A-69353, JANUARY 6, 1936, 15 COMP. GEN. 586

A-69353: Jan 6, 1936

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CONTRACTS - SPECIFICATIONS - BITUMINOUS COAL CONSERVATION ACT OF 1935 CONTRACTS FOR THE PURCHASE OF PACKING HOUSE AND DAIRY PRODUCTS ARE NOT WITHIN THE TERMS OF SECTION 14 (B) OF THE BITUMINOUS COAL CONSERVATION ACT OF 1935. A BID FROM WHICH HAS BEEN DELETED A PROVISION THAT THE CONTRACTOR AGREES THAT HE WILL BUY NO BITUMINOUS COAL TO USE ON OR IN THE CARRYING OUT OF THE CONTRACT FROM ANY BUT A CODE PRODUCER MAY BE CONSIDERED ALONG WITH OTHER BIDS RECEIVED. THE BIDS OF SWIFT AND COMPANY FOR FURNISHING SAID PRODUCTS DURING THE PERIOD INDICATED ARE ENCLOSED AND IT WILL BE NOTED THAT THIS COMPANY HAS DELETED FROM ITS BIDS THE FOLLOWING CONDITION INSERTED PURSUANT TO CIRCULAR LETTER NO. 123. 1935) THE CONTRACTOR AGREES THAT HE WILL BUY NO BITUMINOUS COAL TO USE ON OR IN THE CARRYING OUT OF THIS CONTRACT FROM ANY PRODUCER EXCEPT SUCH PRODUCER BE A MEMBER OF THE BITUMINOUS COAL CODE SET OUT IN ACCORDANCE WITH SECTION 4 OF SAID ACT AS CERTIFIED TO BY THE NATIONAL BITUMINOUS COAL COMMISSION.'.

A-69353, JANUARY 6, 1936, 15 COMP. GEN. 586

CONTRACTS - SPECIFICATIONS - BITUMINOUS COAL CONSERVATION ACT OF 1935 CONTRACTS FOR THE PURCHASE OF PACKING HOUSE AND DAIRY PRODUCTS ARE NOT WITHIN THE TERMS OF SECTION 14 (B) OF THE BITUMINOUS COAL CONSERVATION ACT OF 1935, 49 STAT. 1007, AND A BID FROM WHICH HAS BEEN DELETED A PROVISION THAT THE CONTRACTOR AGREES THAT HE WILL BUY NO BITUMINOUS COAL TO USE ON OR IN THE CARRYING OUT OF THE CONTRACT FROM ANY BUT A CODE PRODUCER MAY BE CONSIDERED ALONG WITH OTHER BIDS RECEIVED.

COMPTROLLER GENERAL MCCARL TO THE ADMINISTRATOR OF VETERANS' AFFAIRS, JANUARY 6, 1936:

THERE HAS BEEN RECEIVED YOUR LETTER OF DECEMBER 24, 1935, AS FOLLOWS:

UNDER DATE OF DECEMBER 12, 1935, THE MANAGER, VETERANS' ADMINISTRATION FACILITY, WICHITA, KANSAS, OPENED BIDS FOR FURNISHING THAT FACILITY DURING THE MONTHS OF JANUARY AND FEBRUARY 1936 CERTAIN PACKING HOUSES AND DAIRY PRODUCTS. THE BIDS OF SWIFT AND COMPANY FOR FURNISHING SAID PRODUCTS DURING THE PERIOD INDICATED ARE ENCLOSED AND IT WILL BE NOTED THAT THIS COMPANY HAS DELETED FROM ITS BIDS THE FOLLOWING CONDITION INSERTED PURSUANT TO CIRCULAR LETTER NO. 123, ISSUED OCTOBER 2, 1935, BY THE PROCUREMENT DIVISION, TREASURY DEPARTMENT:

"IN ACCORDANCE WITH THE PROVISIONS OF SECTION 14 (B) OF THE BITUMINOUS COAL CONSERVATION ACT OF 1935 (PUBLIC, NO. 402, 74TH CONGRESS, APPROVED AUGUST 30, 1935) THE CONTRACTOR AGREES THAT HE WILL BUY NO BITUMINOUS COAL TO USE ON OR IN THE CARRYING OUT OF THIS CONTRACT FROM ANY PRODUCER EXCEPT SUCH PRODUCER BE A MEMBER OF THE BITUMINOUS COAL CODE SET OUT IN ACCORDANCE WITH SECTION 4 OF SAID ACT AS CERTIFIED TO BY THE NATIONAL BITUMINOUS COAL COMMISSION.'

PLEASE ADVISE WHETHER THE BIDS OF SWIFT AND COMPANY SHOULD BE REJECTED IN VIEW OF THEIR REFUSAL TO SUBSCRIBE TO THE ABOVE QUOTED CONDITION, RETURNING THE BIDS WITH YOUR DECISION.

IT WILL BE APPRECIATED IF THIS MATTER IS GIVEN ATTENTION AT YOUR EARLIEST CONVENIENCE AS IT IS ESSENTIAL THAT CONTRACTS FOR SUPPLYING PACKING HOUSE AND DAIRY PRODUCTS BE AWARDED IN SUFFICIENT TIME TO PERMIT THE FACILITY TO PLACE ORDERS IN SUFFICIENT TIME TO PROCURE CERTAIN DELIVERIES BY JANUARY 1, 1936.

THE QUESTION STATED IN THE NEXT TO THE LAST PARAGRAPH OF YOUR LETTER IS ANSWERED IN THE NEGATIVE. THE BIDS OF SWIFTS AND COMPANY SHOULD BE CONSIDERED ALONG WITH OTHER BIDS FOR THE REASON THAT CONTRACTS FOR THE PURCHASE OF SUCH SUPPLIES ARE NOT WITHIN THE TERMS OF SECTION 14 (B) OF THE BITUMINOUS COAL CONSERVATION ACT OF 1935. SEE COPY OF MY DECISION DATED DECEMBER 19, 1935, A-68690, 15 COMP. GEN. 544.