B-132841, AUG. 13, 1957

B-132841: Aug 13, 1957

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TO WESTERN INSULATED WIRE COMPANY: REFERENCE IS MADE TO YOUR LETTER OF JULY 23. THAT THE COMPANY USED THE PRICE OF THE ONE CONDUCTOR WIRE IN THE COMPUTATION OF ITS BID ON WHICH THE ABOVE REFERRED-TO CONTRACT IS BASED. IT APPEARS FROM YOUR LETTER THAT THE REFERRED-TO CONTRACT WAS ENTERED INTO BETWEEN THE GOVERNMENT AND THE GENERAL ELECTRIC SUPPLY COMPANY. YOUR POSITION APPEARS TO HAVE BEEN THAT OF A SUPPLIER TO THE CONTRACTOR. SINCE YOU ARE NOT A PARTY TO THE CONTRACT. THE FACT THAT YOU HAVE FURNISHED. IT IS WELL SETTLED THAT CONTRACTS OR AGREEMENTS TO FURNISH SUPPLIES TO PRIME CONTRACTORS ENGAGED IN THE PERFORMANCE OF CONTRACTS WITH THE GOVERNMENT ORDINARILY DO NOT RESULT IN PRIVITY OF CONTRACT BETWEEN THE SUBCONTRACTORS AND THE UNITED STATES.

B-132841, AUG. 13, 1957

TO WESTERN INSULATED WIRE COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF JULY 23, 1957, WHEREIN YOU REQUEST AN INCREASE IN THE CONTRACT PRICE OF 31,500 FEET OF SIZE 18--- TWO CONDUCTOR RUBBER INSULATED LEAD COVERED WIRE FURNISHED, OR TO BE FURNISHED, BY THE GENERAL ELECTRIC SUPPLY COMPANY, ALBANY, GEORGIA, TO THE WARNER ROBINS AIR FORCE BASE, GEORGIA, UNDER PURCHASE ORDER NO. (09-603/57-7979. IN YOUR LETTER YOU STATE THAT YOU ERRONEOUSLY QUOTED THE GENERAL ELECTRIC SUPPLY COMPANY THE PRICE OF ONE CONDUCTOR RUBBER INSULATED LEAD COVERED WIRE; INSTEAD OF TWO CONDUCTOR RUBBER INSULATED LEAD COVERED WIRE; AND THAT THE COMPANY USED THE PRICE OF THE ONE CONDUCTOR WIRE IN THE COMPUTATION OF ITS BID ON WHICH THE ABOVE REFERRED-TO CONTRACT IS BASED.

IT APPEARS FROM YOUR LETTER THAT THE REFERRED-TO CONTRACT WAS ENTERED INTO BETWEEN THE GOVERNMENT AND THE GENERAL ELECTRIC SUPPLY COMPANY. YOUR POSITION APPEARS TO HAVE BEEN THAT OF A SUPPLIER TO THE CONTRACTOR. SINCE YOU ARE NOT A PARTY TO THE CONTRACT, THE FACT THAT YOU HAVE FURNISHED, OR INTEND TO FURNISH, THE WIRE TO THE CONTRACTOR GIVES YOU NO RIGHTS THEREUNDER. IT IS WELL SETTLED THAT CONTRACTS OR AGREEMENTS TO FURNISH SUPPLIES TO PRIME CONTRACTORS ENGAGED IN THE PERFORMANCE OF CONTRACTS WITH THE GOVERNMENT ORDINARILY DO NOT RESULT IN PRIVITY OF CONTRACT BETWEEN THE SUBCONTRACTORS AND THE UNITED STATES. IN CONNECTION THEREWITH SEE H. HERFURTH, JR., INC. V. UNITED STATES, 89 C.CLS. 122; JOSEPH PETRIN, ET AL. V. UNITED STATES, 50 ID. 670; UNITED STATES V. DRISCOLL, 96 U.S. 421; AND MERRITT V. UNITED STATES, 267 ID. 338. THEREFORE, THERE BEING NO PRIVITY OF CONTRACT BETWEEN YOU AND THE GOVERNMENT, THERE APPEARS NO BASIS ON WHICH YOUR REQUEST FOR AN INCREASE IN THE CONTRACT PRICE OF THE WIRE COULD BE PROPERLY CONSIDERED.