A-80298, OCTOBER 7, 1936, 16 COMP. GEN. 351

A-80298, OCTOBER 7, 1936, 16 COMP. GEN. 351

CONTRACTS - GENERAL SUPPLY SCHEDULE - AUTOMOBILE AND TRUCK PARTS - VALUE OF USED EQUIPMENT TRADED IN FORD PASSENGER CAR AND TRUCK PARTS REQUIRED BY THE VARIOUS GOVERNMENT ESTABLISHMENTS DURING THE FISCAL YEAR ENDING JUNE 30, 1937, ARE FOR PROCUREMENT BY ADMINISTRATIVE OFFICERS UNDER THE APPLICABLE PROCUREMENT DIVISION, TREASURY DEPARTMENT, CONTRACT FOR SAID PERIOD, BUT THERE BEING NO PROVISION THEREIN FOR FIXING THE TRADE-IN VALUE OF A USED MOTOR, SUCH VALUE, FOR MISCELLANEOUS RECEIPTS DEPOSIT PURPOSES, IS FOR DETERMINATION BY REQUESTING TRADE-IN BID FROM THE CONTRACTOR, AND CASH BIDS FROM OTHERS.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF THE INTERIOR, OCTOBER 7, 1936:

THERE HAS BEEN RECEIVED YOUR LETTER OF AUGUST 26, 1936, AS FOLLOWS:

REFERENCE IS MADE TO DECISION A-61183 OF APRIL 26, 1935, 14 COMP. GEN. 796, TO THE SECRETARY OF THE INTERIOR, AND TO DECISION A-71634 OF MARCH 16, 1936, TO THE DIRECTOR OF EMERGENCY CONSERVATION WORK, REGARDING THE TRADE-IN OF OLD FORD MOTORS FOR FACTORY-RECONDITIONED MOTORS. IN BOTH DECISIONS THE NECESSITY FOR ADVERTISING FOR COMPETITIVE BIDS AS A BASIS FOR ANY SUCH PURCHASE AND TRADE-IN WAS EMPHASIZED.

YOUR ATTENTION IS RESPECTFULLY DIRECTED TO CONTRACT TPS-12672, ITEM NUMBER 8-P-150-/C/-/6), CLASS 8, GENERAL SCHEDULE OF SUPPLIES, FOR THE PERIOD JULY 1, 1936, TO JUNE 30, 1937, MADE WITH THE FORD MOTOR COMPANY BY THE BRANCH OF SUPPLY, PROCUREMENT DIVISION, TREASURY DEPARTMENT. THIS ITEM COVERS THE PROCUREMENT OF RECONDITIONED MOTORS AS EXCHANGE ITEMS INCLUDING TRADE-IN OF OLD MOTORS. THIS CONTRACT, AS WELL AS OTHERS IN CLASS 8 OF THE GENERAL SUPPLY SCHEDULE, IS MANDATORY AS TO USE BY THIS DEPARTMENT FOR DELIVERIES WITHIN THE CONTINENTAL LIMITS OF THE UNITED STATES, ACCORDING TO INFORMAL ADVICE FROM THE OFFICE OF THE DIRECTOR OF PROCUREMENT TO THE PURCHASING OFFICER OF THIS DEPARTMENT.

A DECISION IS RESPECTFULLY REQUESTED AS TO WHETHER CONTRACT TPS 12672 IS OF SUCH A NATURE AS TO CONSTITUTE COMPLIANCE WITH YOUR REQUIREMENTS FOR ADVERTISING SUCH PURCHASES AS CONTEMPLATED IN DECISIONS A-61183 AND A- 71634 TO THE EXTENT THAT THIS DEPARTMENT MAY PROCURE AND EXCHANGE MOTORS THEREUNDER.

IF YOU DECIDE THAT THIS CONTRACT IS TO BE SO USED, IT IS REQUESTED THAT YOU ADVISE THIS DEPARTMENT WHAT PROCEDURE WILL BE ACCEPTABLE IN DETERMINING THE VALUE OF THE TRADED-IN MOTOR FOR DEPOSIT AS MISCELLANEOUS RECEIPTS, THERE BEING NO PROVISION IN THE CONTRACT FOR REVEALING THE TRADE -IN ALLOWANCE.

IF YOU DECIDE THAT THE CONTRACT IS NOT TO BE USED FOR EXCHANGE ITEMS AND THAT ADVERTISING FOR EACH PURCHASE IS REQUIRED, IT WILL NECESSARILY FOLLOW THAT YOUR DECISION TO THAT EFFECT, IF SO RENDERED, WILL SUPERSEDE THE MANDATORY FEATURE OF CONTRACT TPS-12672 INSOFAR AS THE EXCHANGE ITEMS ARE CONCERNED.

WITH RESPECT TO YOUR INQUIRY, AS STATED IN PARAGRAPH 3 OF YOUR LETTER, THE INVOLVED CONTRACT, NO. TPS-12672, DATED JUNE 18, 1936, WITH THE FORD MOTOR CO.--- FOR FURNISHING DURING THE FISCAL YEAR ENDING JUNE 30, 1937, TO THE VARIOUS GOVERNMENT ESTABLISHMENTS REQUIRED FORD PASSENGER CAR AND TRUCK PARTS, AS THEREIN SPECIFIED--- WOULD APPEAR TO BE OF SUCH A NATURE AS TO CONSTITUTE COMPLIANCE WITH THE REQUIREMENTS FOR ADVERTISING SUCH PURCHASES AS CONTEMPLATED IN THE DECISIONS OF THIS OFFICE TO WHICH YOU REFER, IT APPEARING THAT THE AWARD OF SAID CONTRACT WAS MADE PURSUANT TO INVITATIONS ISSUED APRIL 14, 1936, BY THE PROCUREMENT DIVISION, BRANCH OF SUPPLY, TREASURY DEPARTMENT, FOR BIDS ON SCHEDULE FOR CLASSES 8 AND 66--- PARTS, MOTOR VEHICLE, PASSENGER, TRUCK, ETC.--- TO BE OPENED MAY 8, 1936. ACCORDINGLY, ADMINISTRATIVE OFFICERS ARE REQUIRED TO PROCURE FROM SAID CONTRACTOR NECESSARY FORD PASSENGER CAR AND TRUCK PARTS AS SPECIFIED IN THE 1937 CONTRACT.

RELATIVE TO YOUR REQUEST TO BE ADVISED AS TO THE PROCEDURE TO BE FOLLOWED UNDER SAID CONTRACT IN THOSE CASES WHERE IT HAS BEEN ADMINISTRATIVELY DETERMINED TO BE IN THE INTEREST OF THE UNITED STATES TO EXCHANGE A USED MOTOR--- IN NEED OF REPAIRS--- IN PART PAYMENT FOR A NEW OR RECONDITIONED MOTOR, AS THE CONTRACT CONTAINS NO PROVISION FOR FIXING THE TRADE-IN VALUE OF THE USED MOTOR, SUCH TRADE-IN VALUE PROPERLY SHOULD BE DETERMINED BY REQUESTING BIDS THEREON, THAT IS, TRADE-IN BID FROM THE CONTRACTOR AND CASH BIDS FROM OTHERS.