A-11441, NOVEMBER 5, 1925, 5 COMP. GEN. 329

A-11441: Nov 5, 1925

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CONTRACTS - INCREASED COSTS - ITEMIZED PROPOSALS WHERE IN RESPONSE TO A REQUEST FOR BIDS FOR COAL TO BE DELIVERED AT DESTINATION THE BIDDER ITEMIZED HIS BID SO AS TO SHOW HOW THE DELIVERED PRICE WAS ARRIVED AT. SUCH BIDDER IS NOT LIABLE. FOR THE HANDLING AND SWITCHING CHARGES INCURRED IN ACCOMPLISHING DELIVERY WHEN IT IS CLEARLY SHOWN THAT SUCH CHARGES WERE NOT INCLUDED IN THE PRICE STIPULATED. IT WAS FURTHER PROVIDED THAT THE SUPPLIES PURCHASED SHOULD BE FURNISHED IN ACCORDANCE WITH SCHEDULE A. "INSTRUCTIONS TO BIDDERS AND CONDITIONS AND SPECIFICATION UNDER WHICH PROPOSALS FOR FUEL ARE INVITED AND WILL BE ACCEPTED. " ALL OF WHICH WERE ATTACHED TO THE CONTRACT AND SPECIFICALLY MADE A PART THEREOF.

A-11441, NOVEMBER 5, 1925, 5 COMP. GEN. 329

CONTRACTS - INCREASED COSTS - ITEMIZED PROPOSALS WHERE IN RESPONSE TO A REQUEST FOR BIDS FOR COAL TO BE DELIVERED AT DESTINATION THE BIDDER ITEMIZED HIS BID SO AS TO SHOW HOW THE DELIVERED PRICE WAS ARRIVED AT; I.E., THE PRICE AT THE MINE AND THE FREIGHT FROM THE MINE TO DESTINATION, SUCH BIDDER IS NOT LIABLE, AFTER ACCEPTANCE OF HIS BID, FOR THE HANDLING AND SWITCHING CHARGES INCURRED IN ACCOMPLISHING DELIVERY WHEN IT IS CLEARLY SHOWN THAT SUCH CHARGES WERE NOT INCLUDED IN THE PRICE STIPULATED.

DECISION BY COMPTROLLER GENERAL MCCARL, NOVEMBER 5, 1925:

THE BLACK DIAMOND COAL MINING CO. APPLIED SEPTEMBER 24, 1925, FOR REVIEW OF SETTLEMENT NO. 092529, DATED SEPTEMBER 1, 1925, DISALLOWING ITS CLAIM FOR $20.63, THE AMOUNT PAID BY IT AS HANDLING AND SWITCHING CHARGES ON A CAR OF COAL FURNISHED THE WAR DEPARTMENT AT AUGUSTA ARSENAL, AUGUSTA, GA., UNDER CONTRACT NO. 25-5, DATED JULY 18, 1924.

BY THE CONTRACT REFERRED TO THE CLAIMANT AGREED TO FURNISH AT ITS RISK AND EXPENSE AT THE PLACE AND WITHIN THE TIME STATED FOR EACH CLASS AND AT THE PRICE SET OPPOSITE EACH ITEM THE ARTICLES OR SERVICES LISTED THEREIN. IT WAS FURTHER PROVIDED THAT THE SUPPLIES PURCHASED SHOULD BE FURNISHED IN ACCORDANCE WITH SCHEDULE A, CIRCULAR NO. F.O. AND P., 2433, AND "INSTRUCTIONS TO BIDDERS AND CONDITIONS AND SPECIFICATION UNDER WHICH PROPOSALS FOR FUEL ARE INVITED AND WILL BE ACCEPTED," ALL OF WHICH WERE ATTACHED TO THE CONTRACT AND SPECIFICALLY MADE A PART THEREOF. SCHEDULE A STIPULATED THAT DELIVERY SHOULD BE MADE F.O.B. CARS DESTINATION AUGUSTA ARSENAL, AUGUSTA, GA. THE PRICE OF THE COAL WAS "$2 PER TON F.O.B. MINES; $3.27 FREIGHT; DELIVERED PRICE $5.27.' PAYMENT FOR THE COAL WAS MADE AT THE PRICE OF $5.27 PER TON AND THE CONTRACTOR REQUESTED REIMBURSEMENT FOR THE AMOUNT OF $20.63 PAID BY IT AS HANDLING AND SWITCHING CHARGES, WHICH CLAIM WAS DISALLOWED FOR THE REASON STATED THAT THE TERMS OF THE CONTRACT PROVIDED FOR DELIVERY F.O.B. AUGUSTA ARSENAL, AND THEREFORE THE UNITED STATES WAS NOT LIABLE FOR ANY PORTION OF THE CHARGES INCURRED IN MAKING DELIVERY OF THE COAL AT THAT POINT.

IT IS CONTENDED THAT THE OFFER OF THE CLAIMANT WAS TO FURNISH COAL AT A CERTAIN PRICE F.O.B. MINES PLUS CHARGES IF DELIVERED AT THE CONTRACTOR'S EXPENSE AND THAT IN FIXING THE DELIVERED PRICE THE HANDLING CHARGE OF $15 AND SWITCHING CHARGE OF $5.63 PER CAR WERE NOT INCLUDED, AND THEREFORE IT IS ENTITLED TO A PRICE OF $2 PER TON NET F.O.B. MINES.

PROSPECTIVE BIDDERS WERE INFORMED BY CIRCULAR NO. F.O. AND P. 2433, WHICH WAS MADE A PART OF THE CONTRACT, THAT AUGUSTA ARSENAL, THE POINT OF DESTINATION, WAS LOCATED ON THE AUGUSTA-AIKEN RAILWAY AND ELECTRIC CORPORATION, 3 1/2 MILES FROM THE RAILROAD STATION, AND A SWITCHING CHARGE OF $15 PER CAR WAS MADE BY THIS CORPORATION FOR HAULING CARS TO THE ARSENAL. THE STATEMENT AS TO THIS CHARGE WAS IN THE FORM OF INFORMATION AND WAS NOT STATED IN TERMS THAT BIDDERS MUST ASSUME SUCH CHARGE OR AS REQUIRING BIDDERS TO INCLUDE SUCH CHARGE IN THEIR BILLS, AND THE ITEMIZED BID OF THE CLAIMANT SHOWS THAT IT DID NOT INCLUDE SUCH CHARGE. IF IT BE ASSUMED THAT THE PROPOSALS INTENDED SUCH A CHARGE SHOULD BE INCLUDED, THE CLAIMANT'S BID SHOWED ON ITS FACE THAT THE CHARGE WAS NOT ASSUMED BUT AT BEST THE BID CHANGED OR DEPARTED THEREFROM, AND THE GOVERNMENT ACCEPTED IT IN THE TERMS AS MADE.

I AM CONSTRAINED TO HOLD THAT UNDER ITS BID THE CLAIMANT WAS NOT LIABLE FOR THE HANDLING AND SWITCHING CHARGES, AND AS IT WAS ESTABLISHED THAT IT PAID SUCH CHARGES IT IS ENTITLED TO REIMBURSEMENT THEREFOR.