B-145819, SEP. 15, 1961

B-145819, SEP. 15, 1961

TO THE SECRETARY OF THE ARMY:

FURTHER REFERENCE IS MADE TO THE REQUEST FOR RELIEF OF THE BOB SPOONER MOTOR COMPANY, SILURIA, ALABAMA, IN CONNECTION WITH A BID WHICH THE COMPANY SUBMITTED IN RESPONSE TO ATLANTA ARMY DEPOT SALE INVITATION NO. 09 -030-S-61-32.

IN RESPONSE TO THE INVITATION, ISSUED BY THE CONSOLIDATED SURPLUS SALES OFFICE OF THE ATLANTA ARMY DEPOT, THE BOB SPOONER MOTOR COMPANY SUBMITTED A SPOT BID DATED MARCH 31, 1961, BY MAIL, TO THE DEPOT, OFFERING TO PURCHASE ITEM NO. 95, COVERING ONE GENERATOR SET, DIESEL ENGINE, 30 KW., USED--- POOR CONDITION, ETC., FOR $306. SINCE THIS WAS THE HIGHEST BID RECEIVED A NOTICE OF AWARD OF ITEM NO. 95 WAS MAILED TO THE BOB SPOONER MOTOR COMPANY ON APRIL 7, 1961. BY LETTER DATED APRIL 15, 1961, BOB SPOONER NOTIFIED THE GOVERNMENT CONTRACTING OFFICER THAT UPON ARRIVAL AT THE ATLANTA ARMY DEPOT HE DISCOVERED THAT THE GENERATOR SET DID NOT HAVE A DIESEL ENGINE BUT MERELY THE HULL OF AN ENGINE WITH "NO HEAD, NO PISTONS, NO PAN, NOTHING EXCEPT THE GENERATOR AND A OCK.' IN VIEW OF THIS THE BIDDER REFUSED TO ACCEPT DELIVERY AND MAKE PAYMENT OF THE BALANCE DUE. THE DEPOT DECLARED THE COMPANY IN DEFAULT AND RETAINED ITS BID DEPOSIT OF $61.20 AS LIQUIDATED DAMAGES, IN ACCORDANCE WITH APPLICABLE PROVISIONS OF THE CONTRACT. THE COMPANY HAS REQUESTED A REFUND OF THE BID DEPOSIT ON THE GROUND THAT THE GENERATOR SET WAS MISDESCRIBED IN THE INVITATION.

IN THE REPORT OF THE QUARTERMASTER GENERAL DATED JULY 26, 1961, IT IS STATED THAT, IN ADDITION TO CERTAIN OTHER DESCRIPTIVE DETAILS THAT WERE AVAILABLE TO THE CONTRACTING OFFICER, THERE ALSO WAS A NOTATION THAT THE REPAIR OF THE GENERATOR SET, AS A UNIT, WAS IMPRACTICAL AND THAT THE SET HAD NO VALUE EXCEPT FOR ITS BASIC MATERIAL CONTENT. AS STATED BY THE QUARTERMASTER GENERAL, SUCH A NOTATION WOULD APPEAR TO CONNOTE, IN GENERALLY ACCEPTED TERMS, THAT THE PROPERTY WAS "SCRAP.' THEREFORE, IT IS OUR OPINION THAT WHEN THE CONTRACTING OFFICER DESCRIBED THE CONDITION OF THE GENERATOR SET AS MERELY "USED--- POOR CONDITION" HE DID SO WITHOUT UTILIZING, TO THE FULLEST EXTENT, THE "BEST AVAILABLE INFORMATION" AS TO THE CONDITION OF THE SET. THERE WOULD APPEAR TO BE LITTLE, IF ANY, DOUBT FROM THE CIRCUMSTANCES REPORTED THAT HAD THE CONTRACTING OFFICER SOUGHT TO FURTHER VERIFY THE NOTATION REGARDING THE BASIC MATERIAL CONTENT VALUE OF THE GENERATOR SET A MORE ACCURATE DESCRIPTION OF THE SET COULD HAVE BEEN SET FORTH IN THE INVITATION.

IN VIEW OF THE FOREGOING, AND SINCE THE ATLANTA ARMY DEPOT HAS AFFIRMED THE STATEMENTS OF THE BOB SPOONER MOTOR COMPANY AS TO THE ACTUAL CONDITION OF THE DIESEL ENGINE, OUR OFFICE WILL HAVE NO OBJECTION TO A REFUND OF THE BID DEPOSIT OF $61.20 TO THE COMPANY, IN THIS PARTICULAR CASE.

THIS MATTER WAS THE SUBJECT OF A REPORT FURNISHED TO OUR OFFICE BY LETTER DATED JULY 26, 1961, QMGGC, FROM THE DEPUTY THE QUARTERMASTER GENERAL, HEADQUARTERS, OFFICE OF THE QUARTERMASTER GENERAL.