B-126487, FEB. 14, 1956

B-126487, FEB. 14, 1956

TO MR. W. RULON LEE, AUTHORIZED CERTIFYING OFFICER, BUREAU OF MINES:

YOUR LETTER OF DECEMBER 28, 1955, REQUESTS AN ADVANCE DECISION AS TO WHETHER THE ACCOMPANYING VOUCHER FOR $95.50 IN FAVOR OF THE WESTINGHOUSE ELECTRIC SUPPLY COMPANY MAY BE CERTIFIED FOR PAYMENT.

YOUR LETTER INDICATES THAT ON JULY 20, 1955, INVITATIONS TO BID (YOUR NUMBER 16-56) WERE ISSUED FOR THE PROCUREMENT OF CERTAIN TRANSFORMERS. THE INVITATION PROVIDED THAT DELIVERY TIME WAS OF THE ESSENCE BUT WAS SILENT AS TO THE METHOD OF SHIPMENT. THE BID OF THE WESTINGHOUSE COMPANY, WHICH WAS ACCEPTED, PROVIDED FOR DELIVERY WITHIN TWO TO THREE WEEKS. PURCHASE ORDER SUBSEQUENTLY ISSUED FOR THE TRANSFORMERS STIPULATED SHIPMENT BY "RAILWAY EXPRESS" AND SHIPMENT WAS MADE BY THAT MEANS. THE VOUCHER REPRESENTS THE CLAIM OF THE WESTINGHOUSE COMPANY FOR THE EXCESS SHIPPING COSTS INCURRED BY REASON OF THE EXPRESS SHIPMENT, AS COMPARED WITH THE "REGULAR" METHOD OR CHEAPEST MEANS OF TRANSPORTATION.

UNDER THE TERMS OF ITS BID, AS REPORTED BY YOU, THE WESTINGHOUSE COMPANY COULD PROPERLY HAVE EMPLOYED ANY SHIPPING MEANS WHICH WOULD EFFECT ACCEPTABLE DELIVERY WITHIN TWO TO THREE WEEKS. AN EXAMINATION OF RATES AND SCHEDULES INDICATES THAT DELIVERY COULD HAVE BEEN MADE WITHIN THE TIME PROVIDED VIA MOTOR TRUCK AT A COST OF $42.88 PLUS $1.29 TAX OR A TOTAL OF $44.17, OR BY RAIL FREIGHT AT A COST OF $44.53 PLUS TAX.

SINCE THE MEANS OF SHIPMENT REQUIRED BY THE PURCHASE ORDER EXCEEDED THE COMPANY'S OBLIGATION UNDER THE CONTRACT, THE COMPANY MAY PROPERLY BE PAID THE DIFFERENCE BETWEEN THE SHIPPING COSTS VIA THE MEANS DESIGNATED IN THE PURCHASE ORDER ($139.67) AND THE CHEAPEST MEANS ACCEPTABLE UNDER THE TERMS OF THE CONTRACT ($44.17). THIS DIFFERENCE IS $95.50, THE AMOUNT OF THE VOUCHER. THE VOUCHER MAY THEREFORE BE CERTIFIED FOR PAYMENT IF OTHERWISE CORRECT.