B-139074, APR 2, 1959

B-139074: Apr 2, 1959

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DEPARTMENT OF THE INTERIOR: REFERENCE IS MADE TO YOUR LETTER DATED MARCH 17. THE BUREAU WAS ADVISED IN THE LETTER THAT IN ORDER TO MINIMIZE DELAY IN SHIPMENT ARVA WAS FORWARDING TO THE CORPORATION ITS "ADVANCE PURCHASE ORDER NOTICE" DATED MAY 16. AN INVOICE WAS ISSUED ON MAY 19. THE PURCHASE ORDER WAS ACKNOWLEDGED AND ACCEPTED BY THE CORPORATION ON MAY 27. IT WOULD APPEAR THAT THE FIRST ACTUAL INTENDED ACCEPTANCE OF THE PURCHASE ORDER WAS THE INVOICE ON MAY 19. IN ANY EVENT IT IS CLEAR THAT THERE APPEARED ON THE FACE OF THE INTENDED ACCEPTANCE OF THE BALDWIN LIMA-HAMILTON CORPORATION SUCH AN OBVIOUS DISCREPANCY IN THE PRICE FOR ITEM NO. 8 AS TO HAVE REQUIRED THE CONTRACTING OFFICER TO QUESTION THE CORRECTNESS THEREOF BEFORE ACCEPTING DELIVERY OF THE ROOM TEMPERATURE KIT.

B-139074, APR 2, 1959

PRECIS-UNAVAILABLE

W. RULON LEE, DEPARTMENT OF THE INTERIOR:

REFERENCE IS MADE TO YOUR LETTER DATED MARCH 17, 1959, WITH ENCLOSURES, REQUESTING OUR DECISION AS TO THE PROPRIETY OF PAYMENT OF A VOUCHER FOR $30 IN FAVOR OF THE BALDWIN-LIMA-HAMILTON CORPORATION, UNDER PURCHASE ORDER NO. SPO-234.

ON MAY 15, 1958, THE BUREAU OF MINES, SPOKANE, WASHINGTON, ISSUED PURCHASE ORDER NO. SPO-234, TO ARVA, THE AREA REPRESENTATIVE FOR THE BALDWIN-LIMA-HAMILTON CORPORATION FOR, AMONG OTHERS, ITEM NO. 8, COVERING ONE ROOM TEMPERATURE KIT FOR $40. BY LETTER DATED MAY 16, 1958, ARVA RETURNED THE PURCHASE ORDER FOR THE BUREAU OF MINES TO SHOW THE SELLER THEREON AS THE BALDWIN-LIMA-HAMILTON CORPORATION INSTEAD OF ARVA. THE BUREAU WAS ADVISED IN THE LETTER THAT IN ORDER TO MINIMIZE DELAY IN SHIPMENT ARVA WAS FORWARDING TO THE CORPORATION ITS "ADVANCE PURCHASE ORDER NOTICE" DATED MAY 16, 1958, AND ENCLOSED A COPY THEREOF. AN INVOICE WAS ISSUED ON MAY 19, 1958, BY THE BALDWIN-LIMA HAMILTON CORPORATION SHOWING THE PRICE OF THE ROOM TEMPERATURE KIT AS $70. THE PURCHASE ORDER WAS ACKNOWLEDGED AND ACCEPTED BY THE CORPORATION ON MAY 27, 1958, WITHOUT COMMENT AS TO THE ORIGINAL $40 PRICE FOR ITEM NO. 8 SHOWN THEREON. THE PROPRIETY OF PAYMENT OF THE VOUCHER FOR $30 ARISES BY REASON OF THE PAYMENT OF ONLY $40 ON THE INVOICED AMOUNT OF $70 FOR ITEM NO. 8.

NOTWITHSTANDING ARVA'S LETTER OF MAY 16, 1958, AND THE ISSUANCE OF THE "ADVANCE PURCHASE ORDER NOTICE" TO THE CORPORATION, IT WOULD APPEAR THAT THE FIRST ACTUAL INTENDED ACCEPTANCE OF THE PURCHASE ORDER WAS THE INVOICE ON MAY 19, 1958, OF THE BALDWIN-LIMA-HAMILTON CORPORATION. THE INVOICE CONTAINED THE STATEMENT THAT "THIS COPY CONSTITUTES ACCEPTANCE OF YOUR NOTED PURCHASE ORDER IN ACCORDANCE WITH THE PROVISIONS HEREOF." HOWEVER, THE INVOICE ALSO SET FORTH A PRICE OF $70 INSTEAD OF $40 FOR ITEM NO. 8. IT WOULD THEREFORE SEEM THAT THE INVOICE CONSTITUTED NOTHING MORE THAN PERHAPS A COUNTER-OFFER TO FURNISH THE ROOM TEMPERATURE KIT FOR A PRICE OF $70. IN ANY EVENT IT IS CLEAR THAT THERE APPEARED ON THE FACE OF THE INTENDED ACCEPTANCE OF THE BALDWIN LIMA-HAMILTON CORPORATION SUCH AN OBVIOUS DISCREPANCY IN THE PRICE FOR ITEM NO. 8 AS TO HAVE REQUIRED THE CONTRACTING OFFICER TO QUESTION THE CORRECTNESS THEREOF BEFORE ACCEPTING DELIVERY OF THE ROOM TEMPERATURE KIT. UNDER THE CIRCUMSTANCES, THE SUBSEQUENT ACCEPTANCE, ON MAY 27, 1958, BY THE CORPORATION OF THE PURCHASE ORDER IN THE ORIGINAL AMOUNT OF $40 FOR ITEM NO. 8, SHOULD HAVE NO BEARING ON THIS CONCLUSION.

IN VIEW OF THE FOREGOING, AND SINCE THE INTER-OFFICE MEMORANDUM DATED APRIL 23, 1957, OF THE BALDWIN-LIMA-HAMILTON CORPORATION CLEARLY SHOWS THAT THE PRICE FOR ITEM NO. 8 WAS INCREASED TO $70 AS OF THAT DATE, OUR OFFICE WILL NOT OBJECT TO PAYMENT OF THE SUBJECT VOUCHER IN THE AMOUNT OF $30.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER COVERING PAYMENT.

THE PAPERS ARE RETURNED HEREWITH.