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B-140253, OCT. 9, 1959

B-140253 Oct 09, 1959
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EXCEPT THAT EVACUATED DEVICES (TUBES) WERE GUARANTEED FOR NINETY DAYS. IT WAS ADMINISTRATIVELY DETERMINED THAT THE MACHINES COULD NOT BE MADE TO FUNCTION WITH REASONABLE DEPENDABILITY WITHOUT MAJOR CHANGES AND THAT. THE HOSPITALS HAVING THE UNITS WERE INSTRUCTED TO RETURN THEM. THE CONTRACTOR CONTENDS THAT THE EQUIPMENT FURNISHED WAS THE SAME AS THE UNIT INSPECTED AND ACCEPTED BY THE BUREAU OF STANDARDS AND THAT THE UNITS SHIPPED TO VETERANS ADMINISTRATION WERE ALL TESTED AND CHECKED OUT PRIOR TO SHIPMENT. THE CONTRACTOR CONTENDS FURTHER THAT YOUR AGENCY WAS NOT INTERESTED IN THE CORRECTION OF THE ALLEGED DEFECTS BUT WANTED TO RETURN THE MACHINES BECAUSE OF THE REFUSAL OF INDIVIDUAL DOCTORS TO WORK WITH A NEW TYPE OF MACHINE WITH WHICH THEY WERE NOT FAMILIAR.

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B-140253, OCT. 9, 1959

TO HONORABLE SUMNER G. WHITTIER, ADMINISTRATOR, VETERANS ADMINISTRATION:

UNDER DATE OF APRIL 29, 1958 (REFERENCE 1001), THE ASSISTANT ADMINISTRATOR FOR ADMINISTRATION REPORTED TO OUR CLAIMS DIVISION AS UNCOLLECTIBLE THE MATTER OF AN INDEBTEDNESS TO THE UNITED STATES OF H. HALPERN AND A. J. ROSENBURG, D/B/A) HALROSE CORPORATION (FORMERLY ELECTRO- PHYSICAL LABORATORIES, INC.), IN THE AMOUNT OF $8,091, REPRESENTING AN AMOUNT FOUND TO BE DUE THE UNITED STATES BY REASON OF THE DEFAULT BY THE CONTRACTOR ELECTRO-PHYSICAL LABORATORIES, INC., UNDER CONTRACT NO. V1005 P -5417, DATED DECEMBER 18, 1956, PROVIDING FOR THE FURNISHING OF EIGHTEEN CARDIOGRAPHS.

UNDER THE TERMS OF THE CONTRACT IN THIS CASE THE CONTRACTOR GUARANTEED THE EQUIPMENT AGAINST DEFECTIVE MATERIAL, WORKMANSHIP AND OPERATION FOR A PERIOD OF ONE YEAR FROM THE DATE OF FINAL ACCEPTANCE AND ALSO AGREED TO CORRECT WITHOUT ANY EXPENSE TO THE VETERANS ADMINISTRATION ANY DEFECTS IN MATERIAL, WORKMANSHIP AND OPERATION THAT MIGHT DEVELOP DURING THE GUARANTEE PERIOD, EXCEPT THAT EVACUATED DEVICES (TUBES) WERE GUARANTEED FOR NINETY DAYS.

THE RECORD INDICATES THAT THE CARDIOGRAPHS DELIVERED UNDER THE CONTRACT FAILED TO PERFORM SATISFACTORILY AND THAT THE CONTRACTOR'S ENGINEER AS WELL AS REPRESENTATIVES OF THE CONTRACTOR'S SUCCESSOR--- VOLTER ELECTRONICS--- MADE NUMEROUS TRIPS TO THE HOSPITALS TO ASSIST PERSONNEL IN THE OPERATION OF THE MACHINES. YOUR AGENCY REPORTS THAT AFTER IMPARTIAL TESTS OF THE EQUIPMENT HAD BEEN MADE AT THE VETERANS ADMINISTRATION FACILITY AT HINES, ILLINOIS, IT WAS ADMINISTRATIVELY DETERMINED THAT THE MACHINES COULD NOT BE MADE TO FUNCTION WITH REASONABLE DEPENDABILITY WITHOUT MAJOR CHANGES AND THAT, THEREFORE, THE HOSPITALS HAVING THE UNITS WERE INSTRUCTED TO RETURN THEM.

THE CONTRACTOR CONTENDS THAT THE EQUIPMENT FURNISHED WAS THE SAME AS THE UNIT INSPECTED AND ACCEPTED BY THE BUREAU OF STANDARDS AND THAT THE UNITS SHIPPED TO VETERANS ADMINISTRATION WERE ALL TESTED AND CHECKED OUT PRIOR TO SHIPMENT. THE CONTRACTOR CONTENDS FURTHER THAT YOUR AGENCY WAS NOT INTERESTED IN THE CORRECTION OF THE ALLEGED DEFECTS BUT WANTED TO RETURN THE MACHINES BECAUSE OF THE REFUSAL OF INDIVIDUAL DOCTORS TO WORK WITH A NEW TYPE OF MACHINE WITH WHICH THEY WERE NOT FAMILIAR. SAMPLE TESTIMONIAL LETTERS WERE PRESENTED BY THE CONTRACTOR ATTESTING THE FUNCTIONING OF THE MODEL FURNISHED THE VETERANS ADMINISTRATION IN USE BY MEMBERS OF THE MEDICAL PROFESSION.

THE CONTRACT HERE INVOLVED INCORPORATES BY REFERENCE STANDARD FORM 32 (1949 ED.) AND ARTICLE 12 OF THE FORM IS THE STANDARD "DISPUTES" CLAUSE. THERE APPEARS TO BE A DISPUTE OF FACT IN THIS CASE AND SINCE THE RECORD FAILS TO SHOW ANY FINDINGS BY THE CONTRACTING OFFICER CONCERNING SUCH DISPUTE, THE FILE IS RETURNED HEREWITH FOR COMPLIANCE WITH THE DISPUTES PROCEDURE, OR FOR THE FURNISHING OF ADDITIONAL RECORDS SHOWING COMPLIANCE THEREWITH. UPON FINAL DISPOSITION OF THE DISPUTE THE MATTER MAY BE RETURNED FOR FURTHER COLLECTION ACTION, IF REQUIRED.

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