A-68882, FEBRUARY 27, 1936, 15 COMP. GEN. 741

A-68882: Feb 27, 1936

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CONTRACTS - EXCESS DELIVERIES - ENVELOPES FOR DISTRICT OF COLUMBIA THERE IS NO BINDING OBLIGATION UPON THE DISTRICT OF COLUMBIA TO MAKE PAYMENT FOR ENVELOPES VOLUNTARILY DELIVERED IN EXCESS OF CONTRACT REQUIREMENTS. PAYMENT FOR SUCH EXCESS AT THE CONTRACT PRICE WILL NOT BE OBJECTED TO IF THERE EXISTS A PRESENT CONTEMPLATED NEED THEREFOR AND THE PREVAILING PRICE IS NOT LOWER THAN AT THE TIME OF THE CONTRACT. AS FOLLOWS: HEREWITH IS VOUCHER DATED NOVEMBER 21. 000 ENVELOPES WAS RECEIVED AUGUST 6. WAS PAID ON VOUCHER NO. 119123 DATED NOVEMBER 25. REFORMATORY HAS SUBMITTED THIS VOUCHER THROUGH THE CUSTOMARY CHANNELS WITH THE FOLLOWING EXPLANATION: "* * * PLEASE BE ADVISED THAT WE HAVE APPROVED A VOUCHER IN THE AMOUNT OF $1.

A-68882, FEBRUARY 27, 1936, 15 COMP. GEN. 741

CONTRACTS - EXCESS DELIVERIES - ENVELOPES FOR DISTRICT OF COLUMBIA THERE IS NO BINDING OBLIGATION UPON THE DISTRICT OF COLUMBIA TO MAKE PAYMENT FOR ENVELOPES VOLUNTARILY DELIVERED IN EXCESS OF CONTRACT REQUIREMENTS, BUT PAYMENT FOR SUCH EXCESS AT THE CONTRACT PRICE WILL NOT BE OBJECTED TO IF THERE EXISTS A PRESENT CONTEMPLATED NEED THEREFOR AND THE PREVAILING PRICE IS NOT LOWER THAN AT THE TIME OF THE CONTRACT.

COMPTROLLER GENERAL MCCARL TO THE PRESIDENT, BOARD OF COMMISSIONERS, DISTRICT OF COLUMBIA, FEBRUARY 27, 1936:

THERE HAS BEEN CONSIDERED YOUR LETTER OF DECEMBER 13, 1935, AS FOLLOWS:

HEREWITH IS VOUCHER DATED NOVEMBER 21, 1935, IN THE AMOUNT OF $368.18, IN FAVOR OF THE OLD COLONY ENVELOPE COMPANY COVERING EXCESS OVER ORDER DELIVERY OF 41,000 BROWN CRAFT ENVELOPES TO BE USED IN THE MAILING OF AUTOMOBILE IDENTIFICATION PLATES, ON CONTRACT NO. DC I 5274 DATED JUNE 27, 1935, FOR THE FURNISHING OF 190,000 ENVELOPES, ALSO ENCLOSED. THE COMPLETE SHIPMENT OF 231,000 ENVELOPES WAS RECEIVED AUGUST 6, 1935, AND A VOUCHER IN THE AMOUNT OF $1,706.20 FOR 190,000 ENVELOPES, THE QUANTITY STIPULATED IN THE CONTRACT, AND WAS PAID ON VOUCHER NO. 119123 DATED NOVEMBER 25, 1935. THE VOUCHER IN DISPUTE HEREWITH REPRESENTS THE COST OF THE EXCESS DELIVERY OF 41,000 ENVELOPES, THE CHECK FOR $1,706.20 FOR THE NET AMOUNT OF THE ORDER HAVING BEEN ACCEPTED UNDER PROTEST BY THE CONTRACTOR.

THE SUPERINTENDENT OF THE D.C. REFORMATORY HAS SUBMITTED THIS VOUCHER THROUGH THE CUSTOMARY CHANNELS WITH THE FOLLOWING EXPLANATION:

"* * * PLEASE BE ADVISED THAT WE HAVE APPROVED A VOUCHER IN THE AMOUNT OF $1,706.20 WHICH WILL PAY FOR 190,000 ENVELOPES. WE ARE ALSO SIGNING AN ADDITIONAL VOUCHER IN THE AMOUNT OF $368.18, WHICH IS FOR THE EXCESS DELIVERY OF 41,000 ENVELOPES.

"WE CAN USE THE ADDITIONAL ENVELOPES IF YOU ARE AGREEABLE FOR THE PAYMENT OF SAME AND THE PERMITTING OF OUR RETAINING THESE ENVELOPES FOR THE CONTEMPLATED INCREASE IN REGISTRATIONS, AND THE NECESSITY OF KEEPING A SURPLUS SUPPLY OF ENVELOPES ON HAND.'

THE CONTRACTOR, THE OLD COLONY ENVELOPE COMPANY, EXPLAINS THIS OVERSHIPMENT IN A LETTER ADDRESSED TO THE ASSISTANT AUDITOR, D.C., DATED OCTOBER 11, 1935, ENCLOSED HEREWITH.

THE COMMISSIONERS ARE OF THE OPINION THAT THE CONTRACTOR ACTED IN GOOD FAITH IN AN EARNEST DESIRE TO GIVE THE DISTRICT OF COLUMBIA THE ADVANTAGE OF PREVAILING LOW PRICES, AND SINCE THE OVERSHIPMENT HAS DEVELOPED INTO A DISTINCT BENEFIT TO THE DISTRICT OF COLUMBIA, FINANCIALLY AND OTHERWISE, IT IS REQUESTED THAT YOU ADVISE THE COMMISSIONERS WHETHER ANY OBJECTION WILL BE RAISED IN THE DISBURSING OFFICER'S ACCOUNT TO THE PAYMENT OF THIS VOUCHER.

THE REFERRED-TO LETTER OF OCTOBER 11, 1935, FROM THE CONTRACTOR IS AS FOLLOWS:

THE WRITER WISHES TO CONFIRM HIS VISIT WITH YOU YESTERDAY WHEN WE DISCUSSED THE SUBJECT OF OVERSHIPMENT OF TAG ENVELOPES ON ORDER NO. PO 18266 OF JUNE 28TH. THE REASON FOR THIS OVERSHIPMENT WAS ONLY ON OUR DESIRE TO BE OF HELP TO YOUR DEPARTMENT BY MAKING AN OVERSHIPMENT OF APPROXIMATELY 21 M ENVELOPES.

WE FELT, AND WE HAD EVERY REASON TO BELIEVE FROM THE CONVERSATIONS WHICH WE HAD HAD WHILE THIS ORDER WAS BEING DISCUSSED, THAT YOU WOULD REQUIRE ADDITIONAL ENVELOPES THIS YEAR TO TAKE CARE OF THE INCREASED REGISTRATION BROUGHT ABOUT BY THE INFLUX OF ADDITIONAL HELP IN WASHINGTON THIS YEAR FOR THE NEW DEPARTMENTS WHICH WERE CONTEMPLATED BEING SET UP.

WE FELT, AND JUSTLY SO, THAT IF WE COULD RUN AN ADDITIONAL 21 OR 25 M ENVELOPES THAT IT WOULD SAVE THE DEPARTMENT LATER ON APPROXIMATELY $5.00 TO $6.00 PER M OR ABOUT $100 TO $125.00. THIS WAS THE FIRST ORDER WHICH WE HAD EVER RECEIVED FROM THE DISTRICT OF COLUMBIA FOR ENVELOPES; AND YOU MAY REST ASSURED THAT WE HAVE LEARNED OUR LESSON, AND NEVER AGAIN WILL WE MAKE AN OVERSHIPMENT ON ANY ORDERS WHICH WE ARE SUCCESSFUL IN OBTAINING. WE HOPE, THEREFORE, THAT YOU WILL NOT PENALIZE US FOR OUR DESIRE TO BE OF ASSISTANCE AND THAT YOU WILL ACCEPT THE OVERSHIPMENT.

WE MIGHT TELL YOU THAT WE HAVE BEEN ADVISED BY THE DEPARTMENT OF MOTOR VEHICLES THAT THEY DO NOT EXPECT TO CHANGE THE STYLE OF THE ENVELOPE IN 1936, AND THAT THESE ENVELOPES CAN BE USED IN ANY SUCCESSIVE YEAR THAT YOU SO DESIRE; AND THAT THERE WILL NOT BE ANY LOSS BY THE DEPARTMENT ACCEPTING THESE, AND THAT BY REDUCING THE QUANTITY THAT YOU PURCHASE THE FOLLOWING YEAR, YOU WILL STILL BE ABLE TO WITHIN THE TWO-YEAR PERIOD KEEP WITHIN THE APPROPRIATION. WE WOULD LIKE TO EXPLAIN TO YOU NOW THAT BY YOUR BUYING OUR DUO-SERVE ENVELOPES, THE DISTRICT OF COLUMBIA WERE ABLE TO MAKE A SAVING OF $2,400 OVER THE TYPE OF ENVELOPES USED IN PREVIOUS YEARS.

IT THUS APPEARS CLEAR THAT THE EXCESS DELIVERY OF ENVELOPES HERE RESULTED SOLELY FROM A VOLUNTARY ACT ON THE PART OF THE CONTRACTOR. IT IS WELL SETTLED THAT A PERSON CANNOT MAKE ANOTHER HIS DEBTOR FOR SERVICES RENDERED WITHOUT CONSENT OF THE PERSON BENEFITED. OBVIOUSLY, IN THE CIRCUMSTANCES INVOLVED HERE, THERE CAN BE NO BINDING OBLIGATION UPON THE DISTRICT OF COLUMBIA TO ACCEPT THE EXCESS DELIVERY OF ENVELOPES AND MAKE PAYMENT THEREFOR. HOWEVER, IF THERE BE A PRESENT OR IMMEDIATELY CONTEMPLATED NEED FOR THE ENVELOPES DELIVERED IN EXCESS OF THE CONTRACT REQUIREMENT AND THE PREVAILING PRICE OF SUCH ENVELOPES IS NOT LOWER NOW THAN AT THE TIME THE CONTRACT WAS MADE, AND YOU WILL SO CERTIFY ON THE VOUCHER, THIS OFFICE WILL NOT BE REQUIRED IN THIS INSTANCE TO OBJECT TO THE PROPOSED PAYMENT FOR THE EXCESS DELIVERY AT THE CONTRACT RATE, IF THE MATTER IS OTHERWISE CORRECT.

YOU ARE ADVISED ACCORDINGLY. THE PAPERS FORWARDED WITH YOUR LETTER ARE RETURNED.