B-140501, AUG. 24, 1959

B-140501: Aug 24, 1959

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AUTHORIZED CERTIFYING OFFICER: REFERENCE IS MADE TO YOUR LETTER OF AUGUST 14. POINT SPECIFIED IN THE PURCHASE ORDER WAS HARRISBURG. THE CYLINDERS WERE TO BE SHIPPED TO MORGANTOWN. THE SUPPLIER WAS REQUESTED TO BILL THE SHIPPING CHARGES AS A SEPARATE ITEM ON THE INVOICE. APPARENTLY CHROME MOLYBDENUM ALLOY CYLINDERS WERE NOT IN STOCK AT THE HARRISBURG MILL AND HAD TO BE OBTAINED FROMEASTON. THE CYLINDERS WERE NOT EQUIPPED WITH CGA NO. 580 VALVES AND IT WAS NECESSARY TO SHIP THE CYLINDERS FROM EASTON TO MCKEES ROCKS. TRANSPORTATION CHARGES WERE INVOICED AT $98 FOR THE TRANSPORTATION FROM EASTON TO MCKEES ROCKS AND AT $63.70 FOR THE TRANSPORTATION FROM MCKEES ROCKS TO MORGANTOWN. THE INVOICE WAS ALLOWED IN THE AMOUNT OF $86.36.

B-140501, AUG. 24, 1959

TO MR. W. F. OWEN, JR., AUTHORIZED CERTIFYING OFFICER:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 14, 1959, IN WHICH YOU REQUESTED AN OPINION AS TO THE PROPRIETY OF YOUR CERTIFYING FOR PAYMENT A CLAIM FOR $63.70 FROM JOHNSON WELDER'S SUPPLY, MORGANTOWN, WEST VIRGINIA. THE CLAIM ARISES OUT OF THE PURCHASE BY THE BUREAU, UNDER PURCHASE ORDER NO. MCR-1054-59, OF 50 CHROME MOLYBDENUM ALLOY OXYGEN TYPE CYLINDERS VALVED FOR CGA NO. 580 VALUE (HELIUM SERVICE).

THE F.O.B. POINT SPECIFIED IN THE PURCHASE ORDER WAS HARRISBURG, PENNSYLVANIA, THE CYLINDERS WERE TO BE SHIPPED TO MORGANTOWN, AND THE SUPPLIER WAS REQUESTED TO BILL THE SHIPPING CHARGES AS A SEPARATE ITEM ON THE INVOICE. APPARENTLY CHROME MOLYBDENUM ALLOY CYLINDERS WERE NOT IN STOCK AT THE HARRISBURG MILL AND HAD TO BE OBTAINED FROMEASTON, PENNSYLVANIA. SEE THE PAID FREIGHT BILL OF MODERN TRANSFER COMPANY. THE CYLINDERS WERE NOT EQUIPPED WITH CGA NO. 580 VALVES AND IT WAS NECESSARY TO SHIP THE CYLINDERS FROM EASTON TO MCKEES ROCKS, PENNSYLVANIA, FOR INSTALLATION THERE OF THE NECESSARY VALVES. AS A RESULT, TRANSPORTATION CHARGES WERE INVOICED AT $98 FOR THE TRANSPORTATION FROM EASTON TO MCKEES ROCKS AND AT $63.70 FOR THE TRANSPORTATION FROM MCKEES ROCKS TO MORGANTOWN. THE INVOICE WAS ALLOWED IN THE AMOUNT OF $86.36, COMPUTED ON THE BASIS OF A MOTOR CARRIER RATE FROM HARRISBURG (THE F.O.B. POINT SPECIFIED IN THE PURCHASE ORDER) TO MORGANTOWN AND THE BALANCE OF THE TRANSPORTATION CHARGES CLAIMED WAS DISALLOWED.

ORDINARILY, THE ALLOWABLE FREIGHT ON AN ORDER OF THIS KIND WOULD BE THAT FROM F.O.B. POINT TO DESTINATION. HOWEVER, WE NOT THAT THE SUPPLIER'S UNDATED QUOTATION, RECEIVED IN THE BUREAU JANUARY 23, 1959, OFFERED TO SUPPLY TWO ITEMS. THE FIRST ITEM IS DESCRIBED AS "OXYGEN TYPE CYLINDERS TO BE USED FOR HELIUM SERVICE WITH 580 CGA VALVES; " THE PRICE QUOTED IS $47.50 PER UNIT AND INCLUDED CAPS AND VALVES. THE SECOND ITEM IS DESCRIBED AS "OXYGEN TYPE CYLINDERS NEW LIGHT WEIGHT CHROME MOLYBDENUM ALLOY, 244 CU. FT. CAPACITY," AND THE PRICE QUOTED IS $49.50 PER UNIT. THERE IS NO INDICATION THAT THE CYLINDERS DESCRIBED IN THE SECOND ITEM ARE EQUIPPED WITH 580 CGA VALVES OR ARE CAPABLE OF USE IN HELIUM SERVICE. THE PURCHASE ORDER, HOWEVER, REQUESTS THAT THE LATTER-TYPE CYLINDERS BE FURNISHED BUT SPECIFIES THAT THEY BE VALVED "FOR CGA NO. 580 VALVE (HELIUM SERVICE).' IT IS APPARENT, THEREFORE, THAT THE CYLINDERS ORDERED ARE DIFFERENT FROM EITHER OF THE TYPES DESCRIBED IN THE QUOTATION.

THE RECORD REFLECTS A MISUNDERSTANDING ON THE PART OF THE PARTIES AS TO THE CONDITIONS OF THE CONTRACT MADE. THE SUPPLIER WAS THE ONLY ONE OF SIX COMPANIES CONTACTED THAT SUBMITTED A QUOTATION. ORDINARILY, HE SHOULD HAVE ASCERTAINED IN ADVANCE SPECIFICALLY WHETHER HE WAS AUTHORIZED TO INCUR THE ADDITIONAL EXPENSE NECESSARY TO FURNISH CYLINDERS EQUIPPED WITH VALVES OF THE KIND SPECIFIED IN THE PURCHASE ORDER, BUT THERE APPEARS TO HAVE BEEN SOME URGENCY IN THE ARRANGEMENTS MADE FOR PROCURING THE CYLINDERS. IN THE CIRCUMSTANCES OF THIS CASE PAYMENT OF AN ADDITIONAL NOMINAL AMOUNT OF TRANSPORTATION CHARGES IS JUSTIFIED, COMPUTED ON A CONSTRUCTIVE BASIS FROM HARRISBURG TO MCKEES ROCKS AND FROM MCKEES ROCKS TO MORGANTOWN. SINCE THE SUPPLIER REPRESENTED THAT HE COULD FURNISH CHROME NIOLYBDENUM ALLOY CYLINDERS AT HARRISBURG, WE THINK THE ADDITIONAL EXPENSE INCURRED BECAUSE THE CYLINDERS HAD TO BE OBTAINED FROM EASTON SHOULD NOT BE BORNE BY THE GOVERNMENT.

MOTOR FREIGHT EXPRESS, IN ITS TARIFF BEARING PENNSYLVANIA P.U.C.NO. 42, MAINTAINS A RATE OF $1.37 PER 100 POUNDS, APPLICABLE OF THIS COMMODITY FROM HARRISBURG TO MCKEES ROCKS. MIDDLE ATLANTIC CONFERENCE TARIFF NO. 5- F PUBLISHES A RATE OF 93 CENTS PER 100 POUNDS, APPLICABLE ON THIS COMMODITY FROM MCKEES ROCKS TO MORGANTOWN. BASED ON THESE RATES THE CONSTRUCTIVE CHARGES FROM HARRISBURG TO MCKEES ROCKS ARE $83.91 AND THOSE FROM MCKEES ROCKS TO MORGANTOWN ARE $56.96, OR A TOTAL OF $140.87. THE SUPPLIER HAS BEEN ALLOWED $86.36 AND PAYMENT OF THE BALANCE OF $54.51 IS AUTHORIZED. THE PAPERS ACCOMPANYING YOUR LETTER ARE RETURNED HEREWITH.