B-151481, APR. 1, 1964
Highlights
THOMPSON AND COMPANY: REFERENCE IS MADE TO YOUR LETTER OF JANUARY 22. YOU STATE THAT THE SUCCESSFUL CONTRACTOR WILL START OPERATIONS ON MAY 1. THE CONTRACTOR'S PRICE FOR OPERATION BECOMES AN AMOUNT WHICH HE IS TO ADD TO HIS FISCAL YEAR 1965 PRICE. YOU QUESTION WHETHER THE APPLICATION OF SUCH FUNDS TO AN OPERATION PERFORMED IN THE PRIOR YEAR IS PROPER SINCE THE FUNDS INVOLVED ARE FISCAL YEAR OPERATING FUNDS. THIS WAS FOR THE SOLE PURPOSE OF EVALUATING THE RESPECTIVE BIDDER'S PROPOSALS. ACTUAL FUNDING OF THE CONTRACT WAS. IS. IT IS FURTHER REPORTED THAT BY LETTER DATED FEBRUARY 11. ALL BIDDERS WERE NOTIFIED OF A CHANGE IN THE PHASE-IN PERIOD REQUIREMENTS AND THEY WERE REQUESTED TO REVIEW THEIR PROPOSALS FOR THE PURPOSE OF CONFIRMING OR MAKING ANY CHANGES THEREIN BY FEBRUARY 24.
B-151481, APR. 1, 1964
TO JOHN I. THOMPSON AND COMPANY:
REFERENCE IS MADE TO YOUR LETTER OF JANUARY 22, 1964, IN WHICH YOU REQUEST CLARIFICATION ON A QUESTION INVOLVING THE APPLICATION OF FUNDS UNDER THE PROPOSED CONTRACT TO BE AWARDED BY THE DEPARTMENT OF THE AIR FORCE FOR OPERATION OF THE AIR FORCE PUBLICATIONS DISTRIBUTION CENTER AT BENGIES, MARYLAND, UNDER REQUEST FOR PROPOSALS NO. 36-600-64-5078, AS AMENDED.
YOU STATE THAT THE SUCCESSFUL CONTRACTOR WILL START OPERATIONS ON MAY 1, 1964, BUT FROM THAT DATE THROUGH JUNE 30, 1964, THE CONTRACTOR'S PRICE FOR OPERATION BECOMES AN AMOUNT WHICH HE IS TO ADD TO HIS FISCAL YEAR 1965 PRICE. YOU QUESTION WHETHER THE APPLICATION OF SUCH FUNDS TO AN OPERATION PERFORMED IN THE PRIOR YEAR IS PROPER SINCE THE FUNDS INVOLVED ARE FISCAL YEAR OPERATING FUNDS.
BY LETTER DATED MARCH 6, 1964, THE DEPARTMENT OF THE AIR FORCE ADVISED US THAT WHILE THE INSTRUCTIONS UNDER THE SUBJECT REQUEST FOR PROPOSALS PROVIDED THAT THE BIDDERS PROPOSED COST FOR PHASE-IN DURING FISCAL YEAR 1964 WOULD BE ADDED TO ITS PROPOSED SUBSEQUENT FISCAL YEAR OPERATING COSTS, THIS WAS FOR THE SOLE PURPOSE OF EVALUATING THE RESPECTIVE BIDDER'S PROPOSALS, AND ACTUAL FUNDING OF THE CONTRACT WAS, AND IS, TO BE DONE ON A SEPARATE FISCAL YEAR BASIS.
IT IS FURTHER REPORTED THAT BY LETTER DATED FEBRUARY 11, 1964, ALL BIDDERS WERE NOTIFIED OF A CHANGE IN THE PHASE-IN PERIOD REQUIREMENTS AND THEY WERE REQUESTED TO REVIEW THEIR PROPOSALS FOR THE PURPOSE OF CONFIRMING OR MAKING ANY CHANGES THEREIN BY FEBRUARY 24, 1964. THE LETTER OF FEBRUARY 11, READS, IN PERTINENT PART, AS FOLLOWS:
"1. REFERENCE YOUR PROPOSAL FOR THE OPERATION OF THE AIR FORCE PUBLICATION DISTRIBUTION CENTER, BE ADVISED OF THE FOLLOWING CHANGES IN SCHEDULED DATES FOR THE PHASE-IN OF THE MIDDLE RIVER FACILITY AND THE FULLY OPERATIONAL PERIOD OF SAID FACILITY. THIS INCLUDES A MODIFIED PHASE IN DURING MONTH OF JUNE 1964 AS SET FORTH BELOW:
"A. THE PHASE IN PERIOD IS HEREBY CHANGED TO 1 JULY THRU 31 AUG 1964 IN LIEU OF 1 MAY THRU JUNE 1964. NOTE: YOUR PROPOSED PLAN FOR THE PHASE IN PERIOD, AS SUBMITTED, IS BEING CONSIDERED FIRM FOR THE NEW PERIOD.
"B. THE FIRST YEAR'S OPERATIONAL PERIOD IS HEREBY CHANGED TO 1 SEP. 1964 THRU 30 JUNE 1965 IN LIEU OF 1 JULY 1964 THRU 30 JUNE 1965, A REDUCTION OF 2 MONTHS.
"C. THE GENERAL WAREHOUSE PORTION OF THE MIDDLE RIVER FACILITY WILL BE AVAILABLE 1 JUNE 1964 FOR INSTALLATION OF WAREHOUSE EQUIPMENT. ALSO DURING THE PERIOD 8 JUNE THRU 30 JUNE 1964 THE FACILITY MUST BE CAPABLE OF RECEIVING AND STORING SHIPMENTS UP TO 100 TONS PER DAY, 0800 TO 1700 HOURS, MONDAYS THROUGH FRIDAYS, OF UNCLASSIFIED NEW MATERIAL FROM PRINTERS. THERE WILL BE NO DISTRIBUTION OF PUBLICATIONS FROM THE MIDDLE RIVER FACILITY DURING THE MONTH OF JUNE.'
IN VIEW OF THE ABOVE ADVICE, IT DOES NOT APPEAR THAT THE PROPOSED CONTRACT WILL RESULT IN A MISAPPLICATION OF FISCAL YEAR FUNDS.