCH 15, 1955, WHICH PROVIDES UNDER PARAGRAPH 3 OF ENCLOSURE 1:

"CARRIERS TO WHICH SHIPMENTS ARE TENDERED MUST HAVE PROPER OPERATING RIGHTS FROM ORIGIN TO DESTINATION OR MUST HAVE MADE SATISFACTORY ARRANGEMENTS FOR JOINT CARRIAGE WITH OTHER CARRIERS PROPERLY QUALIFIED.

THE POLICIES OF THE DEPARTMENTS OF THE ARMY AND AIR FORCE DO NOT APPEAR TO BE INCONSISTENT WITH THE PROVISIONS OF THE DOD INSTRUCTIONS. IT WOULD ALSO APPEAR THAT UNDER THE LESS RESTRICTIVE POLICIES FOLLOWED BY THE DEPARTMENTS OF THE ARMY AND AIR FORCE THE SERVICES REQUIRED CAN BE OBTAINED AT LOWER COST. WHETHER SUCH POLICIES OR THAT FOLLOWED BY THE DEPARTMENT OF THE NAVY SHOULD BE APPLIED APPEARS TO BE LARGELY A MATTER FOR ADMINISTRATIVE DETERMINATION. HOWEVER, THERE IS SUGGESTED FOR YOUR CONSIDERATION THE ADVISABILITY OF ADOPTING A CONSISTENT POLICY IN REGARD TO THESE CONTRACTS TO BE FOLLOWED THROUGHOUT THE DEPARTMENT OF DEFENSE.

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