B-131961, AUGUST 1, 1957, 37 COMP. GEN. 75

B-131961: Aug 1, 1957

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SALES - SPOT BIDS - LATE - ANNOUNCEMENT OF HIGH BIDDER UNDER A SPOT BID SALES INVITATION WHICH PROVIDES THAT THE AWARD OF EACH SALE ITEM WILL BE MADE TO THE HIGHEST ACCEPTABLE RESPONSIVE BIDDER IMMEDIATELY AFTER CONSIDERATION OF ALL BIDS RECEIVED FOR EACH SALE ITEM. THE ANNOUNCEMENT OF THE HIGH BIDDER ON A PARTICULAR ITEM AND THE PROGRESSION OF THE SALE TO THE NEXT ITEM CONSTITUTE AN AWARD AND THE RECEIPT OF A LATE BID WHICH WAS MAILED ON TIME BUT NOT RECEIVED PRIOR TO THE ANNOUNCEMENT MAY NOT BE CONSIDERED IN THE ABSENCE OF A PROVISION IN THE INVITATION WHICH WOULD SAVE THE RIGHTS OF BIDDERS WHOSE BIDS WERE DELAYED IN THE MAILS. 1957: REFERENCE IS MADE TO LETTER DATED JUNE 26. BIDS WILL BE OPENED IN NUMERICAL SEQUENCE AND AWARDS MADE TO THE HIGHEST BIDDER.

B-131961, AUGUST 1, 1957, 37 COMP. GEN. 75

SALES - SPOT BIDS - LATE - ANNOUNCEMENT OF HIGH BIDDER UNDER A SPOT BID SALES INVITATION WHICH PROVIDES THAT THE AWARD OF EACH SALE ITEM WILL BE MADE TO THE HIGHEST ACCEPTABLE RESPONSIVE BIDDER IMMEDIATELY AFTER CONSIDERATION OF ALL BIDS RECEIVED FOR EACH SALE ITEM, THE ANNOUNCEMENT OF THE HIGH BIDDER ON A PARTICULAR ITEM AND THE PROGRESSION OF THE SALE TO THE NEXT ITEM CONSTITUTE AN AWARD AND THE RECEIPT OF A LATE BID WHICH WAS MAILED ON TIME BUT NOT RECEIVED PRIOR TO THE ANNOUNCEMENT MAY NOT BE CONSIDERED IN THE ABSENCE OF A PROVISION IN THE INVITATION WHICH WOULD SAVE THE RIGHTS OF BIDDERS WHOSE BIDS WERE DELAYED IN THE MAILS.

TO THE SECRETARY OF THE ARMY, AUGUST 1, 1957:

REFERENCE IS MADE TO LETTER DATED JUNE 26, 1957, FROM THE DEPUTY ASSISTANT SECRETARY (LOGISTICS), FURNISHING A REPORT RELATIVE TO THE PROTEST OF SUNDFELT EQUIPMENT COMPANY, INC., SEATTLE, WASHINGTON, AND REQUESTING A DECISION AS TO WHETHER BIDS SUBMITTED BY THE NATIONAL METAL AND STEEL CORPORATION ON ITEMS NOS. 115 AND 116 OF INVITATION NO. AVI-04- 513-S-57-22, PROPERLY MAY BE OPENED AND CONSIDERED FOR AWARD.

THE SHARPE GENERAL DEPOT, LATHROP, CALIFORNIA, ON APRIL 17, 1957, ISSUED AN ANNOUNCEMENT ( INVITATION NO. AVI-04-513-S-57-22) OF A " SPOT BID" SALE TO BE HELD BY THE PROPERTY DISPOSAL BRANCH ON MAY 15, 1957, FOR SOME 125 ITEMS OF PROPERTY. ITEMS NOS. 115 AND 116, THE ONES HERE INVOLVED, EACH COVER ONE FAIRBANKS MORSE MODEL 37F16 MARINE DIESEL ENGINE. THE INNER SIDE OF THE ANNOUNCEMENT CONTAINS THE FOLLOWING STATEMENTS:

AT THIS " SPOT BID" SALE, YOU INSPECT THE PROPERTY OFFERED FOR SALE DURING THE SPECIFIED TIME, PLACE YOUR BIDS ON INDIVIDUAL BID CARDS AND (AFTER SIGNING) DEPOSIT THEM IN THE PRE-NUMBERED BID BOX CORRESPONDING TO THE ITEM NUMBER ON WHICH YOU BID OR MAIL BID TO THE ADDRESS LISTED BELOW. (REFER TO SAMPLE BID CARD AND SPECIAL INSTRUCTIONS ATTACHED TO CATALOGUE.) PROMPTLY AT 10:00 A.M. ON 15 MAY 1957, BIDS WILL BE OPENED IN NUMERICAL SEQUENCE AND AWARDS MADE TO THE HIGHEST BIDDER.

FULL PAYMENT FOR THE SPOT BID SALE ITEM MUST BE TENDERED BEFORE DELIVERY OF PURCHASE WILL BE EFFECTED. PAYMENT MUST BE MADE IN CASH, CASHIER'S CHECK, MONEY ORDER, CERTIFIED OR TRAVELER'S CHECK. PERSONAL OR FIRM CHECKS WILL NOT BE ACCEPTED. MAKE ALL CHECKS PAYABLE TO THE TREASURER OF THE UNITED STATES.

THE SUCCESSFUL BIDDER MAY REMOVE THE PROPERTY IMMEDIATELY UPON NOTIFICATION OF AWARD AND THE COMPLETION OF CONTRACT, BUT IN ANY EVENT ALL PROPERTY AWARDED ON THIS SALE MUST BE REMOVED FROM THIS DEPOT ON OR BEFORE THE TIME SPECIFIED IN NOTICE OF AWARD TO PREVENT ASSESSMENT OF STORAGE CHARGES.

THE INVITATION CONTAINS A NUMBER OF REFERENCES TO THE OPENING OF BIDS AND MANNER OF MAKING AWARD. PAGE 1 OF THE INVITATION CONTAINS THE FOLLOWING REFERENCES TO OPENING OF BIDS AND AWARDS:

MAILED OR ADVANCE BIDS WILL BE ACCEPTED. BIDDERS NEED NOT BE PRESENT TO BE ELIGIBLE.

WHERE: PROPERTY DISPOSAL BRANCH, SECTION 6, WAREHOUSE B-4, SHARPE GENERAL DEPOT, LATHROP, CALIFORNIA.

WHEN: REGISTRATION TO BEGIN AT 7:30 A.M. 22 APRIL 1957 THRU 9:55 A.M., 15 MAY 1957. BIDS TO BE OPENED ON ITEM 1 AT 10:00 A.M., 15 MAY 1957.

INSPECTION: 7:30 A.M. THRU 3:30 P.M. 22 APRIL 1957 THRU 14 MAY 1957, SATURDAYS, SUNDAYS AND HOLIDAYS EXCEPTED AND 7:30 TO 9:00 A.M., 15 MAY 1957, WHEN INSPECTION WILL BE TERMINATED FOR EACH ITEM AS THE BIDS FOR ITEMS ARE CLOSED. EACH PERSON DESIRING TO INSPECT MATERIAL WILL BE REQUIRED TO SIGN OUR REGISTER AND OBTAIN IDENTIFICATION BADGE.

HOW TO BID: ALL BIDS MUST BE PLACED IN BID BOX LOCATED IN SECTION 6, WAREHOUSE B-4, USING SPOT BID SALE FORM, WHICH WILL BE FURNISHED BIDDERS. THERE WILL BE A SEPARATE BID BOX FOR EACH SPOT BID SALE ITEM MARKED WITH THE CORRESPONDING NUMBER. BIDS MAY BE PLACED IN THE BID BOXES ANY TIME DURING INSPECTION AND ON THE DAY OF THE SALE. BIDS FOR SPOT BID SALE, ITEM NO. 1, WILL BE REMOVED FROM THE BID BOX AT APPROXIMATELY 10:00 A.M. ON THE DAY OF THE SALE FOR CONSIDERATION AND AWARD, AFTER WHICH ITEM NO. 2 WILL BE OPENED AND CONSIDERED. THIS PROCEDURE WILL CONTINUE UNTIL ALL SPOT BID SALE ITEMS HAVE BEEN CONSIDERED AND AWARDED. BIDS MAY BE PLACED IN BID BOXES UNTIL IT IS PUBLICLY ANNOUNCED THAT THE BOX IS CLOSED FOR DEPOSIT BIDS.

AWARD: AWARD OF SPOT BID SALE ITEMS WILL BE MADE IMMEDIATELY TO THE HIGHEST ACCEPTABLE RESPONSIVE BIDDER. EACH SPOT BID SALE ITEM WILL BE CONSIDERED, AWARDED AND PUBLICLY ANNOUNCED BEFORE THE NEXT SALE ITEM IS CONSIDERED. THE GOVERNMENT RESERVES THE RIGHT TO REJECT ANY OR ALL BIDS. AN ITEM REJECTED FOR INSUFFICIENT BID MAY BE RE-OFFERED AFTER ALL SALE ITEMS HAVE BEEN CALLED AND OFFERED. SUCCESSFUL BIDDERS WILL RECEIVE A WRITTEN NOTICE OF AWARD ON FORM SB-7.

PAYMENT: FULL PAYMENT FOR THE SPOT BID SALE ITEMS MUST BE TENDERED BEFORE DELIVERY OF PURCHASE WILL BE EFFECTED. PAYMENT MUST BE MADE IN CASH, CASHIER'S CHECK, MONEY ORDER, CERTIFIED OR TRAVELER'S CHECK. PERSONAL OR FIRM CHECKS WILL NOT BE ACCEPTED. MAKE ALL CHECKS PAYABLE TO THE TREASURER OF THE UNITED STATES.

ON PAGE 3 THE FOLLOWING CONDITIONS ARE FOUND:

ARTICLE A. PUBLIC OPENING. ALL BIDS ON THIS SALE WILL BE OPENED IN SECTION 6, WAREHOUSE B-4, SHARPE GENERAL DEPOT, LATHROP, CALIFORNIA. INFORMATION AS TO AWARDS WILL BE AVAILABLE IMMEDIATELY AFTER GOVERNMENT'S ACCEPTANCE OF BID FOR EACH SALE ITEM. THIS INFORMATION WILL BE PUBLICLY ANNOUNCED TO ALL PARTIES PRESENT IN THE SALE ROOM AND LATER TO ALL PROPERLY INTERESTED PARTIES. WRITTEN NOTICE OF AWARD WILL BE MAILED TO SUCCESSFUL BIDDERS ON FORM SB-7. LATE BIDS RECEIVED AFTER PUBLIC OPENING WILL NOT BE ACCEPTED.

ARTICLE B. PAYMENT. FULL PAYMENT MUST BE MADE AT TIME OF AWARD OR WITHIN 10 DAYS FROM DATE OF NOTICE OF AWARDS IN ACCORDANCE WITH GENERAL CONDITION 5.

ARTICLE E. AWARD. AWARD OF EACH SALE ITEM WILL BE MADE TO THE HIGHEST ACCEPTABLE RESPONSIBLE BIDDER IMMEDIATELY AFTER CONSIDERATION OF ALL BIDS RECEIVED FOR EACH SALE ITEM. THE GOVERNMENT RESERVES THE RIGHT TO REJECT ANY OR ALL BIDS AND IN THE EVENT OF REJECTION OF BID, AT THE DISCRETION OF THE CONTRACTING OFFICER, THE SALE ITEM WILL BE AWARDED TO THE HIGHEST RESPONSIBLE BIDDER OR REOFFERED AFTER ALL OTHER ITEMS HAVE BEEN AWARDED, TIME PERMITTING.

ON PAGE 4 THERE IS THE FOLLOWING REFERENCE TO BIDS:

TELEGRAPHIC BIDS: TELEGRAPHIC BIDS WILL NOT BE CONSIDERED. MODIFICATION BY TELEGRAPH OF BIDS ALREADY SUBMITTED WILL BE CONSIDERED IF RECEIVED PRIOR TO THE TIME AND DATE OF SALE. TELEGRAPHIC MODIFICATIONS SHALL NOT REVEAL THE AMOUNT OF THE ORIGINAL OR REVISED BID.

ON PAGE 5 THE FOLLOWING REFERENCE IS MADE TO LATE BIDS:

LATE BIDS: BIDS RECEIVED AFTER THE TIME FIXED FOR OPENING WILL NOT BE CONSIDERED AFTER AWARDS HAVE BEEN PUBLICLY ANNOUNCED.

THE FACTS AS REPORTED BY THE CHIEF, PROPERTY DISPOSAL BRANCH, SHARPE GENERAL DEPOT, ARE AS FOLLOWS:

4. AT 10:00 A.M. ON 15 MAY 1957 IT WAS ANNOUNCED THAT THE SPOT BID SALE WAS OPEN AND THAT BIDS ON ITEM NO. 1 WOULD BE CONSIDERED. ADDITIONAL BIDS WERE REQUESTED FROM THE FLOOR. WHEN IT WAS DETERMINED THAT NO ADDITIONAL BIDS WERE FORTHCOMING FROM THOSE PRESENT ON THE FLOOR, IT WAS ANNOUNCED THAT BIDDING ON ITEM NO. 1 WAS CLOSED. AT THAT TIME THE PROPERTY DISPOSAL OFFICER SCRUTINIZED THE BIDS AND ANNOUNCED THE AMOUNT OF THE HIGH BID AND FROM WHOM IT WAS SUBMITTED. IT IS IMPORTANT TO NOTE THAT AT THE TIME THE SALE WAS ANNOUNCED AS OPEN IT WAS STATED THAT THE ANNOUNCEMENT OF THE HIGH BIDDER ON ANY ITEM DID NOT CONSTITUTE AN AWARD. THIS PROCEDURE CONTINUED ITEM BY ITEM UNTIL ALL THE ITEMS WERE COMPLETED. UNDER THESE CIRCUMSTANCES THE ITEM 115 BIDS WERE CLOSED AT APPROXIMATELY 11:45 A.M. AND ITEM 116 WITHIN FIVE OR TEN MINUTES THEREAFTER. BIDS WERE INVITED FROM THE FLOOR AND RECEIVED ON ITEM 115 AS LATE AS 11:45 A.M. THE ANNOUNCEMENT WAS MADE OF THE HIGH BIDDER ON ITEMS 115 AND 116 AS SUNDFELT EQUIPMENT CO., INC., 220 HUDSON STREET, SEATTLE, WASHINGTON. SUNDFELT'S BIDS WERE SUBMITTED ON SPOT SALE BID CARDS, SU FORM 290, BY MR. E. G. SUNDFELT, PRESIDENT OF THE SUNDFELT EQUIPMENT CO., INC., WHO WAS PRESENT AT THE SALE. THESE CARDS WERE SUBMITTED BY HIM WHEN BIDS FROM THE FLOOR WERE REQUESTED ON ITEMS 115 AND 116 AT APPROXIMATELY 11:45 A.M.

5. LATER THAT AFTERNOON, BY TELEPHONE, MR. SUNDFELT REQUESTED THE PROPERTY DISPOSAL OFFICER TO ISSUE THE WRITTEN NOTICE OF AWARD TO HIM SO THAT HE COULD MAKE FIRM ARRANGEMENTS FOR SECURING THE PAYMENT FOR THE SUPPLIES. HE WAS ADVISED THAT IT WOULD BE ADMINISTRATIVELY BURDENSOME TO ISSUE THE AWARD AT THAT TIME BUT THAT IT WAS INTENDED THAT THE AWARDS WOULD BE MAILED THE NEXT DAY. MR. SUNDFELT ASKED WHETHER IT WAS DEFINITE THAT HE WOULD GET THE AWARD. HE WAS ADVISED THAT UPON THE INFORMATION PRESENTLY AVAILABLE TO THE PROPERTY DISPOSAL OFFICER HE WAS THE HIGH BIDDER AND THAT THE AWARD WOULD ISSUE IN DUE COURSE. THE FOLLOWING MORNING, 16 MAY 1957, A TELEPHONE CALL WAS RECEIVED BY THE PROPERTY DISPOSAL OFFICER FROM MR. J. T. FANNING, NATIONAL METAL AND STEEL CORP., FROM LONG BEACH, CALIFORNIA. MR. FANNING WANTED TO KNOW IF HE WERE THE HIGH BIDDER ON ITEMS 115 AND 116. HE WAS TOLD THAT NO BIDS HAD BEEN RECEIVED FROM NATIONAL METAL AND STEEL CORPORATION. MR. FANNING STATED THAT HE HAD MAILED BIDS IN ON ITEMS 115 AND 116. THE PROPERTY DISPOSAL OFFICER IMMEDIATELY CHECKED HIS RECORDS FOR LATE BIDS AND AMONG THE LATE BIDS WERE DISCOVERED TWO ENVELOPES FROM NATIONAL METAL AND STEEL CORP. WHICH HAD BEEN DEEMED LATE AND THEREFORE UNOPENED AND MR. FANNING WAS ADVISED OF THIS. MR. FANNING ASSERTED THAT HE HAD MAILED THE BIDS IN SUFFICIENT TIME AND THEY SHOULD HAVE ARRIVED ON TIME AND HAVE BEEN CONSIDERED. THE PROPERTY DISPOSAL OFFICER STATED, HOWEVER, THAT THEY HAD ARRIVED LATE AND HAD NOT BE CONSIDERED. MR. FANNING THEN STATED THAT HE WISHED TO PURSUE THE MATTER WITH A HIGHER AUTHORITY AND WAS REFERRED TO THE COMMANDING OFFICER WHO ADVISED MR. FANNING THAT THE MATTER WOULD BE THOROUGHLY REVIEWED.

6. UPON REVIEW IT WAS DETERMINED THAT THE ENVELOPES MAILED BY NATIONAL METAL AND STEEL CORP. WERE ADDRESSED AS FOLLOWS:

SHARPE GENERAL DEPOT,

U.S. ARMY,

LATHROP, CALIFORNIA.

ATTENTION: PROPERTY DISPOSAL OFFICER.

SPOT SALE BID NO. AVI-04-513-S-57-22.

TO BE OPENED: MAY 15, 1957.

( ITEM NO. 115.)

SHARPE GENERAL DEPOT,

U.S. ARMY,

LATHROP, CALIFORNIA.

ATTENTION: PROPERTY DISPOSAL OFFICER.

SPOT SALE BID NO. AVI-04-513-S-57-22.

TO BE OPENED: MAY 15, 1957.

( ITEM NO. 116.)

THE ENVELOPES WERE PREPRINTED " VIA AIR MAIL" AND EACH ENVELOPE HAD 6 CENTS (TWO, THREE CENT STAMPS PER ENVELOPE) AFFIXED THERETO. THE POSTMARK READ AS FOLLOWS: " LONG BEACH, CALIFORNIA, MAY 13, 1957, 8:30 P.M.' THE ENVELOPES ALSO BEAR A SHARPE GENERAL DEPOT HEADQUARTERS STAMP WHICH SIGNIFIES THE DATE AND TIME IT WAS RECEIVED IN THE MAIL ROOM AT HEADQUARTERS, SHARPE GENERAL DEPOT. THE DATE IS 15 MAY 1957 AND THE TIME INDICATED IS 10:15 A.M. THE ENVELOPES ALSO BEAR A STAMPED RECEIPT OF PROPERTY DISPOSAL BRANCH SHOWING RECEIPT OF 15 MAY 1957 AT 1:30 P.M.

7.THE OFFICIAL POST OFFICE FOR THE DEPOT IS LATHROP, CALIFORNIA. THE POST OFFICE DOES NOT DELIVER MAIL TO THE DEPOT. IT IS PICKED UP BY DEPOT REPRESENTATIVES AT THE POST OFFICE. THE DEPOT MAIL ROOM REPRESENTATIVE NORMALLY LEAVES FOR THE POST OFFICE AT 9:15 A.M. DAILY TO DELIVER PARCEL POST AND OTHER MAIL AND AT THAT TIME PICKS UP ANY MAIL AT THE POST OFFICE FOR SHARPE GENERAL DEPOT. THIS IS NOT A SCHEDULED PICKUP BUT IS MADE ONLY WHEN IT IS NECESSARY FOR THE MAIL ROOM REPRESENTATIVE TO DELIVER ITEMS TO THE POST OFFICE. THE REGULARLY SCHEDULED PICKUP IS AT 0:30 A.M. DAILY. IT IS THE PRACTICE AND PROCEDURE OF THE MAIL ROOM TO SORT ALL MAIL. WHEN ANY ENVELOPE APPEARS ON ITS FACE TO BE A BID IT IS SEGREGATED. IMMEDIATELY UPON COMPLETION OF SORTING THE RECEIVING STAMP IS SET BY HAND TO THE TIME THEN APPEARING ON THE MAIL-ROOM CLOCK, THE ENVELOPES ARE STAMPED AND THEN DELIVERED TO THE PROPER OFFICE ON THE DEPOT. IT MUST BE ASSUMED, THEREFORE, THAT THE PICKUP OF THIS MAIL WAS MADE BETWEEN 9:30 AND 10:00 A.M. AT THE LATHROP POST OFFICE BY THE DEPOT MAIL ROOM REPRESENTATIVE. THE PRECISE TIME THAT THE ENVELOPES WERE DISPATCHED FROM THE MAIL ROOM TO PROPERTY DISPOSAL OFFICE CANNOT BE DETERMINED. ALTHOUGH THE PROPERTY DISPOSAL OFFICE RECEIVING STAMP SHOWS A TIME ALMOST THREE HOURS SUBSEQUENT TO THE RECEIPT AT HEADQUARTERS IT IS KNOWN THAT ALL OF THE PROPERTY DISPOSAL BRANCH PERSONNEL IN THE DISPOSAL OFFICE WHERE MAIL IS RECEIVED WERE HELPING WITH THE SPOT BID SALE AND IT IS POSSIBLE THAT THE BIDS OF NATIONAL METAL AND STEEL CORP. MAY, IN FACT, HAVE BEEN DELIVERED TO THE PROPERTY DISPOSAL BRANCH SHORTLY AFTER 10:30 A.M. BUT NOT STAMPED IN UNTIL AFTER THE SALE AT 1:30 P.M.

8. A TELEPHONE CALL WAS PLACED, ON 16 MAY 1957, TO THE POST OFFICE AT LATHROP AND A MRS. ELLIOTT, AT THAT POST OFFICE, ADVISED THAT IN THE NORMAL COURSE OF MAIL AN AIR MAIL LETTER DEPOSITED AT LONG BEACH AT 8:30 A.M. ON 13 MAY 1957 WOULD REACH LATHROP SOME TIME DURING THE FOLLOWING DAY, 14 MAY 1957. A LETTER HAS BEEN WRITTEN TO THE POST OFFICE REQUESTING A WRITTEN STATEMENT TO THIS EFFECT. FOLLOWING THIS REVIEW, DURING THE AFTERNOON OF 16 MAY 1957, A CALL WAS PLACED TO MR. FANNING TO STATE THAT AN AWARD WOULD BE WITHHELD ON THESE BIDS UNTIL A COMPLETE REVIEW HAD BEEN MADE AND HE WOULD BE ADVISED OF THE DECISION OF THE CONTRACTING OFFICER. HE STATED DURING THE TELEPHONE CALL THAT HE HAD INFORMALLY CHECKED WITH THE LONG BEACH POST OFFICE WHICH STATED THAT IN THE NORMAL COURSE OF MAIL THE DESCRIBED LETTERS WOULD HAVE REACHED THE LATHROP POST OFFICE NO LATER THAN 10 O-CLOCK ON 15 MAY 1957. SHORTLY THEREAFTER A TELEPHONE CALL WAS MADE TO MR. E. G. SUNDFELT OF THE SUNDFELT EQUIPMENT CO., INC., TO ADVISE HIM THAT A BIDDER WHO HAD SUBMITTED A LATE BID WHICH HAD BEEN UNOPENED WAS PROTESTING ANY FAILURE TO CONSIDER HIS BID AND THAT AWARD WOULD BE HELD UP PENDING CONSIDERATION OF THE MATTER AND THAT HE WOULD BE ADVISED AS SOON AS DECISION HAD BEEN REACHED IN THE MATTER. MR. SUNDFELT STATED OVER THE TELEPHONE THAT HE WOULD PROTEST AWARD TO ANY PERSON OTHER THAN HIS COMPANY. ON 17 MAY 1957, THERE WAS RECEIVED FROM NATIONAL METAL A TELEGRAM ( INCL. NO. 8) DATED 16 MAY 1957, PROTESTING THE FAILURE TO CONSIDER THEIR BID. LATER THAT DAY MR. J. T. FANNING TELEPHONED MR. TROWE, THE DEPOT LEGAL OFFICER, AND STATED THAT, UPON RECONSIDERATION, THE COMPANY WISHED TO WITHDRAW ITS PROTEST. WITHIN SEVERAL HOURS A TELEGRAM ( INCL. NO. 9) WAS RECEIVED FROM NATIONAL METAL CONFIRMING THAT CONVERSATION.

9. IT HAS NOT BEEN POSSIBLE TO SECURE A STATEMENT FROM ANY PERSON AS TO THE EXACT TIME THAT THE ENVELOPES WERE DELIVERED TO THE PROPERTY DISPOSAL OFFICE. IN VIEW OF PAST EXPERIENCE AND PROCEDURES, HOWEVER, BIDS RECEIVED AT THE DEPOT HEADQUARTERS MAIL ROOM ARE DELIVERED TO THE PROPERTY DISPOSAL OFFICE WITHIN 30 MINUTES FROM THE TIME THAT THEY ARE STAMPED AT THE DEPOT HEADQUARTERS MAIL ROOM. IT MUST BE CONCLUDED, THEREFORE, THAT THESE ENVELOPES WERE DELIVERED TO THE PROPERTY DISPOSAL OFFICE AFTER 10:00 A.M. BUT PRIOR TO 11:15 OR 11:30 ON 15 MAY 1957. AS STATED ABOVE, BECAUSE OF THE PRESENCE OF ALL PERSONNEL OF THE PROPERTY DISPOSAL OFFICE AT THE SALE, THE PROPERTY DISPOSAL OFFICER WAS NOT AWARE OF THEIR DELIVERY AT THE TIME HE CALLED FOR BIDS ON ITEMS 115 AND 116. BASED UPON THE FOREGOING, IT MAY BE CONCLUDED THAT THE BIDS OF NATIONAL METAL ARRIVED AT THE LATHROP, CALIFORNIA, POST OFFICE AND WERE IN THE POSSESSION OF A REPRESENTATIVE OF THE DEPOT MAIL ROOM PRIOR TO 10:00 A.M. ON 15 MAY 1957. IT MAY ALSO BE CONCLUDED THAT THE BIDS, INCLUDING THE TELEGRAPHIC AMENDMENTS, OF NATIONAL METAL WERE DELIVERED TO THE PROPERTY DISPOSAL OFFICE AFTER 10:00 A.M. BUT PRIOR TO 11:45 A.M., THE TIME WHEN BIDS WERE CALLED FROM THE FLOOR ON ITEMS 115 AND 116 AND, THEREFORE, PRIOR TO THE TIME SUNDFELT EQUIPMENT CO. SUBMITTED ITS BID FROM THE FLOOR. FURTHER, IN VIEW OF THE FACT THAT IT WAS OFFICIALLY STATED AT THE OPENING OF THE SALE THAT PUBLIC ANNOUNCEMENT OF THE HIGHEST BIDDER ON EACH ITEM WOULD NOT CONSTITUTE AN AWARD, NO AWARD MAY BE CONSIDERED TO HAVE BEEN MADE ON THESE ITEMS. ACCORDINGLY, IT IS RECOMMENDED THAT THE BIDS OF NATIONAL METAL AND STEEL CORP. MAY BE CONSIDERED TIMELY BIDS AND THAT THEY BE OPENED AND CONSIDERED FOR AWARD.

THE SUNDFELT EQUIPMENT COMPANY CONTENDS THAT AWARDS WERE MADE TO IT ON ITEMS 115 AND 116 UPON THE PUBLIC ANNOUNCEMENT THAT IT WAS THE HIGH BIDDER IN ACCORDANCE WITH THE TERMS OF THE SALE AS SET FORTH IN THE INVITATION; THAT IT SUBMITTED A CERTIFIED CHECK IN THE AMOUNT OF $64,053.52, REPRESENTING THE PURCHASE PRICE FOR THE TWO ITEMS, AND THAT, THEREFORE, IT IS ENTITLED TO RECEIVE THE TWO PIECES OF EQUIPMENT.

IT IS STATED IN THE ABOVE REPORT THAT "AT THE TIME THE SALE WAS ANNOUNCED AS OPEN IT WAS STATED THAT THE ANNOUNCEMENT OF THE HIGH BIDDER ON ANY ITEM DID NOT CONSTITUTE AN AWARD.' HOWEVER, IT WOULD APPEAR TO US THAT THE PROVISIONS OF THE INVITATION CONTEMPLATED THAT THE ANNOUNCEMENT OF THE HIGH BIDDER WAS INTENDED TO CONSTITUTE AN AWARD SUBJECT TO THE EXCEPTION THAT FOR SOME REASON THE BIDDER WAS NOT ELIGIBLE TO PURCHASE THE PROPERTY, THERE BEING NOTHING ELSE TO DETERMINE BUT WHO WAS THE HIGH BIDDER AND THAT THE AMOUNT BID REPRESENTED A REASONABLE PRICE FOR THE ITEM.

IT WOULD APPEAR THAT THE VERY PURPOSE OF THIS TYPE OF SALE, ITEM BY ITEM, WAS TO LET BIDDERS KNOW THE OUTCOME OF THEIR BIDS ON THE VARIOUS ITEMS IMMEDIATELY IN ORDER THAT THEY WOULD KNOW WHAT TO DO ABOUT SUBSEQUENT ITEMS THAT THEY MIGHT THEN BE INTERESTED IN. THE WHOLE TENOR OF THE ANNOUNCEMENT SEEMS TO CONTEMPLATE THAT, ONCE THE ANNOUNCEMENT OF THE HIGH BIDDER HAD BEEN MADE ON A PARTICULAR ITEM, AS PROVIDED BY ARTICLE E, AND THE SALE HAD PROGRESSED ON TO THE NEXT ITEM, AN AWARD OF A PRIOR ITEM COULD NOT THEN BE MADE TO ANOTHER BIDDER.

WITH RESPECT TO THE BIDS OF NATIONAL METAL AND STEEL CORPORATION, IT APPEARS CLEAR THAT THEY WERE MAILED IN AMPLE TIME AND UNDER NORMAL CIRCUMSTANCES SHOULD HAVE BEEN RECEIVED IN TIME TO BE CONSIDERED. IT MAY BE THAT THE DISPOSAL OFFICERS WERE LESS THAN REASONABLY DILIGENT TO SEE THAT BIDS SO SENT AND RECEIVED IN PLENTY OF TIME AT THE POST OFFICE AT LATHROP WERE PICKED UP AND DELIVERED TO THE PROPERTY DISPOSAL OFFICER SO THAT THEY MIGHT BE CONSIDERED, BUT THE TERMS OF THE ANNOUNCEMENT MUST, IN THE ABSENCE OF ANY PROVISION SAVING THE RIGHTS OF BIDDERS WHOSE BIDS WERE RECEIVED LATE BY REASON OF DELAYS IN TRANSIT, BE CONSTRUED AS PRECLUDING CONSIDERATION OF BIDS NOT ACTUALLY RECEIVED AT THE PLACE OF SALE.

YOU ARE THEREFORE ADVISED THAT THE BIDS OF NATIONAL METAL AND STEEL CORPORATION PROPERLY MAY NOT BE OPENED AND CONSIDERED FOR AWARD, AND THAT SUNDFELT EQUIPMENT COMPANY, INC., IS ENTITLED TO DELIVERY OF THE TWO ITEMS UPON PAYMENT THEREFOR, UNLESS IT IS DETERMINED THAT THE COMPANY WAS NOT ELIGIBLE TO PURCHASE THE EQUIPMENT.