B-150468, OCT 22, 1963
Highlights
YOU ASK WHY YOU WERE NOT ALLOWED TO REMOVE ANCHORS YOU HAD CONTRACTED TO PURCHASE WITHOUT AGREEING TO SCRAP THEM. YOU WERE NOT ALLOWED TO REMOVE THE ANCHORS BECAUSE YOU DID NOT SUBMIT A BOND GUARANTEEING THAT THE ANCHORS WOULD BE SCRAPED. THE CITED DECISION HELD THAT THE SCRAPPING CONDITION WAS INCLUDED IN THE CONTRACT AND THE INVITATION FOR BIDS WITHOUT LEGAL AUTHORITY. 500 ALLEGEDLY DEPOSITED AS A BID GUARANTEE AND FORFEITED FOR A BREACH OF CONTRACT WHICH THE RECORD SHOWS OCCURRED BECAUSE YOU WERE UNWILLING TO COMPLY WITH THE ILLEGAL SCRAPPING CONDITION. THE SUM WHICH DEFENSE SUPPLY AGENCY REPORTS WAS WITHHELD AS LIQUIDATED DAMAGES. WE WILL ADVISE DEFENSE SUPPLY AGENCY ACCORDINGLY.
B-150468, OCT 22, 1963
TO DREYFUS SUPPLY AND MACHINERY CORP.:
IN YOUR LETTER OF JULY 10, 1963, YOU ASK WHY YOU WERE NOT ALLOWED TO REMOVE ANCHORS YOU HAD CONTRACTED TO PURCHASE WITHOUT AGREEING TO SCRAP THEM. YOU WERE NOT ALLOWED TO REMOVE THE ANCHORS BECAUSE YOU DID NOT SUBMIT A BOND GUARANTEEING THAT THE ANCHORS WOULD BE SCRAPED. CF. 43 COMP. GEN. * * *, B-150468, DATED JULY 2, 1963. HOWEVER, THE CITED DECISION HELD THAT THE SCRAPPING CONDITION WAS INCLUDED IN THE CONTRACT AND THE INVITATION FOR BIDS WITHOUT LEGAL AUTHORITY. THEREFORE, THE CLAIM SUBMITTED IN YOUR LETTER OF JULY 22 FOR REFUND OF $2,500 ALLEGEDLY DEPOSITED AS A BID GUARANTEE AND FORFEITED FOR A BREACH OF CONTRACT WHICH THE RECORD SHOWS OCCURRED BECAUSE YOU WERE UNWILLING TO COMPLY WITH THE ILLEGAL SCRAPPING CONDITION, MAY BE ALLOWED IN THE AMOUNT OF $2,374.28, THE SUM WHICH DEFENSE SUPPLY AGENCY REPORTS WAS WITHHELD AS LIQUIDATED DAMAGES. WE WILL ADVISE DEFENSE SUPPLY AGENCY ACCORDINGLY.