B-126378, DEC. 23, 1955

B-126378: Dec 23, 1955

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TO THE HONORABLE SECRETARY OF THE NAVY: REFERENCE IS MADE TO A LETTER DATED DECEMBER 15. OFFERED FOR SALE CERTAIN MISCELLANEOUS MATERIAL AMONG WHICH WAS ITEM 16. AWARD WAS MADE ACCORDINGLY. THE DRIVER WAS INFORMED THAT TWO ITEMS ON LOT 16. WERE NOT AVAILABLE FOR DELIVERY. SINCE THE LOT WAS INTACT AT THE TIME OF INSPECTION. SINCE IT APPEARS THAT THE MATERIAL COVERED BY ITEM 16 WAS INSPECTED PRIOR TO THE BID. - AT WHICH TIME IT WAS REPORTED THAT THE ADVERTISED QUANTITY WAS AVAILABLE FOR DELIVERY. - THE PURCHASER IS ENTITLED TO RECEIVE THE QUANTITY INSPECTED OR TO HAVE REFUNDED THE AMOUNT OF THE PURCHASE PRICE. ARE RETURNED HEREWITH.

B-126378, DEC. 23, 1955

TO THE HONORABLE SECRETARY OF THE NAVY:

REFERENCE IS MADE TO A LETTER DATED DECEMBER 15, 1955, WITH ENCLOSURES, FROM THE ASSISTANT SECRETARY OF THE NAVY (MATERIAL), REQUESTING A DECISION AS TO WHETHER RELIEF PROPERLY MAY BE GRANTED TO DANNIN AND SMITH ON ACCOUNT OF A SHORTAGE IN MATERIAL SOLD UNDER CONTRACT NO. N298S-7374, DATED OCTOBER 19, 1955, AND THEREAFTER FOUND TO BE UNAVAILABLE FOR DELIVERY.

THE RECORD SHOWS THAT BY INVITATION NO. B-6-56, DATED SEPTEMBER 27, 1955, THE U.S. NAVAL SUPPLY DEPOT, NEWPORT, RHODE ISLAND, OFFERED FOR SALE CERTAIN MISCELLANEOUS MATERIAL AMONG WHICH WAS ITEM 16, CONSISTING OF 1,152 POUNDS OF NON-FERROUS METAL SHEET STRIP, ON WHICH DANNIN AND SMITH SUBMITTED A BID OF $0.3267 PER POUND, OR A TOTAL BID PRICE OF $376.36. THE BID OF DANNIN AND SMITH ON THIS ITEM BEING THE HIGHEST RECEIVED, AWARD WAS MADE ACCORDINGLY.

BY LETTER OF DECEMBER 6, 1955, MR. A. G. SMITH--- PARTNER IN THE FIRM OF DANNIN AND SMITH--- ADVISED THE COMMANDING OFFICER OF THE U.S. NAVAL SUPPLY DEPOT THAT WHEN HIS DRIVER CALLED TO PICK UP THE LOTS AWARDED UNDER THE CONTRACT, THE DRIVER WAS INFORMED THAT TWO ITEMS ON LOT 16, AMOUNTING TO 548 POUNDS, WERE NOT AVAILABLE FOR DELIVERY. SINCE THE LOT WAS INTACT AT THE TIME OF INSPECTION, MR. SMITH REQUESTED THAT THE ENTIRE QUANTITY PURCHASED BE DELIVERED TO HIM OR THAT HE BE REFUNDED THE PURCHASE PRICE OF $376.36. ON THE BASIS OF THE FACTS DISCLOSED BY THE RECORD, THE COMMANDING OFFICER OF THE U.S. NAVAL SUPPLY DEPOT RECOMMENDED THAT THE CONTRACT BE RESCINDED AS TO ITEM 16 AND THAT THE AMOUNT OF $376.36 BE REFUNDED TO THE PURCHASER.

SINCE IT APPEARS THAT THE MATERIAL COVERED BY ITEM 16 WAS INSPECTED PRIOR TO THE BID--- AT WHICH TIME IT WAS REPORTED THAT THE ADVERTISED QUANTITY WAS AVAILABLE FOR DELIVERY--- THE PURCHASER IS ENTITLED TO RECEIVE THE QUANTITY INSPECTED OR TO HAVE REFUNDED THE AMOUNT OF THE PURCHASE PRICE. ACCORDINGLY, WE AGREE WITH THE RECOMMENDATION OF THE COMMANDING OFFICER THAT THE CONTRACT BE RESCINDED AS TO ITEM 16 AND REFUND MADE TO THE CONTRACTOR OF THE SUM OF $376.36, AND YOUR ACTION SHOULD BE ACCORDINGLY.

THE ENCLOSURES TO YOUR LETTER, WITH THE EXCEPTION OF THE COMMANDING OFFICER'S LETTER OF NOVEMBER 29, 1955, ARE RETURNED HEREWITH.