B-125595, OCT. 17, 1955

B-125595: Oct 17, 1955

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TO THE HONORABLE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 24. THE BRIAN MILLS WAS REPRESENTED AT THE BID OPENING ON JULY 27. WAS ACCEPTED AND AWARD WAS MADE TO THE COMPANY ON AUGUST 2. FIVE OTHER BIDS WERE RECEIVED WHICH RANGED IN PRICE OF $0.078 TO $0.0361 PER YARD. IT HAS BEEN ASCERTAINED INFORMALLY FROM YOUR DEPARTMENT THAT ELLIOTT REICH IS THE SOLE OWNER OF BRIAN MILLS AND THAT THERE IS NO OTHER PERSON INVOLVED IN THE TRANSACTION. REICH ADVISED THE DISPOSAL OFFICER THAT HE WISHED TO BE RELEASED FROM THE CONTRACT APPARENTLY ON THE GROUNDS THAT HE DID NOT UNDERSTAND THE TYPE OR WIDTH OF THE FABRIC ON WHICH HIS BID WAS BASED. REICH INVITED ATTENTION TO THE FACT THAT HE WAS BEING TREATED FOR A FATIGUE DISABILITY BY THE VETERANS ADMINISTRATION AND THAT AT THE TIME HE MADE HIS BID HE WAS UNDER PRESSURE AND THEREFORE COULD NOT MAKE CLEAR DECISIONS.

B-125595, OCT. 17, 1955

TO THE HONORABLE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED SEPTEMBER 24, 1955, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY OF THE NAVY, REQUESTING A DECISION AS TO THE APPROPRIATE ACTION TO BE TAKEN WITH RESPECT TO AN ERROR THE BRIAN MILLS, NEW YORK, NEW YORK, ALLEGES IT MADE IN ITS BID SUBMITTED IN RESPONSE TO INVITATION NO. B-1-56 DATED JULY 12, 1955.

THE INVITATION, ISSUED BY THE UNITED STATES NAVAL SUPPLY FACILITY, BROOKLYN, NEW YORK, REQUESTED BIDS FOR THE PURCHASE FROM THE GOVERNMENT OF VARIOUS ITEMS OF SURPLUS TEXTILES AND TRIMMINGS DESCRIBED UNDER ITEMS 1 TO 24, INCLUSIVE. THE BRIAN MILLS WAS REPRESENTED AT THE BID OPENING ON JULY 27, 1955, BY MR. ELLIOTT REICH AND THE COMPANY'S HIGH BID OF $0.115 PER YARD ON ITEM 24, CLOTH, COTTON, WIGAN, BLACK, 34 INCHES, WAS ACCEPTED AND AWARD WAS MADE TO THE COMPANY ON AUGUST 2, 1955. FIVE OTHER BIDS WERE RECEIVED WHICH RANGED IN PRICE OF $0.078 TO $0.0361 PER YARD.

IT HAS BEEN ASCERTAINED INFORMALLY FROM YOUR DEPARTMENT THAT ELLIOTT REICH IS THE SOLE OWNER OF BRIAN MILLS AND THAT THERE IS NO OTHER PERSON INVOLVED IN THE TRANSACTION. BY LETTER DATED AUGUST 9, 1955, MR. REICH ADVISED THE DISPOSAL OFFICER THAT HE WISHED TO BE RELEASED FROM THE CONTRACT APPARENTLY ON THE GROUNDS THAT HE DID NOT UNDERSTAND THE TYPE OR WIDTH OF THE FABRIC ON WHICH HIS BID WAS BASED. MR. REICH INVITED ATTENTION TO THE FACT THAT HE WAS BEING TREATED FOR A FATIGUE DISABILITY BY THE VETERANS ADMINISTRATION AND THAT AT THE TIME HE MADE HIS BID HE WAS UNDER PRESSURE AND THEREFORE COULD NOT MAKE CLEAR DECISIONS. A REPORT DATED AUGUST 10, 1955, WAS RECEIVED FROM THE VETERANS ADMINISTRATION REGIONAL OFFICE, NEW YORK, NEW YORK, ADVISING THAT MR. REICH WAS SUFFERING FROM A SCHIZOPHRENIC REACTION, PARANOID TYPE, AND THAT HE HAS BEEN RECEIVING TREATMENT FOR HIS DISABILITY ONCE A WEEK SINCE JUNE 26, 1952.

ALTHOUGH IT IS REPORTED THAT IT IS THE POLICY OF THE VETERANS ADMINISTRATION NOT TO MAKE STATEMENTS AS TO WHETHER A PATIENT IS INCOMPETENT TO ENTER INTO A CONTRACT, SINCE THE REPORT OF AUGUST 10, 1955, FURNISHED BY THE VETERANS ADMINISTRATION, SHOWS THAT MR. REICH HAD BEEN RECEIVING MEDICAL TREATMENT OF THE KIND REFERRED TO FOR OVER THREE YEARS, THERE IS A STRONG PROBABILITY THAT HE MAY NOT HAVE BEEN COMPETENT TO ENTER INTO THE CONTRACT ON THE DATE HE EXECUTED HIS BID.

ACCORDINGLY, WE WILL NOT OBJECT TO THE CANCELLATION OF THE CONTRACT IN THIS PARTICULAR CASE.