B-132733, SEP. 13, 1957

B-132733: Sep 13, 1957

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ESQUIRES: FURTHER REFERENCE IS MADE TO YOUR LETTER OF JULY 27. THE PROTEST IS BASED UPON THE CONTENTION THAT PROPERTY AND FACILITIES HAVE BEEN LEASED TO MR. THAT YOUR CLIENT IS WILLING AND HAS AUTHORIZED YOU TO MAKE AN OFFER TO LEASE THE PROPERTY IN QUESTION FROM THE GOVERNMENT AT AN ANNUAL RENTAL OF $35. IT IS STATED THAT THE SHIPYARD FACILITY AT TAMPA. SINCE EFFORTS TO RENT THE ENTIRE SHIPYARD HAVE BEEN UNSUCCESSFUL. ONE SUCH LEASE WAS ENTERED INTO WITH TAMPA SHIP REPAIR AND DRYDOCK COMPANY. IS REQUIRED TO PERFORM LONG-TERM MAINTENANCE. IN THE REPORT IT IS FURTHER STATED: "IN ORDER TO OBTAIN ONE LESSEE TO ASSUME THE RESPONSIBILITIES FOR THE ENTIRE YARD AND THUS RELIEVE THE GOVERNMENT OF CONSIDERABLE EXPENSE.

B-132733, SEP. 13, 1957

TO WACHTEL, WIENER AND ROSS, ESQUIRES:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF JULY 27, 1957, WITH ENCLOSURE, PROTESTING ON BEHALF OF BOBBY BENJAMIN, INC., MIAMI, FLORIDA, A PROPOSED LEASE OR DISPOSAL OF GOVERNMENT PROPERTY AT THE NAVAL INDUSTRIAL RESERVE SHIPYARD, TAMPA, FLORIDA.

THE PROTEST IS BASED UPON THE CONTENTION THAT PROPERTY AND FACILITIES HAVE BEEN LEASED TO MR. SAMUEL DAVIS WHO PLANS TO LEASE A PORTION THEREOF TO SPARKMAN TERMINAL COMPANY AT AN ANNUAL RENTAL OF $23,500, WITHOUT AFFORDING OTHER INTERESTED PARTIES AN OPPORTUNITY TO BID OR NEGOTIATE, AND THAT YOUR CLIENT IS WILLING AND HAS AUTHORIZED YOU TO MAKE AN OFFER TO LEASE THE PROPERTY IN QUESTION FROM THE GOVERNMENT AT AN ANNUAL RENTAL OF $35,000.

IN A REPORT OF THE ASSISTANT SECRETARY OF THE NAVY (MATERIAL), DATED SEPTEMBER 5, 1957, IT IS STATED THAT THE SHIPYARD FACILITY AT TAMPA, FLORIDA, HAS BEEN IDLE SINCE 1949 AND, SINCE EFFORTS TO RENT THE ENTIRE SHIPYARD HAVE BEEN UNSUCCESSFUL, THE DEPARTMENT HAS ENTERED INTO LEASES OF VARIOUS PORTIONS THEREOF UNDER THE AUTHORITY OF SECTION 2667 OF TITLE 10 OF THE UNITED STATES CODE. ONE SUCH LEASE WAS ENTERED INTO WITH TAMPA SHIP REPAIR AND DRYDOCK COMPANY, INC., MR. SAM F. DAVIS, PRESIDENT. THE LEASE PROVIDES FOR A TERM OF SIX MONTHS WITH RIGHT OF RENEWAL FOR NINE ADDITIONAL PERIODS OF SIX MONTHS UPON TERMS TO BE AGREED ON. UNDER THE LEASE THE LESSEE ASSUMES THE OBLIGATION OF PROTECTING, PRESERVING AND MAINTAINING THE LEASED PORTION AT HIS OWN COST AND EXPENSE, AND IS REQUIRED TO PERFORM LONG-TERM MAINTENANCE, AS DEFINED IN THE LEASE, AT A STIPULATED MAXIMUM COST, TO PAY ITS PRO-RATA SHARE FOR YARD SECURITY, TO CARRY LIABILITY AND PROPERTY DAMAGE INSURANCE, AND TO FURNISH A PERFORMANCE BOND. THE LESSEE MAY NOT TRANSFER OR ASSIGN ANY INTEREST IN THE LEASE TO ANY THIRD PARTY WITHOUT THE PRIOR WRITTEN CONSENT OF THE DEPARTMENT OF THE NAVY. IN THE REPORT IT IS FURTHER STATED:

"IN ORDER TO OBTAIN ONE LESSEE TO ASSUME THE RESPONSIBILITIES FOR THE ENTIRE YARD AND THUS RELIEVE THE GOVERNMENT OF CONSIDERABLE EXPENSE, THE DEPARTMENT RECENTLY ENTERTAINED A PROPOSAL FROM TAMPA FABRICATORS, INC. THE CONSIDERATION WAS TO BE $150,000 PER YEAR PLUS OTHER BENEFITS TO THE GOVERNMENT. HOWEVER, IT WAS DETERMINED THAT IT WOULD BE DESIRABLE AT THIS TIME TO READVERTISE THE AVAILABILITY OF THE YARD FOR LEASE, SUBJECT TO THE LEASES PRESENTLY IN EFFECT AND THE PROPOSAL WAS NOT ACCEPTED. IT IS EXPECTED THAT THE AVAILABILITY OF THE YARD WILL AGAIN BY ADVERTISED IN THE NEAR FUTURE AND BEFORE ANY ADDITIONAL AREAS ARE OUTLEASED.

"WITH REGARD TO MR. WACHTEL'S CONCERN THAT MR. SAM DAVIS PLANS TO LEASE A PORTION OF THE AREA ADJACENT TO BUILDING NO. 34 TO SPARKMAN TERMINAL COMPANY, THE DEPARTMENT HAS NOT CONSENTED TO ANY SUB-LEASE OF THIS PROPERTY TO THE SPARKMAN TERMINAL COMPANY. IN THE EVENT SUCH A REQUEST IS RECEIVED, THE DEPARTMENT WOULD NOT CONSENT TO A SUB-LEASE CALLING FOR A RENTAL GREATER THAN PAID BY THE PRIME LESSEE, BUT WOULD REQUIRE AN INCREASE EQUAL TO OR GREATER THAN THAT PAID BY A SUB LESSEE.'

ON THE FACTS PRESENTED, WE PERCEIVE NO PROPER BASIS FOR FURTHER QUESTIONING THE DEPARTMENT OF THE NAVY LEASING POLICIES AT THE NAVAL INDUSTRIAL SHIPYARD, TAMPA, FLORIDA, AT THIS TIME.