B-153100, JUL. 1, 1964
Highlights
DEFENSE SUPPLY AGENCY: REFERENCE IS MADE TO LETTER DATED JUNE 12. IT IS STATED THAT THE STORAGE CHARGE RATE EMPLOYED IN SURPLUS TIRE'S CONTRACT WAS ONE WHICH WAS DEVELOPED AND UTILIZED PRIOR TO THE ESTABLISHMENT OF THE DEFENSE SUPPLY AGENCY. AT THAT TIME EACH MILITARY SERVICE WAS RESPONSIBLE FOR THE SALE OF ALL DEPARTMENT OF DEFENSE SURPLUS PERSONAL PROPERTY WITHIN A SPECIFIED GEOGRAPHICAL AREA. THE DEFENSE LOGISTICS SERVICES CENTER WAS GIVEN THE RESPONSIBILITY FOR THE OPERATION OF THE DEPARTMENT OF DEFENSE SURPLUS PROPERTY PROGRAM. LIMITED THE MAXIMUM AMOUNT CHARGED TO 20 PERCENT OF THE CONTRACT PRICE OF THE ITEMS FOR WHICH STORAGE CHARGES WERE ASSESSED. IT IS FURTHER STATED THAT AFTER A CAREFUL REVIEW OF ALL THE FACTS AND CIRCUMSTANCES SURROUNDING THE ADMINISTRATION OF THIS CONTRACT IT IS CONCLUDED THAT IT WOULD BE JUST AND EQUITABLE TO REMIT THE STORAGE CHARGES ASSESSED AGAINST SURPLUS TIRE SALES TO THE EXTENT THAT THEY EXCEED THOSE WHICH WOULD NOW BE CHARGED UNDER THE SAME CIRCUMSTANCES.
B-153100, JUL. 1, 1964
TO LIEUTENANT GENERAL ANDREW T. MCNAMARA, DIRECTOR, DEFENSE SUPPLY AGENCY:
REFERENCE IS MADE TO LETTER DATED JUNE 12, 1964, WITH ENCLOSURES FROM MR. R. M. LEMKE, COUNSEL, DEFENSE SUPPLY AGENCY, CONCERNING THE PETITION OF SURPLUS TIRE SALES, COMPTON, CALIFORNIA, FOR REMISSION ON AN EQUITABLE BASIS OF STORAGE CHARGES IN THE AMOUNT OF $521.70 ASSESSED UNDER CONTRACTO.I. 329 AND INVITATION FOR BIDS AVI-04-513-S-61 14.
IT IS STATED THAT THE STORAGE CHARGE RATE EMPLOYED IN SURPLUS TIRE'S CONTRACT WAS ONE WHICH WAS DEVELOPED AND UTILIZED PRIOR TO THE ESTABLISHMENT OF THE DEFENSE SUPPLY AGENCY. AT THAT TIME EACH MILITARY SERVICE WAS RESPONSIBLE FOR THE SALE OF ALL DEPARTMENT OF DEFENSE SURPLUS PERSONAL PROPERTY WITHIN A SPECIFIED GEOGRAPHICAL AREA. UPON THE ESTABLISHMENT OF THE DEFENSE SUPPLY AGENCY, THE DEFENSE LOGISTICS SERVICES CENTER WAS GIVEN THE RESPONSIBILITY FOR THE OPERATION OF THE DEPARTMENT OF DEFENSE SURPLUS PROPERTY PROGRAM. IN ORDER TO STANDARDIZE THE SALES CONTRACT PROVISIONS IN USE THROUGHOUT THE UNITED STATES THE CENTER REDUCED THE RATE FOR OUTSIDE STORAGE OF THE TYPE HERE INVOLVED, EXCLUDED SATURDAYS, SUNDAYS, AND HOLIDAYS AS DAYS FOR WHICH STORAGE WOULD BE CHARGED, AND LIMITED THE MAXIMUM AMOUNT CHARGED TO 20 PERCENT OF THE CONTRACT PRICE OF THE ITEMS FOR WHICH STORAGE CHARGES WERE ASSESSED.
IT IS FURTHER STATED THAT AFTER A CAREFUL REVIEW OF ALL THE FACTS AND CIRCUMSTANCES SURROUNDING THE ADMINISTRATION OF THIS CONTRACT IT IS CONCLUDED THAT IT WOULD BE JUST AND EQUITABLE TO REMIT THE STORAGE CHARGES ASSESSED AGAINST SURPLUS TIRE SALES TO THE EXTENT THAT THEY EXCEED THOSE WHICH WOULD NOW BE CHARGED UNDER THE SAME CIRCUMSTANCES. RECOMPUTATION OF THE CHARGES IN ACCORDANCE WITH CURRENT CONTRACT PROVISIONS WOULD RESULT IN AN ASSESSMENT OF $190.06 (20 PERCENT OF $950.30). PURSUANT TO 41 U.S.C. 256A RECOMMENDATION IS MADE THAT WE REMIT $331.64 TO SURPLUS TIRE SALES.
WE HAVE REVIEWED THE ADMINISTRATIVE REPORT AND DOCUMENTS ACCOMPANYING THE LETTER OF JUNE 12, 1964, AND AGREE WITH THE RECOMMENDATION THAT $331.64 OF THE STORAGE CHARGES ASSESSED MAY BE REMITTED. HOWEVER, WE FEEL THAT BEFORE WE PROPERLY MAY TAKE FORMAL ACTION IN THE MATTER, SURPLUS TIRE SALES SHOULD FIRST SATISFY THE PORTION OF THE INDEBTEDNESS WHICH WILL STILL REMAIN OUTSTANDING. ACCORDINGLY, IT IS REQUESTED THAT YOUR AGENCY COMMUNICATE WITH OFFICIALS OF THE DEBTOR AND INFORM THEM THAT IT WILL BE NECESSARY FOR SURPLUS TIRE SALES TO REMIT TO YOUR AGENCY $190.06 WHICH WILL REPRESENT THE UNREMITTED STORAGE CHARGES STILL REMAINING DUE THE GOVERNMENT ON THE INDEBTEDNESS.
UPON RECEIPT OF ADVICE FROM YOUR AGENCY TO THE EFFECT THAT $190.06 HAS BEEN COLLECTED, OUR OFFICE WILL TAKE FORMAL ACTION IN REGARD TO THE REMISSION OF THE STORAGE CHARGES ASSESSED AGAINST SURPLUS TIRE SALES AND YOU WILL BE SO ADVISED.