B-145401, JUN. 20, 1961
Highlights
REMOVAL OF THE PURCHASED MATERIAL WAS TO BE ACCOMPLISHED BY AUGUST 10. STORAGE CHARGES WERE NOT ASSESSED AGAINST YOU FOR ANY PERIOD AFTER AUGUST 26. ON THE BASIS THAT YOUR DELAY AFTER THAT DATE WAS WITHOUT YOUR FAULT OR NEGLIGENCE. IT WAS ADMINISTRATIVELY RECOMMENDED THAT THE AMOUNT OF $1. THAT YOU WERE LEGALLY LIABLE FOR THE STORAGE CHARGES ASSESSED AGAINST YOU UNDER THE TERMS OF THE CONTRACT. IT WAS DIFFICULT AND EXPENSIVE TO ARRANGE TRANSPORTATION AND STORAGE FACILITIES FOR THE MATERIAL. SINCE YOU ARE LOCATED IN CALIFORNIA. THE CONTRACT FOR WHICH YOU BID WAS CLEAR IN ITS TERMS. UNDER THESE TERMS YOU ARE LIABLE FOR THE ASSESSED STORAGE CHARGES. THERE IS NO BASIS PRESENTED UPON WHICH WE CAN REMIT.
B-145401, JUN. 20, 1961
TO ILLMAN JONES, INC.:
YOUR LETTER OF MAY 22, 1961, REQUESTS RECONSIDERATION OF OUR DECISION OF APRIL 21, 1961 (B-145401), WHEREIN WE HELD THAT WE HAD NO AUTHORITY TO REMIT THE AMOUNT OF $1,259.55 LIQUIDATED DAMAGES ASSESSED AGAINST YOU.
BRIEFLY, THE MATTER AROSE PURSUANT TO AUCTION SALE NO. 30-127-S-61-2, OPENED ON JULY 19, 1960, UNDER WHICH YOU RECEIVED AWARD ON CERTAIN SURPLUS MACHINES AT A TOTAL AGGREGATE PRICE OF $38,450. UNDER THE TERMS AND CONDITIONS OF THE CONTRACT, REMOVAL OF THE PURCHASED MATERIAL WAS TO BE ACCOMPLISHED BY AUGUST 10, 1960, OR STORAGE CHARGES WOULD ACCRUE AT A SPECIFIED RATE THEREAFTER. YOU DID NOT ACCOMPLISH COMPLETE REMOVAL UNTIL SEPTEMBER 6, 1960. THE ADMINISTRATIVE OFFICE ASSESSED STORAGE CHARGES AGAINST YOU FOR THE PERIOD AUGUST 11 THROUGH AUGUST 26, 1960, IN THE AMOUNT OF $1,259.55. STORAGE CHARGES WERE NOT ASSESSED AGAINST YOU FOR ANY PERIOD AFTER AUGUST 26, 1960, ON THE BASIS THAT YOUR DELAY AFTER THAT DATE WAS WITHOUT YOUR FAULT OR NEGLIGENCE. IT WAS ADMINISTRATIVELY RECOMMENDED THAT THE AMOUNT OF $1,259.55 STORAGE CHARGES ACTUALLY ASSESSED SHOULD NOT BE REMITTED.
WE HELD IN OUR DECISION OF APRIL 21, 1961, THAT YOU WERE LEGALLY LIABLE FOR THE STORAGE CHARGES ASSESSED AGAINST YOU UNDER THE TERMS OF THE CONTRACT. WITH REGARD TO THE REMISSION OF LIQUIDATED STORAGE CHARGES ON AN EQUITABLE BASIS, WE STATED THAT 41 U.S.C. 256A REQUIRES APPROVAL OF THE HEAD OF THE FEDERAL AGENCY CONCERNED PRIOR TO REMISSION ACTION BY THIS OFFICE, AND SINCE NO SUCH APPROVAL HAD BEEN RECOMMENDED, WE HAD NO AUTHORITY TO REMIT THE AMOUNT ASSESSED AGAINST YOU.
YOU SAY THAT BECAUSE THE BIDDING TOOK PLACE IN NEW YORK STATE, IT WAS DIFFICULT AND EXPENSIVE TO ARRANGE TRANSPORTATION AND STORAGE FACILITIES FOR THE MATERIAL, SINCE YOU ARE LOCATED IN CALIFORNIA. ON THIS BASIS YOU REQUEST RECONSIDERATION.
THE CONTRACT FOR WHICH YOU BID WAS CLEAR IN ITS TERMS. UNDER THESE TERMS YOU ARE LIABLE FOR THE ASSESSED STORAGE CHARGES. SINCE THE HEAD OF THE PROCURING AGENCY HERE CONCERNED HAS NOT FAVORABLY RECOMMENDED REMISSION OF THE ASSESSED LIQUIDATED DAMAGES, THERE IS NO BASIS PRESENTED UPON WHICH WE CAN REMIT. ACCORDINGLY, WE MUST SUSTAIN OUR PREVIOUS ACTION OF APRIL 21, 1961.
YOU ASK IN THE LETTER OF MAY 22, 1961, WHETHER YOU MAY PAY THE AMOUNT DUE ON THE BASIS OF $50 PER MONTH. WE ARE REFERRING YOUR REQUEST TO THE DEPARTMENT OF THE ARMY FOR ITS CONSIDERATION INASMUCH AS IT HAS THE BASIC RESPONSIBILITY FOR COLLECTION OF DEBTS ARISING OUT OF ITS TRANSACTIONS. UNDOUBTEDLY THE DEPARTMENT WILL ADVISE YOU ON THE MATTER OF PAYMENT IN THE NEAR FUTURE.