A-83059, JANUARY 28, 1937, 16 COMP. GEN. 697

A-83059: Jan 28, 1937

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- AND WHERE QUOTATIONS ARE SUBMITTED THEREUNDER ON BASIS OF SHIPMENT ON GOVERNMENT BILL OF LADING WITH FREIGHT CHARGE INCURRED BY THE GOVERNMENT TO BE DEDUCTED FROM THE PRICE BID. THAT BID IS FOR ACCEPTANCE WHICH. WILL RESULT IN THE LOWEST NET CHARGE AGAINST PUBLIC MONEYS. BIDS WERE OPENED AT THE BROOKSVILLE. RESPONSES FROM THE FOLLOWING COMPANIES WERE RECEIVED: LONE STAR CEMENT CO. ALL OF THE BIDDERS HAVE ATTACHED RIDERS TO THEIR BIDS EXPLAINING IN DETAIL THAT THEIR OFFERS UNDER THE ITEM 2 PRICE MEAN THAT THE SHIPMENTS ARE TO MOVE ON GOVERNMENT BILLS OF LADING BUT THAT THE AMOUNT OF FREIGHT INCURRED BY THE FEDERAL GOVERNMENT MAY BE SUBTRACTED FROM THE ABOVE MENTIONED DESTINATION COST IN DETERMINING PAYMENT TO BE MADE TO THEM.

A-83059, JANUARY 28, 1937, 16 COMP. GEN. 697

ADVERTISING - BIDS - EVALUATION - F.O.B. DELIVERIES ON GOVERNMENT BILL OF LADING ADVERTISED SPECIFICATIONS FOR THE FURNISHING OF CEMENT PROPERLY MAY REQUIRE BIDS ON THE BASIS OF F.O.B. GOVERNMENT DESTINATION, AS WELL AS F.O.B. POINT OF BIDDER'S SELECTION--- FACTORY OR OTHERWISE--- AND WHERE QUOTATIONS ARE SUBMITTED THEREUNDER ON BASIS OF SHIPMENT ON GOVERNMENT BILL OF LADING WITH FREIGHT CHARGE INCURRED BY THE GOVERNMENT TO BE DEDUCTED FROM THE PRICE BID, THAT BID IS FOR ACCEPTANCE WHICH, HAVING REGARD FOR LAND-GRANT OR OTHER ADVANTAGES AVAILABLE IN SUCH CONNECTION, WILL RESULT IN THE LOWEST NET CHARGE AGAINST PUBLIC MONEYS.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF AGRICULTURE, JANUARY 28, 1937:

THERE HAS BEEN RECEIVED YOUR LETTER OF JANUARY 14, 1937, AS FOLLOWS:

UNDER DATE OF DECEMBER 23, 1936, BIDS WERE OPENED AT THE BROOKSVILLE, FLORIDA, FIELD STATION OF THIS DEPARTMENT FOR 600 SACKS OF PORTLAND CEMENT FOR USE IN C.C.C. CAMP A-1 AT THAT POINT, QUOTATIONS BEING REQUESTED F.O.B. BROOKSVILLE, FLORIDA, AND F.O.B. BIDDER'S SHIPPING POINT. RESPONSES FROM THE FOLLOWING COMPANIES WERE RECEIVED:

LONE STAR CEMENT CO., 1812 COMER BLDG., BIRMINGHAM, ALABAMA.

PENNSYLVANIA DIXIE CEMENT CORPORATION, 1410 RHODES HAVERTY BUILDING, ATLANTA, GEORGIA.

UNIVERSAL ATLAS CEMENT COMPANY, 630 BROWN-MARX BUILDING, BIRMINGHAM, ALABAMA.

ALPHA PORTLAND CEMENT COMPANY, 1202 WEBB CRAWFORD BUILDING, BIRMINGHAM, ALABAMA.

LEHIGH PORTLAND CEMENT COMPANY, 2019 SIXTH AVENUE NORTH, BIRMINGHAM, ALABAMA.

FLORIDA PORTLAND CEMENT COMPANY, 305 MORGAN STREET, TAMPA, FLORIDA.

ALL OF THE ABOVE COMPANIES BID UNDER ITEM 1, F.O.B. BROOKSVILLE, FLORIDA, 62 1/2 CENT PER SACK. UNDER ITEM 2 ALL OF THE BIDDERS EXCEPT THE FLORIDA PORTLAND CEMENT COMPANY QUOTED $0.5964775 PER SAC, AND THE FLORIDA PORTLAND CEMENT COMPANY QUOTED $0.59647 PER SACK, AS A DESTINATION COST PRICE TO THE GOVERNMENT FOR SHIPMENT ON GOVERNMENT BILL OF LADING. ALL OF THE ABOVE COMPANIES, WITH THE EXCEPTION OF THE FLORIDA PORTLAND CEMENT COMPANY, QUOTED PROMPT PAYMENT DISCOUNTS OF 2 1/2 CENT PER SACK. ALL OF THE BIDDERS HAVE ATTACHED RIDERS TO THEIR BIDS EXPLAINING IN DETAIL THAT THEIR OFFERS UNDER THE ITEM 2 PRICE MEAN THAT THE SHIPMENTS ARE TO MOVE ON GOVERNMENT BILLS OF LADING BUT THAT THE AMOUNT OF FREIGHT INCURRED BY THE FEDERAL GOVERNMENT MAY BE SUBTRACTED FROM THE ABOVE MENTIONED DESTINATION COST IN DETERMINING PAYMENT TO BE MADE TO THEM.

THE BIDS OF ALL THE COMPANIES EXCEPT THE FLORIDA PORTLAND CEMENT COMPANY ARE THEREFORE IDENTICAL IN PRICE AND THEIR QUOTATIONS UNDER ITEM 2 ARE THE LOWEST PRICES AVAILABLE TO THE GOVERNMENT UNDER THE SOLICITATION.

HOWEVER, IN VIEW OF GENERAL ACCOUNTING OFFICE SETTLEMENT NUMBER 0428423, IN THE ACCOUNTS OF MAJOR E. C. MORTON, FINANCE DEPARTMENT, U.S. ARMY, UNDER DATE OF DECEMBER 3, 1936, BY REASON OF WHICH THE LONE STAR CEMENT CORPORATION SUFFERED A DISALLOWANCE OF $88.83, UNDER APPARENTLY SIMILAR CIRCUMSTANCES FOR THE REASON THAT OTHERWISE IT WOULD HAVE BENEFITED BY A LAND GRANT DEDUCTION TO WHICH THE GOVERNMENT WAS ENTITLED, YOUR DECISION IS REQUESTED AS TO WHETHER OR NOT ITEM 2 OF ONE OF THE FIVE LOW BIDDERS SHOULD BE ACCEPTED IN THE PRESENT CASE OR WHETHER THE DEPARTMENT SHOULD ACCEPT THE DESTINATION PRICE UNDER ITEM 1OF ONE OF THE FIVE COMPANIES. THE EVENT THAT YOU BELIEVE THAT ANY CHANGE IN THE GOVERNMENT FORM OF ADVERTISING FOR THIS COMMODITY SHOULD BE MADE, YOUR ADVICE AS TO A PREFERRED FORM WILL BE APPRECIATED.

THE BID FILE OF THE INSTANT CASE IS ENCLOSED FOR YOUR INFORMATION. THERE IS URGENT NEED FOR THE CEMENT, YOUR EARLY DECISION WILL BE APPRECIATED.

THE DECISIONS OF THIS OFFICE HAVE BEEN TO THE EFFECT THAT COST OF DELIVERY IS ALWAYS A MATTER FOR CONSIDERATION BY THE GOVERNMENT IN DETERMINING WHICH IS IN FACT THE LOWEST BID RECEIVED. 10 COMP. GEN. 402. AND IN ORDER THAT THIS MAY BE ACCOMPLISHED, THE ADVERTISEMENT FOR BIDS SHOULD PROVIDE FOR SUBMISSION OF BIDS F.O.B. GOVERNMENT'S DESTINATION AND F.O.B. POINT OF BIDDER'S SELECTION--- FACTORY OR OTHERWISE--- SO THAT THE GOVERNMENT, HAVING REGARD FOR LAND-GRANT OR OTHER ADVANTAGES AVAILABLE IN SUCH CONNECTION, MAY ACCEPT THAT BID WHICH WILL RESULT IN THE LOWEST NET AVAILABLE CHARGE AGAINST PUBLIC MONEYS.

IT APPEARS THAT IN THIS CASE BIDS WERE REQUESTED AS REQUIRED BY THE DECISIONS OF THIS OFFICE, AND IN SUBMITTING THEIR BIDS EACH OF THE BIDDERS QUOTED A PRICE WITH THE UNDERSTANDING THAT THE CEMENT SHOULD BE SHIPPED ON GOVERNMENT BILL OF LADING AND THAT THE AMOUNT OF FREIGHT INCURRED BY THE GOVERNMENT SHOULD BE DEDUCTED THEREFROM. THERE WOULD APPEAR TO BE NO OBJECTION TO THE SUBMISSION AND CONSIDERATION OF BIDS ON SUCH A BASIS.

ANSWERING YOUR QUESTION SPECIFICALLY, YOU ARE ADVISED THAT THE ONLY BID WHICH MAY BE ACCEPTED IN THIS INSTANCE IS THE ONE WHICH WOULD RESULT IN THE LOWEST NET CHARGE AGAINST PUBLIC MONEYS CONSIDERING COST TO GOVERNMENT OF EFFECTING DELIVERY.