B-76633, FEB 24, 1949

B-76633, FEB 24, 1949

PRECIS-UNAVAILABLE

THE HONORABLE, THE SECRETARY OF THE NAVY:

AS THE RESULT OF AN INFORMAL MEETING OF REPRESENTATIVES FORM THE DEPARTMENT OF THE NAVY, DEPARTMENT OF THE AIR FORCE, AND THE GENERAL ACCOUNTING OFFICE ON OCTOBER 13, 1948, A PROCEDURE HAS BEEN DEVISED WITH THE CONCURRENCE OF THE ABOVE-MENTIONED REPRESENTATIVES AND A REPRESENTATIVE OF THE DEPARTMENT OF THE ARMY, FOR THE DISTRIBUTION OF CROSS-SERVICE CONTRACTS ENTERED INTO BY THE DEPARTMENTS OF THE NAVY, THE ARMY, AND THE AIR FORCE, WHEN PURCHASES ARE TO BE MADE FOR OR BY ONE OR MORE OF THE OTHER DEPARTMENTS WITH PAYMENT TO BE MADE BY THE DEPARTMENT OR DEPARTMENTS RECEIVING THE SUPPLIES OR SERVICES.

THIS INFORMAL MEETING WAS FOLLOWED BY A LETTER FORM THE BUREAU OF SUPPLIES AND ACCOUNTS, DEPARTMENT OF THE NAVY, DATED OCTOBER 22, 1948, ADDRESSED TO THE RECONCILIATION AND CLEARANCE DIVISION OF THIS OFFICE IN REPLY TO LETTER OF SEPTEMBER 2, 1948, FROM THE SAID DIVISION. THE PERTINENT PORTION OF THE LETTER FROM THE BUREAU OF SUPPLIES AND ACCOUNTS IS AS FOLLOWS:

"AS A BASIS FOR THE DISCUSSION, THE REPRESENTATIVES OF THE NAVY DEPARTMENT EXPLAINED THAT, FOR THE MOST PART, THE CONTRACTS INVOLVED WERE OF THE INVITATION, BID AND AWARD TYPE REQUIRING DELIVERY FOR A SINGLE DEPARTMENT ONLY AND FOR PAYMENT DIRECT BY THAT RECEIVING DEPARTMENT. WAS FURTHER EXPLAINED THAT CONTRACTS COVERING REQUIREMENTS OF MORE THAN ONE DEPARTMENT WERE ISSUED ONLY WHEN ACTUAL BENEFITS WOULD ACCRUE THEREBY TO THE GOVERNMENT.

"TO CONSERVE PAPER AND PERSONNEL, THE NAVY DEPARTMENT PRESENTLY SENDS PROSPECTIVE BIDDERS ONLY THREE COPIES OF THE INVITATION TO BID. AFTER FILLING OUT THE BID, THE BIDDER THEN RETURNS TWO COPIES OF THE INVITATION AND BID, SIGNED BY HIM, TO THE DEPARTMENT. WHEN THE AWARD HAS BEEN MADE, ONE SIGNED COPY OF THE AWARD IS SENT TO THE SUCCESSFUL BIDDER AND THIS COPY OF THE AWARD WITH HIS COPY OF THE INVITATION AND BID CONSTITUTE HIS COPY OF THE CONTRACT. THE OTHER TWO SIGNED COPIES OF THE AWARD ARE AFFIXED TO THE TWO ORIGINAL SIGNED COPIES OF THE INVITATION AND BID. THESE TWO ORIGINAL SIGNED COPIES OF THE AWARD, INVITATION AND BID CONSTITUTE THE GOVERNMENT'S TWO ORIGINAL SIGNED COPIES OF THE CONTRACT.

"OF THESE TWO ORIGINAL SIGNED COPIES, THIS DEPARTMENT FORWARDS THE RIBBON COPY, AS REQUESTED IN THE REFERENCE, TO THE NAVY AUDIT BRANCH OF YOUR OFFICE AT CLEVELAND, OHIO. THE OTHER ORIGINAL SIGNED COPY IS RETAINED BY THE DEPARTMENT FOR ADMINISTRATIVE PURPOSES. THEREFORE, IN ORDER TO FURNISH AN ADDITIONAL COPY OF THE CONTRACT, AS REQUESTED IN SAID REFERENCE, FOR THE ARMY AUDIT BRANCH OF YOUR OFFICE, THIS DEPARTMENT EITHER: (1) WOULD HAVE TO PROVIDE BIDDERS WITH FOUR INSTEAD OF THREE COPIES OF THE INVITATION TO BID REQUIRING THEM TO RETURN THREE INSTEAD OF TWO SIGNED ORIGINAL COPIES OF THE INVITATION AND BID; OR (2) WOULD HAVE TO PREPARE AND FURNISH A CERTIFIED OR PHOTOSTATIC EXACT COPY OF THE AWARD, INVITATION AND BID.

"THOSE ATTENDING THE CONFERENCE WERE UNANIMOUSLY OF THE OPINION THAT CONSIDERABLE ECONOMY COULD BE EFFECTED PROVIDED NO ADMINISTRATIVE COMPLICATIONS WOULD BE CAUSED THE GENERAL ACCOUNTING OFFICE, BY SUBSTITUTING AN 'ABBREVIATED' COPY, SUCH AS THIS DEPARTMENT FURNISHES ITS DISBURSING AND FISCAL OFFICERS, FOR THE CERTIFIED OR PHOTOSTATIC EXACT COPY WHICH YOUR OFFICE REQUESTS FOR ITS ARMY AUDIT DIVISION. THESE 'ABBREVIATED' COPIES, WHICH THE DEPARTMENT PROVIDES DISBURSING AND FISCAL OFFICERS, ARE AUTHENTICATED BY A STAMPED ENDORSEMENT TO THE EFFECT THAT THE CONTRACT HAS BEEN AWARDED. WHILE THESE 'ABBREVIATED' COPIES CONTAIN AN EXACT COPY OF THE AWARD AND AN EXACT COPY OF THE INVITATION TO BID, THEY DO NOT CONTAIN A COPY OF THE CONTRACTOR'S BID. THE INVITATION TO BID, AS ISSUED, CONTAINS A BLANK COPY OF THE BID FORM BUT, IN PREPARING THE 'ABBREVIATED' COPY, THE CONTRACTOR'S BID IS NOT COPIED THEREON SINCE THE AWARD SETS FORTH IN FULL THAT PORTION OF THE BID WHICH IS PERTINENT TO THE ITEMS AWARDED."

THE FOLLOWING AGREED-UPON PROCEDURE IS APPROVED FOR USE IN CONNECTION WITH ALL CONTRACTS ENTERED INTO BY THE DEPARTMENTS OF THE NAVY, THE ARMY, AND THE AIR FORCE WHEN PURCHASES ARE MADE FOR OR BY ONE OR MORE OF THE OTHER DEPARTMENTS WITH PAYMENT TO BE MADE BY THE DEPARTMENT OR DEPARTMENTS RECEIVING THE SUPPLIES OR SERVICES:

1. THE CONTRACTING DEPARTMENT WOULD FORWARD AN ORIGINAL COPY OF THE CONTRACT, TOGETHER WITH EITHER "ABBREVIATED" COPIES (DESCRIBED IN THE ABOVE QUOTATION) OR CERTIFIED OR PHOTOSTATIC EXACT COPIES OF THE CONTRACT IN A NUMBER EQUAL TO THE NUMBER OF RECEIVING DEPARTMENTS, TO THE AUDIT BRANCH OF THE GENERAL ACCOUNTING OFFICE APPLICABLE TO THE CONTRACTING DEPARTMENT. (WITH RESPECT TO THE DEPARTMENT OF THE NAVY, THIS WOULD BE THE NAVY AUDIT BRANCH OF THE GENERAL ACCOUNTING OFFICE AT CLEVELAND, OHIO.)

2. AFTER THE AUDIT BRANCH APPLICABLE TO THE CONTRACTING DEPARTMENT COMPLETES ITS REVIEW OF THE CONTRACT, THAT AUDIT BRANCH WOULD THEN TRANSMIT THE "ABBREVIATED", CERTIFIED, OR PHOTOSTATIC COPY OR COPIES OF THE CONTRACT TO THE APPLICABLE AUDIT BRANCH OR BRANCHES OF THE GENERAL ACCOUNTING OFFICE FOR AUDIT OF PAYMENTS MADE, UNDER THE CONTRACT, BY THE DISBURSING OFFICERS OF THE RECEIVING DEPARTMENT OR DEPARTMENTS. IN THE CASE OF PURCHASE BY THE NAVY DEPARTMENT FOR THE DEPARTMENT OF THE ARMY, THE NAVY AUDIT BRANCH OF THE GENERAL ACCOUNTING OFFICE WOULD FORWARD A COPY TO THE ARMY AUDIT BRANCH OF THE GENERAL ACCOUNTING OFFICE WHICH IS LOCATED IN ST. LOUIS, MISSOURI.)

3. WITH RESPECT TO CONTRACT MODIFICATIONS AND CHANGE ORDERS, THE CONTRACTING DEPARTMENT WOULD FORWARD ONE ORIGINAL COPY, TOGETHER WITH EITHER DUPLICATE ORIGINAL COPIES OR CERTIFIED OR PHOTOSTATIC EXACT COPIES IN A NUMBER EQUAL TO THE NUMBER OF RECEIVING DEPARTMENTS, TO THE AUDIT BRANCH OF THE GENERAL ACCOUNTING OFFICE APPLICABLE TO THE CONTRACTING DEPARTMENT. (THUS, THE NAVY DEPARTMENT, HAVING TRANSMITTED THE COPIES OF THE ORIGINAL CONTRACT TO THE NAVY AUDIT BRANCH OF THE GENERAL ACCOUNTING OFFICE IN CLEVELAND, WOULD LIKEWISE TRANSMIT COPIES OF ALL MODIFICATIONS AND CHANGE ORDERS TO SAID NAVY AUDIT BRANCH.)

4. HAVING COMPLETED ITS REVIEW OF THE MODIFICATION OR CHANGE ORDER, THE AUDIT BRANCH APPLICABLE TO THE CONTRACTING DEPARTMENT WOULD THEN FORWARD A COPY OR COPIES OF SUCH INSTRUMENT TO THE APPLICABLE AUDIT BRANCH OR BRANCHES OF THE GENERAL ACCOUNTING OFFICE FOR REFERENCE IN CONNECTION WITH THE AUDIT OF PAYMENTS MADE BY THE RECEIVING DEPARTMENT OR DEPARTMENTS UNDER THE CONTRACT. (IN THE CASE OF PURCHASES BY THE NAVY DEPARTMENT FOR THE DEPARTMENT OF THE ARMY, THE NAVY AUDIT BRANCH OF THE GENERAL ACCOUNTING OFFICE AT CLEVELAND WOULD FORWARD ONE COPY OF THE ARMY AUDIT BRANCH OF THE GENERAL ACCOUNTING OFFICE AT ST. LOUIS.)

OFFICE LETTER OF JULY 8, 1948, B-76633, TO THE DEPARTMENT OF THE NAVY IS SUPPLEMENTED ACCORDINGLY.

THE EXCELLENT COOPERATION OF THE REPRESENTATIVES OF THE THREE DEPARTMENTS WITH THIS OFFICE IN SIMPLIFYING THE PROCEDURE FOR THE DISTRIBUTION OF CROSS-SERVICE CONTRACTS IS VERY MUCH APPRECIATED.