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B-141226, JAN. 13, 1960

B-141226 Jan 13, 1960
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IN THE CITED DECISION TO THE SECRETARY WE HELD WITH RESPECT TO SURPLUS VESSELS OFFERED FOR SALE BY THE DEPARTMENT OF THE NAVY PURSUANT TO THE TERMS OF 10 U.S.C. 7305 THAT THE STATUTORY REQUIREMENT FOR A 10 PERCENT CASH DEPOSIT TO ACCOMPANY EACH BID WOULD HAVE TO BE HONORED IN THE FUTURE UNLESS THE REQUIREMENT SHOULD BE WAIVED IN WRITING BY THE PRESIDENT AS PROVIDED BY LAW. IT SHOULD BE NOTED THAT THE SALE PROCEDURE PRESCRIBED BY THE CITED STATUTE IS APPLICABLE ONLY TO VESSELS STRICKEN FROM THE NAVAL VESSEL REGISTER PURSUANT TO 10 U.S.C. 7304. THE INVITATION CLEARLY PROVIDES THAT NO BID DEPOSIT IS REQUIRED IN CONNECTION WITH THE SALE. OUR DECISION OF DECEMBER 31 WAS LIMITED TO THE SALE OF VESSELS STRICKEN FROM THE NAVAL VESSEL REGISTER PURSUANT TO 10 U.S.C. 7305.

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B-141226, JAN. 13, 1960

TO HUGHES BROS., INC.:

WE REFER TO YOUR LETTER OF JANUARY 4, 1960, WITH RESPECT TO THE INTENT OF OUR DECISION OF DECEMBER 31, 1959, TO THE SECRETARY OF THE NAVY.

IN THE CITED DECISION TO THE SECRETARY WE HELD WITH RESPECT TO SURPLUS VESSELS OFFERED FOR SALE BY THE DEPARTMENT OF THE NAVY PURSUANT TO THE TERMS OF 10 U.S.C. 7305 THAT THE STATUTORY REQUIREMENT FOR A 10 PERCENT CASH DEPOSIT TO ACCOMPANY EACH BID WOULD HAVE TO BE HONORED IN THE FUTURE UNLESS THE REQUIREMENT SHOULD BE WAIVED IN WRITING BY THE PRESIDENT AS PROVIDED BY LAW. IT SHOULD BE NOTED THAT THE SALE PROCEDURE PRESCRIBED BY THE CITED STATUTE IS APPLICABLE ONLY TO VESSELS STRICKEN FROM THE NAVAL VESSEL REGISTER PURSUANT TO 10 U.S.C. 7304.

IN YOUR LETTER OF JANUARY 4 YOU NOTE THE EXISTENCE OF INVITATION NO. B- 113-60-189 FOR THE SALE OF CERTAIN VESSELS BY THE DEPARTMENT OF THE NAVY AT NORFOLK, VIRGINIA, BIDS TO BE OPENED ON JANUARY 21, 1960. THE INVITATION CLEARLY PROVIDES THAT NO BID DEPOSIT IS REQUIRED IN CONNECTION WITH THE SALE. YOU APPEAR TO BELIEVE THAT SALE WITHOUT A BID DEPOSIT REQUIREMENT WOULD BE INCONSISTENT WITH AND CONTRARY TO THE CONCLUSIONS EXPRESSED IN OUR LETTER OF DECEMBER 31.

AS INDICATED ABOVE, OUR DECISION OF DECEMBER 31 WAS LIMITED TO THE SALE OF VESSELS STRICKEN FROM THE NAVAL VESSEL REGISTER PURSUANT TO 10 U.S.C. 7305. IT IS OUR UNDERSTANDING THAT THE PROPERTY ADVERTISED UNDER INVITATION NO. B-113-60-189 HAS NEVER BEEN INCLUDED IN THE NAVAL VESSEL REGISTER AND THEREFORE CANNOT BE SOLD PURSUANT TO 10 U.S.C. 7305. WE HAVE BEEN ADVISED THAT THE SALE IS BEING CONDUCTED UNDER THE AUTHORITY CONTAINED IN SECTION 203 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, AS AMENDED, 40 U.S.C. 484. NEITHER THE LATTER STATUTORY PROVISION NOR REGULATIONS PROMULGATED PURSUANT TO IT REQUIRE THE FURNISHING OF DEPOSITS WITH BIDS ON SALES CONDUCTED PURSUANT THERETO.

WE HELD IN OUR DECISION, B-137319, FEBRUARY 5, 1959, PUBLISHED AT 38, COMP. GEN. 532, A COPY OF WHICH IS ENCLOSED, THAT WHERE AN INVITATION FOR BID REQUIRES A DEPOSIT OR OTHER SECURITY TO BE SUBMITTED WITH THE BID, FAILURE TO COMPLY WITH SUCH REQUIREMENT NECESSITATES THE REJECTION OF THE BID AS NONRESPONSIVE. HOWEVER, EXCEPT IN THE RELATIVELY FEW SITUATIONS WHERE A BID DEPOSIT IS REQUIRED BY STATUTE OR REGULATION THE IMPOSITION OF SUCH REQUIREMENT REMAINS WITHIN THE DISCRETION OF THE CONTRACTING AGENCY.

WE TRUST THAT THE FOREGOING CLARIFIES THE MATTER TO YOUR SATISFACTION.

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