B-141086, NOV. 16, 1959

B-141086: Nov 16, 1959

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THERE WAS FORWARDED TO OUR OFFICE YOUR LETTER DATED JULY 6. AWARDS WERE MADE TO SEVEN CONCERNS UNDER ITEM NO. 52 OF THE INVITATION. 729 UNITS OF ITEM NO. 52 WERE ON HAND AS OF THE TIME OF ISSUING INVITATION NO. 11-019-S-59-35 AND THE PROPERTY DISPOSAL OFFICER HAS STATED THAT PREVIOUS BUSINESS RELATIONS WITH THE BURDEN SALES COMPANY HAVE NEVER CAUSED HIS OFFICE TO QUESTION THE INTEGRITY OF THAT CONCERN. THE PROPOSED REFUND OF $141.86 IS COMPUTED ON THE BASIS OF CONSIDERING THE SHORTAGE IN DELIVERY AS BEING APPLICABLE TO THE LOWEST OF THE COMPANY'S ACCEPTED BID PRICES ON ITEM NO. 52 (500 EACH AT $0.171. SINCE EACH OF THE SEVERAL AWARDS OF ITEM NO. 52 WAS MADE ON A UNIT PRICE BASIS. YOU ARE ADVISED THAT PAYMENT OF THE VOUCHER IN THAT AMOUNT IS AUTHORIZED.

B-141086, NOV. 16, 1959

TO MAJOR P. R. BLACKEY, FC., U.S. ARMY, FINANCE AND ACCOUNTING OFFICER, DEPARTMENT OF THE ARMY:

BY LETTER DATED OCTOBER 23, 1959, FROM THE OFFICE OF THE CHIEF OF FINANCE, FIELD DIVISION, INDIANAPOLIS, INDIANA, THERE WAS FORWARDED TO OUR OFFICE YOUR LETTER DATED JULY 6, 1959, WITH ENCLOSURES, REQUESTING AN ADVANCE DECISION AS TO THE PROPRIETY OF MAKING PAYMENT ON A VOUCHER IN THE AMOUNT OF $141.86, COVERING A CLAIM OF BURDEN SALES COMPANY, LINCOLN, NEBRASKA, FOR REFUND OF PORTION OF ITS BID PRICE ON 17,229 OF THE 26,729 GENERATORS OFFERED FOR SALE UNDER ITEM NO. 52 OF INVITATION FOR BIDS NO. 11-019-S-59-35, ISSUED BY THE PROPERTY DISPOSAL OFFICE, DECATUR SIGNAL DEPOT.

AWARDS WERE MADE TO SEVEN CONCERNS UNDER ITEM NO. 52 OF THE INVITATION, AND THE NOTICE OF AWARD, DATED MARCH 17, 1959, TO THE BURDEN SALES COMPANY, SHOWS SALE PRICES OF $0.521, $0.411, $0.321, $0.221 AND $0.171 EACH FOR QUANTITIES OF 2,000, 2,000, 5,000 7,729 AND 500 GENERATORS, RESPECTIVELY. THE COMPANY PAID THE TOTAL SALE PRICE OF $5,262.61, AS REQUESTED, BUT SUBSEQUENTLY REPORTED THAT THERE HAD BEEN A SHORTAGE IN DELIVERY OF 755 UNITS.

THE RECORD INDICATES A CONSIDERABLE DOUBT AS TO WHETHER A TOTAL OF 26,729 UNITS OF ITEM NO. 52 WERE ON HAND AS OF THE TIME OF ISSUING INVITATION NO. 11-019-S-59-35 AND THE PROPERTY DISPOSAL OFFICER HAS STATED THAT PREVIOUS BUSINESS RELATIONS WITH THE BURDEN SALES COMPANY HAVE NEVER CAUSED HIS OFFICE TO QUESTION THE INTEGRITY OF THAT CONCERN. THE PROPOSED REFUND OF $141.86 IS COMPUTED ON THE BASIS OF CONSIDERING THE SHORTAGE IN DELIVERY AS BEING APPLICABLE TO THE LOWEST OF THE COMPANY'S ACCEPTED BID PRICES ON ITEM NO. 52 (500 EACH AT $0.171, TOTALING $85.50, PLUS 255 EACH AT $0.221, TOTALING $56.36).

SINCE EACH OF THE SEVERAL AWARDS OF ITEM NO. 52 WAS MADE ON A UNIT PRICE BASIS, AND NOT ON A LOT PRICE BASIS, THE BURDEN SALES COMPANY APPEARS TO BE ENTITLED TO A REFUND OF THE AMOUNT OF $141.86 PURSUANT TO THE PROVISIONS OF PARAGRAPH 8 OF THE GENERAL SALE TERMS AND CONDITIONS OF THE CONTRACT. ACCORDINGLY, YOU ARE ADVISED THAT PAYMENT OF THE VOUCHER IN THAT AMOUNT IS AUTHORIZED.

IN REGARD TO THE ADDITIONAL QUESTIONS PRESENTED IN YOUR LETTER, THE PROPERTY DISPOSAL OFFICER SUBMITTED A TRANSFER DOCUMENT WHICH INDICATES THAT THE ORIGINAL QUANTITY OF GENERATORS OF THE TYPE DESCRIBED IN ITEM NO. 52 OF THE INVITATION WAS DETERMINED TO BE 25,851 UNITS. THE STATED QUANTITY WAS CHANGED TO 26,729 UNITS AND IT HAS BEEN EXPLAINED THAT AN EMPLOYEE IN THE STORAGE DIVISION HAD INDICATED ON AN INVENTORY AND ADJUSTMENT SHEET THAT AN OVERAGE OF 878 UNITS EXISTED. THE PROPERTY DISPOSAL OFFICER FURTHER EXPLAINED THAT THE INVENTORY AND ADJUSTMENT SHEET WAS PROCESSED WITHOUT FURTHER COUNT, AND IMPLIED THAT IT WAS PROBABLE THAT THE STORAGE EMPLOYEE DID NOT MAKE A COMPLETE COUNT OF THE GENERATORS BUT RELIED UPON THE UNIT COUNTS MARKED ON UNOPENED WOODEN BOXES, CONTAINING APPROXIMATELY 35 UNITS EACH, AND ON BOX PALLETS, EACH OF WHICH CONTAINED LOOSE QUANTITIES OF FROM 500 TO 600 GENERATORS.

IN THE CIRCUMSTANCES, IT IS OUR VIEW THAT THE AVAILABLE EVIDENCE IS NOT SUFFICIENT TO SUBSTANTIATE A CLAIM AGAINST EITHER THE CARRIER OR THE PROPERTY DISPOSAL OFFICER FOR THE SHORTAGE IN THE DELIVERY MADE TO THE BURDEN SALES COMPANY.