B-155192, NOV. 9, 1964

B-155192: Nov 9, 1964

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GENERAL SERVICES ADMINISTRATION: WE HAVE A LETTER DATED OCTOBER 27. FOR THE SAME TYPE ITEM FOR WHICH BIDS WERE SOLICITED PURSUANT TO THE ABOVE INVITATION. VIOLATION MAY RESULT IN TERMINATION OF THE CONTRACT PURSUANT TO THE CLAUSE OF THE GENERAL PROVISIONS ENTITLED "DEFAULT.'" PRICES IN BASIC-WITZ'S CONTRACT ARE BOTH ON AN F.O.B. YOU ADVISE THAT BASIC-WITZ IS THEREFORE APPARENTLY ENTITLED TO AN ORDER FOR THE DRESSERS AT THE PRICES IN EFFECT UNDER CONTRACT NO. IN VIEW OF THE RECORD PRESENTED TO OUR OFFICE WE HAVE NO OBJECTION TO YOUR PROPOSED ACTION.

B-155192, NOV. 9, 1964

TO THE HONORABLE BERNARD L. BOUTIN, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

WE HAVE A LETTER DATED OCTOBER 27, 1964, REFERENCE: LP, WITH ENCLOSURES, FROM THE GENERAL COUNSEL, GENERAL SERVICES ADMINISTRATION, IN CONNECTION WITH THE PROTEST BY ARNDT AND DAY ON BEHALF OF BASIC WITZ FURNITURE INDUSTRIES, TO THE PROPOSED AWARD OF A CONTRACT UNDER INVITATION FOR BIDS NO. FPNFH-T-67291-A-9-29-64, ISSUED ON AUGUST 27, 1964, BY THE FEDERAL SUPPLY SERVICE FOR 240 MAHOGANY DOUBLE DRESSERS.

BASIC-WITZ HAD A FEDERAL SUPPLY SCHEDULE TERM CONTRACT NO. GS-00S 46897, FOR THE PERIOD OCTOBER 1, 1963, THROUGH SEPTEMBER 30, 1964, FOR THE SAME TYPE ITEM FOR WHICH BIDS WERE SOLICITED PURSUANT TO THE ABOVE INVITATION. SUBSECTION 2 OF CLAUSE 1 OF THE SPECIAL PROVISIONS OF BASIC-WITZ'S CONTRACT ENTITLED "MAXIMUM ORDER LIMITATION" PROVIDES AS FOLLOWS:

"THE TOTAL DOLLAR VALUE OF ANY ORDER PLACED UNDER THIS CONTRACT SHALL NOT EXCEED $25,000; PROVIDED, THAT THE DOLLAR VALUE FOR ANY SINGLE ITEM ORDERED, WHETHER ORDERED SEPARATELY OR IN COMBINATION WITH OTHER ITEMS, SHALL NOT EXCEED $15,000, EXCEPT NO COMBINATION OF ITEMS TOTALING IN EXCESS OF $5,000 AND NO SINGLE ITEM IN EXCESS OF $5,000 FOR REQUIREMENTS OF THE DEPARTMENT OF THE NAVY SHALL BE PLACED UNDER THIS CONTRACT. THE CONTRACTOR AGREES NOT TO ACCEPT OR FULFILL ANY ORDERS IN VIOLATION OF THIS PROVISION. VIOLATION MAY RESULT IN TERMINATION OF THE CONTRACT PURSUANT TO THE CLAUSE OF THE GENERAL PROVISIONS ENTITLED "DEFAULT.'" PRICES IN BASIC-WITZ'S CONTRACT ARE BOTH ON AN F.O.B. DELIVERED BASIS FOR ZONES 1, 2 AND 3 AND ON AN F.O.B. ORIGIN BASIS.

YOUR REPORT ADVISES THAT APPLYING THE F.O.B. ORIGIN PRICE UNDER BASIC- WITZ'S CONTRACT THE COST OF THE DRESSERS WOULD BE $13,980 WITH $46.88 AS THE ESTIMATED COST FOR FREIGHT. THE TOTAL COST FOR THE DRESSERS ON AN F.O.B. ORIGIN BASIS WOULD BE $14,426.88 WHICH WOULD BE UNDER THE $15,000 LIMITATION IN BASIC-WITZ'S CONTRACT. YOU ADVISE THAT BASIC-WITZ IS THEREFORE APPARENTLY ENTITLED TO AN ORDER FOR THE DRESSERS AT THE PRICES IN EFFECT UNDER CONTRACT NO. GS-00S-46897 AND YOU PROPOSE PLACING SUCH AN ORDER WITH BASIC-WITZ.

IN VIEW OF THE RECORD PRESENTED TO OUR OFFICE WE HAVE NO OBJECTION TO YOUR PROPOSED ACTION.