B-145793, AUGUST 4, 1961, 41 COMP. GEN. 86

B-145793: Aug 4, 1961

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SALES - BIDS - DEPOSITS - RETENTION THE PROCEDURES FOR THE RETENTION OF BID DEPOSITS SUBMITTED BY UNSUCCESSFUL BIDDERS WHO ARE OTHERWISE INDEBTED TO THE UNITED STATES PENDING LITIGATION OF THE INDEBTEDNESS HAVE CREATED ADMINISTRATIVE BURDENS GREATER THAN THE BENEFITS TO THE GOVERNMENT AND. WERE FORWARDED TO OUR CLAIMS DIVISION FOR A DETERMINATION IN ACCORDANCE WITH 38 COMP. IN EACH CASE THE TREASURER OF THE UNITED STATES WAS NAMED AS ALTERNATE PAYEE. THE CITED DECISION HOLDS THAT A BID DEPOSIT SUBMITTED BY AN UNSUCCESSFUL BIDDER WHO IS OTHERWISE INDEBTED TO THE UNITED STATES SHALL. UPON AN ADMINISTRATIVE DETERMINATION THAT THE DEBT IS UNCOLLECTIBLE. IT SHOULD BE NOTED THAT IN THE INSTANT CASES THE DEBTS CLAIMED HAVE NOT BEEN REPORTED AS ADMINISTRATIVELY UNCOLLECTIBLE.

B-145793, AUGUST 4, 1961, 41 COMP. GEN. 86

SALES - BIDS - DEPOSITS - RETENTION THE PROCEDURES FOR THE RETENTION OF BID DEPOSITS SUBMITTED BY UNSUCCESSFUL BIDDERS WHO ARE OTHERWISE INDEBTED TO THE UNITED STATES PENDING LITIGATION OF THE INDEBTEDNESS HAVE CREATED ADMINISTRATIVE BURDENS GREATER THAN THE BENEFITS TO THE GOVERNMENT AND, THEREFORE, BID DEPOSITS IN SUCH CASES NEED NO LONGER BE RETAINED. 38 COMP. GEN. 476, OVERRULED.

TO THE SECRETARY OF DEFENSE, AUGUST 4, 1961:

UNDER LETTER OF MARCH 2, 1961, REFERENCE FINEK X, FROM THE OFFICE OF THE CHIEF OF FINANCE, DEPARTMENT OF THE ARMY, CHECK NO. 268,032, IN THE AMOUNT OF $200, PAYABLE TO AMERICAN AUTO PARTS COMPANY; CHECK NO. 284,796, IN THE AMOUNT OF $150, PAYABLE TO AMERICAN AUTO PARTS, INC.; AND CHECK NO. 115,406, IN THE AMOUNT OF $1,000 PAYABLE TO UNITED AUTO PARTS COMPANY, INC., WERE FORWARDED TO OUR CLAIMS DIVISION FOR A DETERMINATION IN ACCORDANCE WITH 38 COMP. GEN. 476. IN EACH CASE THE TREASURER OF THE UNITED STATES WAS NAMED AS ALTERNATE PAYEE.

THE CITED DECISION HOLDS THAT A BID DEPOSIT SUBMITTED BY AN UNSUCCESSFUL BIDDER WHO IS OTHERWISE INDEBTED TO THE UNITED STATES SHALL, UPON AN ADMINISTRATIVE DETERMINATION THAT THE DEBT IS UNCOLLECTIBLE, BE FORWARDED TO AND HELD BY OUR OFFICE PENDING LITIGATION OF THE COMPANY'S INDEBTEDNESS TO THE UNITED STATES. IT SHOULD BE NOTED THAT IN THE INSTANT CASES THE DEBTS CLAIMED HAVE NOT BEEN REPORTED AS ADMINISTRATIVELY UNCOLLECTIBLE. IN ANY CASE, THE POSITION TAKEN IN 38 COMP. GEN. 476 AND THE PROCEDURES ESTABLISHED IN IMPLEMENTATION THEREOF HAVE CREATED ADMINISTRATIVE BURDENS GREATER THAN THE BENEFITS DERIVED. FURTHER, IT HAS BEEN FOUND IMPRACTICABLE TO ESTABLISH ADMINISTRATIVE CONTROLS TO PREVENT THE WITHHOLDING OF BID DEPOSITS IN EXCESS OF THE CLAIMS AGAINST A BIDDER. VIEW OF THE ADMINISTRATIVE DIFFICULTIES PRESENTED IN RELATION TO THE BENEFITS OBTAINED, IT HAS BEEN DETERMINED THAT THE POSITION TAKEN AT 38 COMP. GEN. 476 WILL NO LONGER BE FOLLOWED. IT IS REQUESTED THAT YOUR REGULATIONS BE MODIFIED ACCORDINGLY.

THE CHECKS FORWARDED WITH THE LETTER OF MARCH 2, 1961, WILL BE SENT TO THE FIRMS NAMED AS PAYEES.