B-140886, OCT. 14, 1959

B-140886: Oct 14, 1959

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FEDERAL HOUSING ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER DATED SEPTEMBER 29. THE CONTRACTING OFFICER VERBALLY ADVISED THE DIRECTOR THAT THERE WAS A GENERAL SERVICES ADMINISTRATION MANDATORY CONTRACT AVAILABLE FOR THE DESIGN AND CONSTRUCTION OF EXHIBITS AND CASES AND THAT SINCE THE COMPANY WAS NOT A PARTY TO THE CONTRACT. THE FHADID NOT HAVE THE AUTHORITY TO ISSUE A FORMAL PURCHASE ORDER TO PURCHASE THE EXHIBITS FROM GENERAL EXHIBITS AND DISPLAYS. IT APPEARS THAT DUE TO A MISUNDERSTANDING THE COMPANY HAD STARTED THE WORK WITHOUT PRIOR AUTHORIZATION FROM THE CONTRACTING OFFICER AND THAT THE WORK WAS APPROXIMATELY 80 PERCENT COMPLETE WHEN THEY WERE ADVISED OF THE GENERAL SERVICES ADMINISTRATION CONTRACT.

B-140886, OCT. 14, 1959

TO MR. LESTER H. THOMPSON, AUTHORIZED CERTIFYING OFFICER, FEDERAL HOUSING ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER DATED SEPTEMBER 29, 1959, WITH ENCLOSURE, YOUR FILE FB:HS, REQUESTING A DECISION AS TO WHETHER THERE MAY BE CERTIFIED FOR PAYMENT BUREAU VOUCHER NO. 11650, IN THE AMOUNT OF $2,330, STATED IN FAVOR OF GENERAL EXHIBITS AND DISPLAYS, INC., FOR THE COST OF DESIGNING AND BUILDING TWO PORTABLE EXHIBITS AND TRAVELING CASES.

BY MEMORANDUM DATED APRIL 22, 1959, THE FHA DIRECTOR OF PUBLIC INFORMATION REQUESTED THE FHA CONTRACTING OFFICER TO ARRANGE FOR DESIGN AND CONSTRUCTION OF THE EXHIBITS AND TRAVELING CASES, IN ACCORDANCE WITH SPECIFICATIONS SUBMITTED BY GENERAL EXHIBITS AND DISPLAYS, INC. SUBSEQUENTLY, THE CONTRACTING OFFICER VERBALLY ADVISED THE DIRECTOR THAT THERE WAS A GENERAL SERVICES ADMINISTRATION MANDATORY CONTRACT AVAILABLE FOR THE DESIGN AND CONSTRUCTION OF EXHIBITS AND CASES AND THAT SINCE THE COMPANY WAS NOT A PARTY TO THE CONTRACT, THE FHADID NOT HAVE THE AUTHORITY TO ISSUE A FORMAL PURCHASE ORDER TO PURCHASE THE EXHIBITS FROM GENERAL EXHIBITS AND DISPLAYS, INC. IT APPEARS THAT DUE TO A MISUNDERSTANDING THE COMPANY HAD STARTED THE WORK WITHOUT PRIOR AUTHORIZATION FROM THE CONTRACTING OFFICER AND THAT THE WORK WAS APPROXIMATELY 80 PERCENT COMPLETE WHEN THEY WERE ADVISED OF THE GENERAL SERVICES ADMINISTRATION CONTRACT. ON JUNE 2, 1959, THE CONTRACTING OFFICER ADVISED THE COMPANY IN WRITING THAT HE COULD NOT PLACE A FORMAL ORDER FOR THE EXHIBITS BUT IF THE COMPANY WISHED TO COMPLETE THE WORK THEN THE FHA WOULD ACCEPT A CLAIM FOR THE COST AND SUBMIT IT HERE FOR A DECISION AS TO WHETHER IT MIGHT BE CERTIFIED FOR PAYMENT.

THE COMPANY HAS INVOICED THE MATERIAL USED AT THE COST OF SUCH MATERIAL TO IT. IN CONNECTION WITH THE BILLING FOR LABOR, THE FHA DIRECTOR, GENERAL SERVICES DIVISION, STATED THAT "THESE RATES COMPARE QUITE FAVORABLE WITH THE CONTRACT RATES. IN FACT, THEY ARE CONSIDERABLY LESS THAN THE HOURLY RATES OF THOSE FIRMS ON THE CONTRACT WHICH ARE KNOWN TO THIS OFFICE TO BE QUALIFIED TO PERFORM WORK EQUAL IN QUALITY TO THAT REPRESENTED IN THE TWO EXHIBITS COVERED BY THE INVOICE. THE TOTAL COST OF THE EXHIBITS IS THEREFORE BELIEVED TO BE FAIR AND REASONABLE.'

IT APPEARS THAT THE EXHIBITS HAVE BEEN EXAMINED AND APPROVED BY FHA ADMINISTRATIVE OFFICIALS AND ARE NOW IN USE.

THE VOUCHER AND ACCOMPANYING PAPERS ARE RETURNED, AND YOU ARE ADVISED THAT IN THE CIRCUMSTANCES THE VOUCHER MAY BE CERTIFIED FOR PAYMENT IN THE AMOUNT OF $2,330, IF OTHERWISE CORRECT.