A-94591, MAY 3, 1938, 17 COMP. GEN. 899

A-94591: May 3, 1938

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

CONTRACTS - FOREIGN PRODUCTS - SUBSTITUTION FOR AMERICAN PRODUCTS - DOMESTIC MANUFACTURE OF SIMILAR ARTICLES DOUBTFUL WHERE LOW BIDDER TOOK NO EXCEPTION TO SPECIFICATION REQUIREMENT THAT MATERIAL BE MANUFACTURED IN THE UNITED STATES BUT NOTED ON ITS INVOICE THAT THE MATERIAL DELIVERED UNDER ITS ACCEPTED BID WAS OF FOREIGN MANUFACTURE. UNLESS IT IS ESTABLISHED THAT MATERIAL MEETING THE SPECIFICATIONS IS IN FACT NOT MANUFACTURED IN THE UNITED STATES. BIDS FOR WHICH WERE OPENED BY THE DEPOT QUARTERMASTER. ON WHICH REQUIREMENTS THE FOLLOWING BIDS WERE RECEIVED: CHART BIDDER: PRICE DISCOUNT THE HORSTMANN UNIFORM CO . - 2.05 2 PERCENT 10 NO EXCEPTION WHATEVER WAS TAKEN TO THE FOREIGN CLAUSE MADE A PART OF THESE BIDS BY THE HORSTMANN UNIFORM COMPANY AND N.

A-94591, MAY 3, 1938, 17 COMP. GEN. 899

CONTRACTS - FOREIGN PRODUCTS - SUBSTITUTION FOR AMERICAN PRODUCTS - DOMESTIC MANUFACTURE OF SIMILAR ARTICLES DOUBTFUL WHERE LOW BIDDER TOOK NO EXCEPTION TO SPECIFICATION REQUIREMENT THAT MATERIAL BE MANUFACTURED IN THE UNITED STATES BUT NOTED ON ITS INVOICE THAT THE MATERIAL DELIVERED UNDER ITS ACCEPTED BID WAS OF FOREIGN MANUFACTURE, AND IT APPEARS ANOTHER BIDDER ALSO INTENDED TO FURNISH MATERIAL OF FOREIGN MANUFACTURE, THE CONTRACTOR SHOULD BE REQUIRED TO FURNISH MATERIAL OF DOMESTIC MANUFACTURE IN ACCORDANCE WITH THE TERMS OF ITS CONTRACT AND TITLE III OF THE ACT OF MARCH 3, 1933, 47 STAT. 1520, UNLESS IT IS ESTABLISHED THAT MATERIAL MEETING THE SPECIFICATIONS IS IN FACT NOT MANUFACTURED IN THE UNITED STATES, IN WHICH EVENT THE DELIVERY MAY BE ACCEPTED WITH PAYMENT AT THE CONTRACT PRICE UPON THE FILING WITH THE CONTRACT OF A CERTIFICATE TO THAT EFFECT.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE QUARTERMASTER, HEADQUARTERS, UNITED STATES MARINE CORPS, MAY 3, 1938:

THERE HAS BEEN RECEIVED YOUR LETTER OF APRIL 27, 1938, AS FOLLOWS:

UNDER SCHEDULE NO. 561, BIDS FOR WHICH WERE OPENED BY THE DEPOT QUARTERMASTER, MARINE CORPS, PHILADELPHIA, PA., ON 4 MARCH 1938, THE MARINE CORPS ADVERTISED FOR, AMONG OTHER ITEMS, 70 YARDS OF GOLD BRAID, NO. 8, 3/8-INCH, TO BE IN ACCORDANCE WITH MARINE CORPS SPECIFICATIONS ADOPTED 28 JUNE 1921, COPY INCLOSED, ON WHICH REQUIREMENTS THE FOLLOWING BIDS WERE RECEIVED:

CHART

BIDDER: PRICE DISCOUNT

THE HORSTMANN UNIFORM CO ------------------ $1.25 ------

N. S. MEYER, INC -------------------------- 1.69 1 PERCENT 10

G. HIRSCH SONS, INC ----------------------- 2.05 2 PERCENT 10

NO EXCEPTION WHATEVER WAS TAKEN TO THE FOREIGN CLAUSE MADE A PART OF THESE BIDS BY THE HORSTMANN UNIFORM COMPANY AND N. S. MEYER, INC. HOWEVER, THE BID OF G. HIRSCH SONS, INC., WAS CONDITIONED INDICATING THE GOLD BRAID THIS FIRM PROPOSED FURNISHING WAS MADE IN FRANCE. ACCORDINGLY AWARD WAS MADE TO THE HORSTMANN UNIFORM COMPANY, PURCHASE ORDER, REQUISITION NOS. 1547 AND 1552, DATED 14 MARCH 1938, COPY INCLOSED, WITH THE FOREIGN CLAUSE MADE A CONDITION THEREOF. IN BILLING THIS ACCOUNT FOR PAYMENT, THE CONTRACTOR, AS WILL BE NOTED BY THE INCLOSED COPY OF INVOICE DATED 31 MARCH 1938, MADE NOTATION THEREON THAT THE BRAID THEY DELIVERED IS OF FOREIGN MANUFACTURE. FURTHERMORE, IT APPEARS THAT EXCEPTION TO THE FOREIGN CLAUSE SHOULD LIKEWISE HAVE BEEN TAKEN IN THE BID OF N. S. MEYER, INC., AS WILL BE NOTED FROM THE INFORMATION APPEARING IN THE INCLOSED COPY OF LETTER OF THIS FIRM DATED 22 APRIL 1938. IN VIEW OF THE CIRCUMSTANCES INSTRUCTIONS ARE REQUESTED ON THIS SPECIFIC INSTANCE AS WELL AS WHAT COURSE OF ACTION SHOULD BE TAKEN ON FUTURE SIMILAR CASES WHICH WILL NO DOUBT OCCUR. THE BID OF THE HORSTMANN UNIFORM COMPANY IS ALSO INCLOSED FOR YOUR INFORMATION, WHICH IT IS REQUESTED BE RETURNED TOGETHER WITH THE CERTIFIED BILL WITH YOUR DECISION IN THE MATTER.

PROMPT ATTENTION TO THIS MATTER IS REQUESTED AS THERE IS A FORMAL CONTRACT INVOLVED IN PURCHASE UNDER THE ABOVE REFERRED TO SCHEDULE, AND AS A RESULT DELAY IN DISPOSING OF COPIES MUST NECESSARILY BE OBVIATED.

WHILE N. S. MEYER, INC., HAS STATED IN LETTER OF APRIL 22, 1938, THAT GOLD BRAID IS NOT MANUFACTURED IN THE UNITED STATES, THERE IS NO STATEMENT TO THAT EFFECT IN YOUR ABOVE QUOTED LETTER AND IT WOULD SEEM SOMEWHAT STRANGE THAT THERE SHOULD BE NO MANUFACTURERS OF GOLD BRAID IN THIS COUNTRY, CONSIDERING THE DEMAND THEREFOR BY VARIOUS MILITARY AND NONMILITARY ORGANIZATIONS FOR THEIR UNIFORMS. IF IT BE A FACT THAT GOLD BRAID MEETING THE REQUIREMENTS IN THIS INSTANCE IS MANUFACTURED IN THE UNITED STATES, THE CONTRACTORS SHOULD BE REQUIRED TO FURNISH SUCH BRAID OF DOMESTIC MANUFACTURE IN ACCORDANCE WITH THE TERMS OF ITS CONTRACT AND THE TERMS OF TITLE III OF THE ACT OF MARCH 3, 1933, 47 STAT. 1520, 1521. SUCH BRAID IS NOT MANUFACTURED IN THE UNITED STATES, A CERTIFICATE TO THAT EFFECT SHOULD BE FILED WITH THE CONTRACT AND THE DELIVERY ACCORDINGLY MAY BE ACCEPTED WITH PAYMENT TO THE CONTRACTOR OF THE CONTRACT PRICE IF OTHERWISE CORRECT.