B-140999, OCT. 27, 1959

B-140999, OCT. 27, 1959

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO A LETTER DATED OCTOBER 12, 1959, FROM THE ASSISTANT SECRETARY OF THE ARMY (LOGISTICS) REQUESTING A DECISION AS TO WHETHER CONTRACT NO. DA/S/92-557-FEC-29698 COVERING A SALE OF EXCESS PROPERTY IN JAPAN MAY BE RESCINDED.

THE U.S. ARMY PROPERTY DISPOSAL SALES AGENCY ISSUED INVITATION NO. 92-557 -S-59-1155, INVITING BIDS--- TO BE OPENED MAY 8, 1959--- FOR THE PURCHASE FROM THE GOVERNMENT OF VARIOUS ITEMS OF EXCESS PROPERTY, INCLUDING ITEM 12, WHICH COVERED 393 PORTABLE TELEPHONE SETS. THE INVITATION CONTAINED THE USUAL PROVISIONS WITH REGARD TO INSPECTION AND DISCLAIMER OF WARRANTY. FOUR BIDS ON A UNIT PRICE BASIS WERE RECEIVED IN THE AMOUNTS OF 150 YEN, 200 YEN, 285 YEN AND 910 YEN. THE HIGH BID OF 910 YEN, OR IN THE TOTAL OF 357,630 YEN ($993.42), SUBMITTED BY YAMAZEN SHOTEN WAS ACCEPTED ON MAY 14, 1959. BY LETTER DATED MAY 30, 1959, THE CONTRACTOR COMPLAINED THAT THE PROPERTY HE ORIGINALLY INSPECTED WAS GROSSLY DIFFERENT FROM THE PROPERTY HE WAS OFFERED AFTER AWARD OF THE CHECKER AT THE DISPOSAL YARD HAD CONDUCTED HIM TO VIEW A LOT CONTAINING TELEPHONE SETS FOR USE IN JEEPS. ON MAY 18, 1959, AFTER AWARD OF THE CONTRACT AND TO BEGIN REMOVAL OF THE PROPERTY, THE CHECKER CONDUCTED HIM TO A LOT CONTAINING A DIFFERENT ITEM, I.E., FIELD TELEPHONE SETS.

IT IS REPORTED BY THE CONTRACTING OFFICER THAT AN INVESTIGATION OF THE CONTRACTOR'S COMPLAINT INDICATES THAT HE WAS SHOWN THE WRONG LOT OF MATERIALS WHEN HE ASKED TO INSPECT ITEM 12 AND THAT THE PROPERTY SHOWN TO THE CONTRACTOR WAS DIFFERENT FROM THAT INTENDED TO BE SOLD BY THE GOVERNMENT.

IN THE CIRCUMSTANCES, SINCE THE CONTRACTOR WAS MISLED BY THE GOVERNMENT'S REPRESENTATIVE WHILE MAKING INSPECTION, THE AWARD OF THE CONTRACT SHOULD BE CANCELED AND, THEREFORE, ANY MONEY RECEIVED AS A DEPOSIT OR PART PAYMENT SHOULD BE REFUNDED.