B-167235, JUL. 28, 1969

B-167235: Jul 28, 1969

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THE AMOUNT OF THE VOUCHER IS CLAIMED BY MARTIN MARIETTA CORPORATION ON ACCOUNT OF COSTS SAID TO HAVE BEEN INCURRED IN PREPARING FOR SHIPMENT AND LOADING ON CARRIER'S EQUIPMENT EXCESS GOVERNMENT-OWNED FILE CABINETS WHICH WERE STORED IN THE BASEMENT AND ON THE THIRD FLOOR OF BUILDINGS AT MARTIN MARIETTA. WHICH WERE REQUISITIONED BY THE SUPPLY BRANCH OF THE DEFENSE DEPOT MEMPHIS. IT APPEARS AT THE TIME OF REQUISITIONING THAT FUNDS WERE ENCUMBERED TO COVER THE TRANSPORTATION CHARGES. GOVERNMENT BILLS OF LADING WERE ISSUED. TRANSPORTATION CHARGES WERE PAID. IT WAS NOT THEN KNOWN THAT ANY COSTS WOULD BE INCURRED FOR PREPARATION FOR SHIPMENT AND LOADING OF THE FILE CABINETS ON THE CARRIER'S EQUIPMENT AND HENCE NO PURCHASE ORDER WAS ISSUED TO COVER SUCH INCIDENTAL SERVICES.

B-167235, JUL. 28, 1969

TRANSPORTATION - INCIDENTAL SERVICES DECISION TO DEFENSE SUPPLY AGENCY ACCOUNTING AND FINANCE OFFICER AUTHORIZING PAYMENT FOR SERVICES PERFORMED BY MARTIN-MARIETTA CORP. IN PREPARING FOR SHIPMENT SURPLUS GOVERNMENT-OWNED FILE CABINETS REQUISITIONED BY DEFENSE DEPOT MEMPHIS. THE CONTRACTOR HAS BEEN PAID FOR TRANSPORTATION CHARGES. THE SERVICES MAY BE REGARDED AS INCIDENT TO THE PROCUREMENT OF THE EXCESS GOVT. PROPERTY AND A PROPER CHARGE TO BE RECEIVING ACTIVITY.

TO MR. W. F. GRICE:

YOUR LETTER OF JUNE 3, 1969, DDMT-CAF, FORWARDED HERE BY LETTER OF JUNE 11, 1969, DSAH-CFF, FROM THE OFFICE OF THE COMPTROLLER, DEFENSE SUPPLY AGENCY HEADQUARTERS, CAMERON STATION, ALEXANDRIA, VIRGINIA 22314, REQUESTS AN ADVANCE DECISION AS TO THE PROPRIETY OF PAYING A VOUCHER FOR $85 IN FAVOR OF MARTIN MARIETTA CORPORATION.

THE AMOUNT OF THE VOUCHER IS CLAIMED BY MARTIN MARIETTA CORPORATION ON ACCOUNT OF COSTS SAID TO HAVE BEEN INCURRED IN PREPARING FOR SHIPMENT AND LOADING ON CARRIER'S EQUIPMENT EXCESS GOVERNMENT-OWNED FILE CABINETS WHICH WERE STORED IN THE BASEMENT AND ON THE THIRD FLOOR OF BUILDINGS AT MARTIN MARIETTA, BALTIMORE, MARYLAND, AND WHICH WERE REQUISITIONED BY THE SUPPLY BRANCH OF THE DEFENSE DEPOT MEMPHIS, UNDER ITS REQUISITION NOS. SB 3500- 8135-0014-68 AND 3500-8135-0015-68 TO FILL A NEED WHICH EXISTED AT THE DEPOT.

IT APPEARS AT THE TIME OF REQUISITIONING THAT FUNDS WERE ENCUMBERED TO COVER THE TRANSPORTATION CHARGES, GOVERNMENT BILLS OF LADING WERE ISSUED, AND TRANSPORTATION CHARGES WERE PAID. BUT IT WAS NOT THEN KNOWN THAT ANY COSTS WOULD BE INCURRED FOR PREPARATION FOR SHIPMENT AND LOADING OF THE FILE CABINETS ON THE CARRIER'S EQUIPMENT AND HENCE NO PURCHASE ORDER WAS ISSUED TO COVER SUCH INCIDENTAL SERVICES.

IN RESPONSE TO OUR LETTER TO THE SUPPLY OFFICER AT THE DEFENSE DEPOT MEMPHIS, INFORMING HIM OF THE CLAIM AND ASKING HIM TO ADVISE US AS TO ANY OBJECTION HE MIGHT HAVE TO OUR OFFICE AUTHORIZING PAYMENT OF THE $85 CLAIMED FOR THE COST OF THE SERVICES RENDERED BY MARTIN MARIETTA, THUS RATIFYING THE RENDITION OF THE SERVICES AS INCIDENT TO THE PROCUREMENT OF THE EXCESS GOVERNMENT PROPERTY UNDER THE REQUISITIONS CITED ABOVE, THE SUPPLY OFFICER INDICATED IT WAS THE VIEW OF HIS OFFICE THAT MARTIN MARIETTA IS ENTITLED TO REIMBURSEMENT FOR THE COST OF SERVICES RENDERED IN EFFECTING TRANSFER OF THE EXCESS CABINETS TO HIS DEPOT, AND THAT CHARGES OF THIS NATURE ARE COMMONPLACE. HOWEVER, HE DID MENTION IT IS CUSTOMARY THAT NOTIFICATION OF SUCH CHARGES BE MADE UPON ADVERTISEMENT OF AVAILABILITY OF EXCESS PROPERTY AND THE FACT THAT THE TRANSFER WAS BETWEEN CONTRACTOR AND GOVERNMENT AGENCY MAY HAVE CONTRIBUTED TO THE DIFFICULTIES IN THIS CASE.

IN VIEW OF THE ABOVE, IT IS OUR VIEW THAT THE COSTS SOUGHT BY MARTIN MARIETTA MAY BE REGARDED AS A PROPER CHARGE TO THE ACTIVITY WHICH RECEIVED THE USE AND BENEFIT OF THE EXCESS GOVERNMENT PROPERTY. THE AMOUNT CLAIMED DOES NOT APPEAR UNREASONABLE. ACCORDINGLY, YOU ARE AUTHORIZED TO PAY THE AMOUNT OF THE VOUCHER, WHICH TOGETHER WITH THE RELATED FILE IS ATTACHED, TO MARTIN MARIETTA CORPORATION.