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B-139684, AUG. 14, 1959

B-139684 Aug 14, 1959
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TO GORDON ENTERPRISES: REFERENCE IS MADE TO YOUR LETTER DATED JULY 14. YOUR CLAIM WAS ORIGINALLY BASED UPON THE CONTENTION THAT BECAUSE OF CHANGE BY THE GOVERNMENT IN THE REMOVAL DATE OF THE MATERIAL PURCHASED. YOU WERE UNABLE TO COMPLETE PLANS FOR THE PICKUP OF THE MATERIAL WITHIN THE TIME ALLOWED BY THE CONTRACT. FULL DETAILS OF THESE CONTENTIONS AND THE BASIS FOR THE DISALLOWANCE OF YOUR CLAIM WERE FULLY SET FORTH IN GENERAL ACCOUNTING OFFICE SETTLEMENT OF SEPTEMBER 8. YOU NOW CONTEND THAT THE STORAGE RATES PAID BY YOU UNDER THE PRESENT CONTRACT ($0.02 PER SQUARE FOOT FOR INSIDE STORAGE AND $0.01 PER SQUARE FOOT FOR OUTSIDE STORAGE PER DAY) ARE UNREASONABLE AS COMPARED TO THE LOWER RATES CHARGED BY ROBINS AIR FORCE BASE.

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B-139684, AUG. 14, 1959

TO GORDON ENTERPRISES:

REFERENCE IS MADE TO YOUR LETTER DATED JULY 14, 1959, AND ENCLOSURE, REQUESTING RECONSIDERATION OF OUR DECISION OF JULY 2, 1959, WHICH SUSTAINED THE SETTLEMENT OF SEPTEMBER 8, 1958, WHICH DISALLOWED YOUR CLAIM IN THE AMOUNT OF $153.36 AS A REFUND OF THAT AMOUNT PAID BY YOU FOR STORAGE CHARGES ASSESSED AGAINST YOU BECAUSE OF DELAY IN REMOVING SURPLUS MATERIAL PURCHASED BY YOU FROM BROOKLEY AIR FORCE BASE, ALABAMA, UNDER CONTRACT NO. AF 01 (601) S-2286, DATED JANUARY 24, 1958.

YOUR CLAIM WAS ORIGINALLY BASED UPON THE CONTENTION THAT BECAUSE OF CHANGE BY THE GOVERNMENT IN THE REMOVAL DATE OF THE MATERIAL PURCHASED, YOU WERE UNABLE TO COMPLETE PLANS FOR THE PICKUP OF THE MATERIAL WITHIN THE TIME ALLOWED BY THE CONTRACT. FULL DETAILS OF THESE CONTENTIONS AND THE BASIS FOR THE DISALLOWANCE OF YOUR CLAIM WERE FULLY SET FORTH IN GENERAL ACCOUNTING OFFICE SETTLEMENT OF SEPTEMBER 8, 1958.

YOU NOW CONTEND THAT THE STORAGE RATES PAID BY YOU UNDER THE PRESENT CONTRACT ($0.02 PER SQUARE FOOT FOR INSIDE STORAGE AND $0.01 PER SQUARE FOOT FOR OUTSIDE STORAGE PER DAY) ARE UNREASONABLE AS COMPARED TO THE LOWER RATES CHARGED BY ROBINS AIR FORCE BASE, GEORGIA ($0.00364 PER SQUARE FOOT FOR INSIDE STORAGE AND $0.001456 PER SQUARE FOOT FOR OUTSIDE STORAGE PER DAY).

BIDDERS WERE SPECIFICALLY ADVISED IN THE INVITATION FOR BIDS ON WHICH THE CONTRACT INVOLVED IS BASED WHAT THE STORAGE RATES WOULD BE IF THE PURCHASER FAILED TO REMOVE THE PROPERTY WITHIN THE SPECIFIED TIME. IF YOU FELT THAT THE RATES WERE "UNREASONABLE," AS YOU CONTEND, THEN YOU SHOULD NOT HAVE AGREED TO PAY THOSE RATES. IN THIS CONNECTION, THE PROVISIONS OF PARAGRAPH 7 WHICH REFER TO A REASONABLE STORAGE CHARGE ARE SPECIFICALLY SUPPLEMENTED BY PARAGRAPH C OF THE ADDITIONAL PROVISIONS WHICH SETS FORTH THE RATES YOU WERE CHARGED.

IN THE CIRCUMSTANCES, THE ACCEPTANCE OF YOUR BID GAVE RISE TO A VALID AND BINDING CONTRACT WHICH FIXED THE RIGHTS AND LIABILITIES OF THE PARTIES. THE RIGHT TO HAVE PERFORMANCE IN STRICT ACCORDANCE WITH THE TERMS OF THE CONTRACT FOR THE PRICE QUOTED IN YOUR BID WHICH VESTED IN THE GOVERNMENT CANNOT BE GIVEN AWAY OR SURRENDERED BY ANY OFFICER OF THE GOVERNMENT. SEE UNITED STATES V. AMERICAN SALES COMPANY, 27 F.2D 389, AFFIRMED 32 F.2D 141 AND CERTIORARI DENIED, 280 U.S. 574; PACIFIC HARDWARE AND STEEL COMPANY V. UNITED STATES, 49 C.CLS. 327, 335; BAUSCH AND LOMB OPTICAL COMPANY V. UNITED STATES, 78 C.CLS. 584, CERTIORARI DENIED, 292 U.S. 645.

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