B-147068, JUL. 11, 1962

B-147068, JUL. 11, 1962

TO NA-GRO SALES:

FURTHER REFERENCE IS MADE TO YOUR LETTERS OF AUGUST 17 AND SEPTEMBER 29, 1961, RELATIVE TO YOUR INDEBTEDNESS TO THE UNITED STATES IN THE AMOUNT OF $4,394.85 RESULTING FROM YOUR DEFAULT ON SALES CONTRACT O.I.NO. 5130, AND TO YOUR CLAIM FOR REFUND OF $400.01 UNDER SPOT BID SALE CONTRACT NO. 36- 038-61-12675.

THE RECORD SHOWS THAT BY CONTRACT O.I.NO. 5130 THE ATLANTA GENERAL DEPOT AWARDED TO YOU AT YOUR BID PRICES OF $451.99 AND $509.99, RESPECTIVELY, A TOTAL OF $961.98, TWO LOTS OF SURPLUS PROPERTY LISTED ON SPOT BID SALE ADVERTISEMENT NO. 09-030-S-60-9 AS ITEMS NOS. 143 AND 144 DESCRIBED AS ,WATER, CANNED, 10 OZ. (PACKED FOR DRINKING)," "COND- - UNUSED.' THE CONTRACT CONTAINED THE GENERAL SALE TERMS AND CONDITIONS USUALLY APPLICABLE TO THE SALE OF GOVERNMENT SURPLUS PROPERTY AND ALSO A PROVISION IN THE SPECIAL CONDITIONS THAT THE GOVERNMENT WOULD HAVE THE RIGHT TO CHARGE, AND COLLECT UPON DEMAND, REASONABLE STORAGE CHARGES FOR ALL PROPERTY NOT REMOVED WITHIN 20 CALENDAR DAYS AFTER NOTICE OF AWARD. NOTICE OF AWARD AND SALES DOCUMENT WAS MAILED ON JANUARY 29, 1960, AND YOU WERE ADVISED THEREBY THAT THE FULL PURCHASE PRICE SHOULD BE PAID AND THE PROPERTY REMOVED BY FEBRUARY 18, 1960, WHICH UPON YOUR REQUEST WAS EXTENDED TO MARCH 4, 1960.

SUBSEQUENTLY, YOU REFUSED TO MAKE PAYMENT IN FULL OF THE CONTRACT PRICE AND REMOVE THE MATERIAL AS REQUIRED UNDER THE CONTRACT. BY LETTERS DATED MARCH 16 AND 30, 1960, THE CONTRACTING OFFICER ADVISED YOU THAT YOU HAD BEEN DECLARED IN DEFAULT, THAT THE PROPERTY WOULD BE ADVERTISED FOR RESALE, THAT STORAGE CHARGES WOULD BE ASSESSED AGAINST YOU AT THE RATES PROVIDED FOR IN THE CONTRACT FROM MARCH 4, 1960, TO THE DATE OF ADVERTISEMENT FOR RESALE, AND THAT YOU WOULD BE LIABLE FOR THE DIFFERENCE BETWEEN THE RETURN REALIZED FROM THE RESALE OF THE PROPERTY AND YOUR CONTRACT PRICE, LESS CREDIT OF THE AMOUNT OF YOUR BID DEPOSIT.

THE PROPERTY WAS ADVERTISED FOR RESALE AND YOU WERE ADVISED THAT STORAGE CHARGES IN THE AMOUNT OF $1,098.13 WERE ASSESSED AGAINST YOU FOR THE PERIOD FROM MARCH 4, 1960, TO THE DATE OF ADVERTISEMENT FOR RESALE. WHEN THE PROPERTY WAS SOLD STORAGE CHARGES WERE RECOMPUTED AND CORRECTED TO INCLUDE THE PERIOD OF TIME FROM THE DATE THE PROPERTY WAS READVERTISED TO THE DATE SPECIFIED FOR REMOVAL BY THE SUBSEQUENT PURCHASER, RESULTING IN A TOTAL OF $4,301.80 STORAGE CHARGES BEING ASSESSED AGAINST YOU. THE CONTRACTING OFFICER THEN ADVISED YOU THAT YOU WERE INDEBTED TO THE GOVERNMENT IN A TOTAL AMOUNT OF $4,394.85, REPRESENTING STORAGE CHARGES OF $4,301.80 PLUS $93.05 WHICH IS THE DIFFERENCE BETWEEN YOUR CONTRACT PRICE OF $961.98 AND $665 REALIZED ON THE RESALE OF THE PROPERTY LESS CREDIT OF YOUR BID DEPOSIT OF $203.93. IN LETTER DATED NOVEMBER 21, 1960, YOU ADVISED THE DEPARTMENT OF THE ARMY THAT, IN THE CIRCUMSTANCES, YOU WOULD BE WILLING TO FOREGO THE RETURN OF YOUR DEPOSIT IN CONSIDERATION OF A WAIVER OF THE STORAGE CHARGES.

UNDER DATE OF JUNE 27, 1961, THE DEPARTMENT OF THE ARMY DETERMINED THE INDEBTEDNESS AGAINST YOU TO BE ADMINISTRATIVELY UNCOLLECTIBLE AND FORWARDED SAME TO OUR OFFICE FOR APPROPRIATE ACTION. BY LETTER DATED AUGUST 10, 1961, YOU WERE ADVISED BY OUR CLAIMS DIVISION THAT UNLESS THE DEBT WAS SETTLED IMMEDIATELY THE MATTER MIGHT BE REPORTED TO THE DEPARTMENT OF JUSTICE FOR LEGAL ACTION AND YOUR NAME ADDED TO THE LIST OF CONTRACTORS INDEBTED TO THE UNITED STATES, WHICH LIST IS FURNISHED GOVERNMENT DEPARTMENTS AND AGENCIES SO THAT UNPAID AMOUNTS DUE DEBTOR CONTRACTORS MAY BE APPLIED TO LIQUIDATE THEIR DEBTS. THE RECORD INDICATES THAT THE SUM OF $400.01 CLAIMED BY YOU UNDER SPOT BID SALE CONTRACT NO. 36 -028-61-12675 IS BEING HELD PENDING THE SETTLEMENT OF YOUR INDEBTEDNESS TO THE UNITED STATES UNDER CONTRACT O.I.NO. 5130.

IN YOUR LETTER OF AUGUST 17, 1961, YOU REQUESTED REVIEW BY THE COMPTROLLER GENERAL OF THE GOVERNMENT'S CLAIM IN THE AMOUNT OF $4,394.85, AND IN LETTER OF SEPTEMBER 29, 1961, YOU REQUESTED REMISSION OF THE STORAGE CHARGES IN THE AMOUNT OF $4,301.80, IN ACCORDANCE WITH SECTION 10 (A) OF THE ACT OF SEPTEMBER 5, 1950, 41 U.S.C. 256A, AND STATED THAT YOU WOULD BE WILLING TO PAY THE $93.05 REPRESENTING THE LOSS TO THE GOVERNMENT INCURRED ON THE RESALE OF THE PROPERTY IN QUESTION.

UPON A REVIEW OF THE MATTER OF YOUR INDEBTEDNESS TO THE GOVERNMENT UNDER CONTRACT O.I.NO. 5130, THE CONTRACTING OFFICER HAS REPORTED THAT THE ACTUAL COST OF STORAGE TO THE GOVERNMENT FOR THE MATERIAL DURING THE PERIOD INVOLVED IS ONLY $74.64, AND IT IS ADMINISTRATIVELY RECOMMENDED AS JUST AND EQUITABLE THAT STORAGE CHARGES (LIQUIDATED DAMAGES) AGAINST YOU BE REDUCED TO $74.64 AND THE BALANCE OF $4,227.16 OF THE TOTAL STORAGE CHARGES ASSESSED AGAINST YOU BE REMITTED, AND THAT THE GOVERNMENT RETAIN FOR COLLECTION ITS CLAIM FOR $93.05 ADDITIONAL COSTS TO THE GOVERNMENT RESULTING FROM YOUR DEFAULT ON THE CONTRACT.

ACCORDINGLY, PURSUANT TO AUTHORITY VESTED IN ME BY THE PROVISIONS OF 10 (A) OF THE ACT OF SEPTEMBER 5, 1950, 64 STAT. 578, 591 (41 U.S.C. 256A), AND IN ACCORDANCE WITH THE ADMINISTRATIVE RECOMMENDATION, REMISSION OF $4,227.16 LIQUIDATED DAMAGES IS APPROVED. OUR CLAIMS DIVISION IS BEING ADVISED TODAY TO MAKE SETTLEMENT ON THAT BASIS AND TO EFFECT COLLECTION BY WAY OF SETOFF OF $167.69 ($74.64 STORAGE CHARGES AND $93.05 ADDITIONAL COSTS) FROM THE SUM OF $400.01 DUE YOU UNDER CONTRACT NO. 36-028-61- 12675.