B-141473, MAR. 10, 1960

B-141473: Mar 10, 1960

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO AMERICAN NICKEL ALLOY MANUFACTURING CORP: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 25. RECEIPT IS ALSO ACKNOWLEDGED OF YOUR LETTER OF FEBRUARY 2. THE BASIS OF YOUR CLAIM FOR $215.87 IS THAT SINCE YOU HAD EXPRESSLY STIPULATED ON PAGE 4 OF YOUR BID THAT THE MATERIAL COVERED BY ITEM 8 MUST CONSIST OF INCONEL SCRAP. BOTH PARTS OF YOUR CLAIM WERE DISALLOWED FOR THE REASONS STATED IN THE STATEMENT. TO OBTAIN THE SERVICES OF ONE OF THE TRUCKING COMPANIES MENTIONED IN YOUR LETTER AND TO HAVE THE MATERIAL CONSIGNED TO "AMERICAN NICKEL ALLOY MANUFACTURING CORP. " THE LATTER PART OF WHICH IS THE ADDRESS OF YOUR PLANT. WHICH PROVIDES IN SUBSTANCE THAT "THE GOVERNMENT WILL NOT CRATE. IT IS NOTED ALSO THAT THE SAME ADDRESS APPEARS ON THE BILL OF LADING.

B-141473, MAR. 10, 1960

TO AMERICAN NICKEL ALLOY MANUFACTURING CORP:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 25, 1959, REQUESTING REVIEW OF SETTLEMENT DATED NOVEMBER 19, 1959, WHICH DISALLOWED THAT PART OF YOUR CLAIM FOR $215.87, ALLEGED TO BE DUE AS A PARTIAL REFUND OF THE AMOUNT PAID FOR A QUANTITY OF HIGH TEMPERATURE ALLOY SCRAP AND DISALLOWED THE OTHER PART OF YOUR CLAIM FOR $10.37, REPRESENTING TRANSPORTATION CHARGES PAID BY YOU FOR REROUTING THE SHIPMENT FROM YOUR OFFICE TO YOUR PLANT. RECEIPT IS ALSO ACKNOWLEDGED OF YOUR LETTER OF FEBRUARY 2, 1960, WITH ENCLOSURES.

UNDER THE TERMS OF THE CONTRACT YOU AGREED TO PURCHASE 1,455 POUNDS OF THE SCRAP METAL DESCRIBED UNDER ITEM 8 AT A PRICE OF $0.3212 PER POUND. AFTER RECEIVING THE SHIPMENT OF SCRAP METAL, YOU SUBMITTED A CLAIM TO OUR OFFICE FOR $226.24, $215.87 OF WHICH REPRESENTS THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND THE ALLEGED FAIR VALUE OF 696 POUNDS OF STAINLESS STEEL AND LOW NICKEL ALLOY SCRAP. THE BASIS OF YOUR CLAIM FOR $215.87 IS THAT SINCE YOU HAD EXPRESSLY STIPULATED ON PAGE 4 OF YOUR BID THAT THE MATERIAL COVERED BY ITEM 8 MUST CONSIST OF INCONEL SCRAP, YOU SHOULD NOT BE REQUIRED TO ACCEPT INFERIOR METAL SCRAP WITHOUT AN ADJUSTMENT IN THE CONTRACT PRICE THEREOF. THE OTHER PART OF YOUR CLAIM IN THE AMOUNT OF $10.37 REPRESENTS ADDITIONAL TRANSPORTATION CHARGES INCURRED BY YOU, WHICH, YOU STATE, RESULTED FROM INCORRECT SHIPPING INSTRUCTIONS ISSUED BY THE GOVERNMENT. BOTH PARTS OF YOUR CLAIM WERE DISALLOWED FOR THE REASONS STATED IN THE STATEMENT.

IN REGARD TO THAT PART OF YOUR CLAIM COVERING ADDITIONAL TRANSPORTATION CHARGES, THE RECORD INDICATES THAT AFTER AWARD, YOU REQUESTED THE CONTRACTING OFFICER AT THE O-HARE INTERNATIONAL AIRPORT, PARK RIDGE, ILLINOIS, TO OBTAIN THE SERVICES OF ONE OF THE TRUCKING COMPANIES MENTIONED IN YOUR LETTER AND TO HAVE THE MATERIAL CONSIGNED TO "AMERICAN NICKEL ALLOY MANUFACTURING CORP., 318 THIRD AVENUE, BROOKLYN, NEW YORK," THE LATTER PART OF WHICH IS THE ADDRESS OF YOUR PLANT.

IN A LETTER DATED MAY 19, 1958, TO THE CONTRACTING OFFICER, YOU REQUESTED THAT THE MATERIAL BE SHIPPED VIA MID-STATES FREIGHT LINES, INC. BY LETTER DATED MAY 27, 1958, THE CONTRACTING OFFICER ADVISED YOU THAT AS TO ARRANGING FOR THE SHIPMENT OF MATERIAL, YOU SHOULD REFER TO SUBPARAGRAPHS ,C" AND "C" OF PARAGRAPH 20 (PROVISIONS OF SALE) APPEARING ON PAGE 2-B OF INVITATION NO. 11-603-S-58-2, WHICH PROVIDES IN SUBSTANCE THAT "THE GOVERNMENT WILL NOT CRATE, PACK OR ARRANGE FOR SHIPMENT, OR NEGOTIATE WITH OTHERS FOR SUCH SERVICES FOR THE SUCCESSFUL BIDDERS.' THE RECORD SHOWS THAT BY LETTER DATED JUNE 2, 1958, YOU REQUESTED MID-STATES FREIGHT LINES, INC., TO PICK UP THE MATERIAL AT THE O-HARE INTERNATIONAL AIRPORT FOR YOU AND TO TRUCK IT TO 318 THIRD AVENUE, BROOKLYN, NEW YORK--- THE ADDRESS OF YOUR PLANT. IT IS NOTED ALSO THAT THE SAME ADDRESS APPEARS ON THE BILL OF LADING. IT IS APPARENT FROM THE FOREGOING THAT IT WAS NOT THE RESPONSIBILITY OF THE GOVERNMENT TO ARRANGE FOR THE SHIPMENT OR TO NEGOTIATE WITH OTHERS FOR SUCH SERVICES. MOREOVER, THE RECORD INDICATES THAT SHIPPING INSTRUCTIONS WERE ISSUED BY YOU TO THE CARRIER. HENCE, THERE APPEARS NO LEGAL BASIS FOR CONCLUDING THAT THE GOVERNMENT IS LIABLE FOR THE ALLEGED MISROUTING OF THE SHIPMENT. ACCORDINGLY, DISALLOWANCE OF THAT PART OF THE SETTLEMENT COVERING REIMBURSEMENT OF ADDITIONAL TRANSPORTATION CHARGES IS SUSTAINED.

IN CONNECTION WITH THAT PART OF YOUR CLAIM COVERING PARTIAL REFUND OF THE PURCHASE PRICE OF ITEM 8, SINCE THE RETAINED COPY OF YOUR BID SUBMITTED BY YOU SHOWS THE REFERRED-TO STIPULATION AND SINCE SUCH COPY IS SUPPORTED BY YOUR SWORN STATEMENT, WE ARE ACCEPTING SUCH DOCUMENT AS EVIDENCE THAT YOUR BID ON ITEM 8 WAS CONDITIONED ON THE MATERIAL BEING INCONEL SCRAP. ACCORDINGLY, SINCE YOUR OFFER OF $0.05 PER POUND IS ADMINISTRATIVELY REPORTED TO REPRESENT THE FAIR VALUE OF THE REJECTED MATERIAL AND IS, TOGETHER WITH THE PRICE PAID FOR THE ACCEPTED MATERIAL, IN EXCESS OF THE OTHER BIDS ON ITEM 8, YOU MAY BE ALLOWED TO RETAIN THE REJECTED MATERIAL AND INSTRUCTIONS ARE BEING ISSUED TODAY TO THE CLAIMS DIVISION OF OUR OFFICE TO ALLOW YOU THE DIFFERENCE BETWEEN YOUR ORIGINAL BID PRICE OF $0.3212 PER POUND AND YOUR OFFER OF $0.05 PER POUND ON THE QUANTITY INVOLVED.