B-125593, NOV. 9, 1955

B-125593: Nov 9, 1955

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TO AL PALEN MOTORS: REFERENCE IS MADE TO YOUR LETTERS OF SEPTEMBER 8 AND OCTOBER 12. ITEMS 3 AND 12 WERE PURCHASED ON AN "EACH" BASIS. WHILE ITEMS 7 AND 9 WERE PURCHASED ON A "LOT" BASIS. THE BID ON THESE ITEMS WAS ACCEPTED AND AWARD MADE TO YOU ON OCTOBER 18. THE NAVAL SUPPLY DEPOT CONCEDED THAT THERE WAS A SHORTAGE OF TWO SHAFTS UNDER ITEM 12 AND REFUNDED $32.59 OF THE PURCHASE PRICE. YOU CONTEND THAT THE CARRIER'S DRIVER DID NOT HAVE A CHECK SHEET OR ANY METHOD OF KNOWING THE QUANTITIES OF MATERIAL RECEIVED BY HIM AND THAT. AFTER BEING TOLD THAT HE HAD ALL THE MATERIAL HE WAS ASKED TO SIGN WHAT HE CONSIDERED RELEASES TO REMOVE THE MATERIAL FROM THE BASE. WAS HELD BY YOU OR YOUR AGENT MAKING THE PICKUP.

B-125593, NOV. 9, 1955

TO AL PALEN MOTORS:

REFERENCE IS MADE TO YOUR LETTERS OF SEPTEMBER 8 AND OCTOBER 12, 1955, REQUESTING REVIEW OF SETTLEMENT DATED AUGUST 23, 1955, WHICH DISALLOWED YOUR CLAIM FOR CERTAIN AMOUNTS STATED TO BE DUE ON ACCOUNT OF AN ALLEGED SHORTAGE IN THE DELIVERY OF SURPLUS PROPERTY PURCHASED BY YOU FROM THE DEPARTMENT OF THE NAVY UNDER CONTRACT NO. N261S-6329, DATED OCTOBER 18, 1954.

THE RECORD SHOWS THAT IN RESPONSE TO INVITATION NO. B-73-55 DATED SEPTEMBER 15, 1954, ISSUED BY THE UNITED STATES NAVAL SUPPLY DEPOT, SAN PEDRO, CALIFORNIA, YOU SUBMITTED AN UNDATED BID OFFERING TO PURCHASE ITEMS NOS. 3, 7, 9 AND 12 FOR THE SPECIFIED PRICES. ITEMS 3 AND 12 WERE PURCHASED ON AN "EACH" BASIS, WHILE ITEMS 7 AND 9 WERE PURCHASED ON A "LOT" BASIS. THE BID ON THESE ITEMS WAS ACCEPTED AND AWARD MADE TO YOU ON OCTOBER 18, 1954, THEREBY CONSUMMATING A VALID AND BINDING CONTRACT BETWEEN THE FEDERAL GOVERNMENT AND YOU. AFTER PAYMENT OF THE PURCHASE PRICE AND DELIVERY OF THE MATERIALS, YOU FILED A CLAIM FOR REFUND OF A PART OF THE PURCHASE PRICE REPRESENTING AN ALLEGED SHORTAGE IN THE QUANTITY RECEIVED. THE NAVAL SUPPLY DEPOT CONCEDED THAT THERE WAS A SHORTAGE OF TWO SHAFTS UNDER ITEM 12 AND REFUNDED $32.59 OF THE PURCHASE PRICE.

YOU CONTEND THAT THE CARRIER'S DRIVER DID NOT HAVE A CHECK SHEET OR ANY METHOD OF KNOWING THE QUANTITIES OF MATERIAL RECEIVED BY HIM AND THAT, AFTER BEING TOLD THAT HE HAD ALL THE MATERIAL HE WAS ASKED TO SIGN WHAT HE CONSIDERED RELEASES TO REMOVE THE MATERIAL FROM THE BASE.

THE NAVAL AMMUNITION AND NET DEPOT, SEAL BEACH, CALIFORNIA, REPORTED THAT AT LEAST ONE COPY OF STANDARD FORMS 114-114A, SALE OF GOVERNMENT PROPERTY, INVITATION, BID AND ACCEPTANCE, WAS HELD BY YOU OR YOUR AGENT MAKING THE PICKUP, AND THAT THESE FORMS LISTED THE MATERIALS PURCHASED. ALSO, IT IS REPORTED THAT THE CARRIER SIGNED A COPY OF THE AUTHORIZATION FOR RELEASE OF MATERIAL (11 ND FORM 3205), AND ACKNOWLEDGED RECEIPT OF ITEMS 3, 7, 9 AND 12. A COPY OF THE RECEIPT WAS FURNISHED TO YOU AS REQUESTED BY YOUR LETTER OF DECEMBER 6, 1954.

IT APPEARS THAT YOUR REQUEST FOR REVIEW IS BASED MAINLY ON THE CONTENTION THAT THE SHORTAGE OCCURRED AFTER YOU INSPECTED THE SURPLUS PROPERTY. THE ADMINISTRATIVE OFFICE HAS EXPRESSLY STATED THAT A CAREFUL INVESTIGATION OF THE MATTER REVEALS THAT ALL MATERIAL OFFERED FOR SALE, EXCEPT THOSE PREVIOUSLY ACKNOWLEDGED TO HAVE BEEN WITHDRAWN, WAS DELIVERED TO YOUR AGENT.

THUS, SO FAR AS THE RECORD BEFORE OUR OFFICE SHOWS, YOU RECEIVED EXACTLY THE MATERIAL PURCHASED BY YOU, EXCEPT AS NOTED. ACCORDINGLY, SINCE THERE IS NO LEGAL BASIS FOR THE ALLOWANCE OF YOUR CLAIM THE SETTLEMENT OF AUGUST 23, 1955, IS SUSTAINED.