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stations or depots, and a year from now, conceivably, you could be procuring these items.

Captain NANCE. I have here in my hands SR 420-75-1 issued by the Department of the Army, Washington 25, D. C., on June 11, 1953. Actually, we have gone further than the SR requires, and we have violated it by retaining a lot of these stocks as long as we have retained them.

Now, paragraph 3 of this particular SR to which I referred, reads as follows:

3. Basis of control.-Control over stock can be achieved only by maintaining careful supervision of the procurement and use of supplies and the disposition of quantities in excess of station requirements. This control will be exercised by the post engineer through the establishment and periodic review of station control levels. Fixed levels cannot be established solely from mathematical data; therefore, past issue experience serves only as a guide in determining levels. Anticipated requirements are important and will be considered as one of the factors in setting levels.

Now, a level is the quantity of supply that you retain in your warehouse at all times for meeting your routine requirements. When you get more items in than you are supposed to have, the items are supposed to be excess.

Now, paragraph 4-c of this same SR is as follows:

4-c. Establishing levels.—A control level and, where authorized, a disposal level, will be established for each item carried on repairs and utilities stock record cards. For a recently acquired item for which no issue experience has been accumulated, a temporary control level will be established from the best estimate of requirements. When sufficient issue experience has been developed, the level will be adjusted accordingly. A zero level will be established for slowmoving items (except standby) which have been issued less than three times during the preceding 90 days. Such items will be procured only as needed.

I think probably the figuring behind this SR was that it would be cheaper to procure slow-moving items locally, as required, than to put up with the enormous cost of warehousing, storing, maintaining, and providing all the critical work for items of that nature which, as in the case of the post engineers, may exceed control levels.

Mr. IKARD. That doesn't quite answer my question. My inquiry was why First Army would consider such items excess after April 1,

1954.

They say we are going to use it as a training base for civilian components. The supply here during that period when those outfits are here, the National Guard or whatever they are, may come out of different funds, but next winter, fall and winter, it will go back to a standby basis and will have to again be supplied. I realize it will be small, but again it will be supplied by the Army.

It looks like we might be getting into a situation where you sell some screwdrivers this year because you have too many, and the next fall you go back and buy them from the people you sold them to because you need them.

The matter of policy on the First Army level is what I was making inquiry about.

Major PASCHAL. In disposing of certain items we took into consideration that there is no anticipated winter operation in Camp Drum in the future. Most of the items that we got rid of are items that were brought in prior to the winter operations.

Mr. IKARD. That answers the question. In other words, you are maintaining levels to maintain the camp in the way that it will exist. Major PASCHAL. That is right.

Mr. IKARD. That answers my question.

Mr. RIEHLMAN. We will stand in recess for 5 minutes.

(Whereupon, at 11: 44 a. m., the hearing was recessed for 5 minutes.) Mr. RIEHLMAN. We will proceed with the hearing.

Mr. Cotter, will you resume?

SALE NO. 1

Mr. COTTER. Colonel Jennings, I notice your first sale in fiscal year 1954 involved a used ammonia refrigeration plant which originally cost the Government $24,000, and that you offered it for sale on an invitation-for-bids dated August 3, 1953, which was opened August 18, 1953. The high bid was $1,369.02, and it was bought by E. S. Waggoner, Evans Mills, N. Y.

That is not too great a return. Could somebody give us the story on when the plant was obtained, for what purpose, and what procedures were taken before it was sold, and so forth?

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The property described herein may be inspected between the hours of
Monday thru Friday, 3 Aug 1953 thru 18 Aug 1953
Joseph J. Hedley, 1st Lt., CMC, Property Disposal Off., Bldg. T-3, Camp Drum, NY

A bid deposit of 20 percent of the total amount bid, in the form of postal or express money order, or cashier's or certified check, or such other form of security as may be acceptable to the contracting officer, made payable to the Treasurer of the United States, must accompany the bid. Property must be removed by the successful bidder within 20 calendar days after notice of award, unless otherwise specified in the description or in any special condition, time to be computed from the date of mailing or otherwise furnishing said notice. DATE OF BID

BID

In compliance with the above invitation, and subject to all the General Sale Terms and Conditions and any special conditions, the undersigned offers and agrees, if this bid be accepted within. calendar days (60 calendar days if no period be specified by the bidder) after date of the opening, to purchase any or all of the items described herein upon which prices are quoted, at the price set opposite each item. Bid deposit in the amount of $ is enclosed. BIDDER REPRESENTS: (1) That the aggregate number of employees of the bidder and its affiliates is (Check appropriate boxes)

500 or more, less than 500. (2) That he has, has not, employed or retained a company or person (other than a full-time employee) to solicit or secure this contract, and agrees to furnish information relating thereto as requested by the contracting officer. NAME AND ADDRESS OF BIDDER (Street and number, city and State) SIGNATURE OF PERSON AUTHORIZED TO SIGN THIS BID

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GENERAL SALE TERMS AND CONDITIONS

1. INSPECTION.-Bidders are invited and urged to inspect the property to be sold prior to submitting bids. Property will be available for inspection at the places and times specified in the Invitation. The Government will not be obliged to furnish any labor for such purpose. In no ease will failure to inspect constitute grounds for a claim or for the withdrawal of a bid after opening.

2. CONDITION OF PROPERTY.-All property listed herein is offered for sale "as is" and "where is," and without recourse against the Government. If it is provided herein that the Government shall load, then "where is" means f. o. b. conveyance at the point specified in the Invitation. The description is based on the best available information, but the Government makes no guaranty, warranty, or representation, expressed or implied, as to quantity, kind, character, quality, weight, size, or description of any of the property, or its fitness for any use or purpose, and no claim will be considered for allowance or adjustment or for rescission of the sale based upon failure of the property to correspond with the standard expected; this is not a sale by sample.

3. CONSIDERATION OF BIDS.-The Government reserves the right to reject any or all bids, to waive any technical defects in bids, and. unless otherwise specified by the Government or by the bidder, to accept any one item or group of items in the bid, as may be in the best interest of the Government. Unless otherwise specified, bids must be submitted on the basis of the unit specified for the item in the Invitation, and bids may be submitted on any or all items. In case of error in the extension of prices in the bid, the unit prices will govern.

4. BID GUARANTEE.-The bidder agrees that (1) the bid will not be withdrawn within the time specified for acceptance after the opening of bids (60 calendar days if no period be specified by the bidder), and will during that time remain firm and irrevocable, and that (2) the bidder will pay to the Government the purchase price of the property in accordance with the bid if accepted. If a bid deposit is required, the bid must be accompanied by said bid deposit. In the event of any default by the bidder or any failure by the bidder to comply with all terms and conditions of this contract, any deposit made by the bidder may be applied by the Government to any loss, cost, and expense occasioned to the Government thereby, including any loss, cost, and expense incurred in selling the property and including any difference between the amount specified in the bid and the amount for which the Government may sell the property, if the latter amount be less than the former. Deposits accompanying bids which are not accepted will be returned. Deposits of successful bidders may be applied against the contract price, and upon completion of the contract, any excess of the deposit will be returned to the bidder.

6. PAYMENT.-Payment of the balance of the purchase price, if a deposit has been made, or otherwise of the full purchase price, shall be made by cash, or by certified check, cashier's check, bank draft, postal or express money order, payable to the Treasurer of the United States. Unless otherwise specified by the Government, payment of the full purchase price, subject to any adjustment for variation in quantity or weight pursuant to Condition No. 8. must be made prior to the date specified for removal and prior to delivery of any property. If any such adjustment is necessary, then payment must be completed, unless otherwise specified by the Government, iminediately subsequent to adjustment. If the successful bidder fails to make full and final payment as herein. provided, the Government reserves the right, upon written notice to the successful bidder, to sell or otherwise dispose of any or all of such property in the Government's possession and to charge the loss, if any, to the account of the defaulting bidder. The original Purchaser will in no way be released from full compliance with the terms and conditions of the sale by his resale of the property.

6. TITLE. Title to the items of property sold hereunder shall vest in the Purchaser as and when, full and fimil payment is made, unless otherwise specified by the Government, and except that if the contract provides that loading will be performed by the Government, title shall not vest until such loading and such payment are completed. On all motor vehicles and motor-propelled or motor-drawn equipment requiring licensing, & certificate of release. Standard Form 97 (or a State certificate of title, if such a certificate of title has been issued to the Government), will be furnished for each such vehicle and piece of equipment.

7. DELIVERY AND REMOVAL OF PROPERTY.-The Purchaser shall be entitled to obtain the property upon vesting of title of the property in him, unless otherwise specified in the Invitation to Bid. Delivery shall be at the designated location. and the Purchaser shall remove the property at his expense. The Purchaser shall reimburse the Government for any damage to Government property caused by the removal operations of the Purchaser. If the Purchaser fails to remove the property within the specified time, the Government shall have the right to charge the Purchaser and collect upon demand a reasonable storage charge if the property is stored on premises owned or controlled by the Government, or store the property elsewhere for the Purchaser's account, and all costs incident to such storing, including handling and moving charges, shall be borne and paid by the Purchaser; in addition to the foregoing rights, the Government may, after the expiration of thirty (30) days after the date specified for removal, and upon ten (10) days' written notice (calculated from the date of mailing) to the Purchaser (which ten (10) days' written notice may, at the option of the

contracting oficer, be included eitner partly or wholly in the thirty (30) days specified above or may be in addition thereto), resell the property, applying the proceeds therefrom against the storage and any other costs incurred for Purchaser's account. Any details regarding removal of the property as may not be provided for herein, shall be arranged with the contracting officer, which arrangement shall be reduced to writing.

OR

8. ADJUSTMENT FOR VARIATION IN QUANTITY WEIGHT-Any variation between the quantity or weight listed for any item and the quantity or weight of such item tendered or delivered to the Purchaser will be adjusted on the basis of the unit price quoted for such item; but no adjustment for such variation will be made where an award is made on a "price for the lot" basis.

9. WEIGHING.-Where weighing is necessary to determine price bere under, the Purchaser, unless otherwise provided, shall arrange for, and pay all expenses of weighing material, including all switching charges incurred. In case of removal by truck, weighing shall be under the supervision of the Government and, at its option, on (a) Government scales. or (b) certified scales in the vicinity of the location of the property, or (c) certified scales in the vicinity of the Purchaser's establishment, or (d) other scales acceptable to both parties. When removal is by rail, weighing shall be on railroad track scales, or by other means acceptable to the railroad for freight charge purposes. Government-approved weighing shall govern payment.

10. RISK OF LOSS.-(1) After mailing notice of award, and prior to passage of title to the Purchaser, the Government will be responsible for the care and protection of the property and any loss, damage, or destruction__occurring during such period will be adjusted by the contracting officer. (2) After passage of title to the Purchaser, and prior to the date specified for removal, the Government's responsibility will be limited to the exercise of reasonable care for the protection of the property. (3) After the date specified for removal of the property, all risk of loss, damage, or destruction from any cause whatsoever shall be borne by the Purchaser,

11, LIMITATION ON GOVERNMENT'S LIABILITY.-In any case where liability of the Government to the Purchaser has been established. the extreme measure of the Government's liability shall not, in any event, exceed refund of the purchase price or such portion thereof as the Government may have received.

12. VERBAL MODIFICATIONS.--Any oral statement by any representative of the Government, modifying or changing any conditions of this contract, is an expression of opinion only and confers no right upon the Purchaser.

13. COVENANT AGAINST CONTINGENT FEES.-Purchaser warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee. excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Purchaser for the purpose of doing business. For breach of this warranty, the Government shall have the right to annul this contract without liability or at its option, to recover from the Purchaser the amount of such commission, percentage. brokerage, or contingent fee, in addition to the consideration herein set forth.

14. OFFICIALS NOT TO BENEFIT.-No Member of or Delegate to Congress or Resident Commissioner shall be admitted to any share or part of this contract or to any benefit that may arise therefrom, unless it be made with a corporation for its general benefit.

15. DISPUTES.-Except as otherwise specifically provided in this contract, all questions of fact involved in disputes arising under this contract shall be decided by the contracting officer, whose decision upon said facts shall be final and conclusive upon the parties, subject to written. appeal by the Purchaser within thirty (30) days to the head of the department or his duly authorized representative. whose decision on said facts shall be final and conclusive upon the parties hereto. In the meantime, the Purchaser shall diligently proceed with performance.

16. DEFINITIONS. (a) The term "head of the department" as used herein shall mean the head or any assistant head of the executive department or independent establishment involved, and the term "his duly authorized representative" shall mean any person or persons, other than the contracting officer, authorized to act for him, or any board set up in accordance with regulations.

(b) The term "contracting officer" as used herein shall include his duly appointed successor and his duly authorized representative.

INSTRUCTIONS TO BIDDERS

Envelopes containing bids must be sealed and marked in the upper left-hand corner with the name and address of the bidder, identification of the invitation, and the date and hour of opening.

Bids should be filled out in ink, indelible pencil, or typewriter. Bidder must show total amount bid on last sheet on which a bid is entered.

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ADDITIONAL TERMS AND CONDITIONS

A. Consideration of bids.-Bids on items listed by lot will be considered only on all or none basis.

B. The bidder warrants that he (it) has no interest, direct or indirect, in any other bid submitted in response to this invitation. If it should be determined that the bidder has such interest, then his (its) bid, together with such other bid or bids, shall be rejected.

The United States Criminal Code (18 USC/1001) makes it a criminal offense to willfully make false statements or misrepresentations to any Department or Agency of the United States as to any matter within its jurisdiction.

"This property has been screened against the known defense requirements of the Federal Government."

In the interest of paper conservation, only one (1) copy of invitation is furnished. If interested in the items listed, three (3) additional copies will be furnished upon request.

Bidders who do not respond to a minimum of three (3) solicitations will be dropped from the list automatically.

A 20 percent deposit of the total amount bid must accompany bid.
Location: Camp Drum, Watertown, N. Y.
For inspection of property, inquire at Bldg. T-3.

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Motor, Gen'l Elec; HP-30; 3 phase, 69 cycles, 208/416 volt,
1,170 RPM.

Starter: Resistance type, Monitor Controller, type 6635 RA;
Disconnect switch, 30 HP, 250 V; High & low pressure
gauges and mercoid high and low pressure cut-out controls
mounted on panel board..

4 Condenser: Ammonia evap., Mfg-Acme Industries Co. #800;
Capacity 392,000 BTU/hr; Temp-78° F. Wet bulb; Oper-
ating Pressure-185# PSIG; Prime Surface-Steel Pipe, Hot
Dip, Galv; CFM-11,000 Fan Motor-5 HP, 208 V, 3 phase,
60 cycles, Auto starter and fused safety switch, Westing-
house Elec. Mfg. Co.; Pump motor- HP, 208 V, 3 phase,
60 cycles, automatic starter and fused safety switch, Fair-
banks Morse Co.

5 Receiver: Ammonia, 10% inches diam., X 60 inches long fusion welded complete w/inlet, outlet, draín, purge and dual relief valves, liquid level gauge w/guard and stand.

6 Scale: trap, double extra heavy semi-steel complete w/fittings and connections.

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Cooler: Air Unit (meat cutting room); Vilter Artic Engineering Co., St 1,125 CFM-5,600; Cooling Coil-10 rows; 3 fins inch hot dipped, galv; capacity-211,500 BTU/hr at 20° Evap temp. Recirculated air inlet; ammonia surge tank. (Items 8 and 9 not listed) Coils: Ammonia expansion, 4 ceiling hung and 2 wall mounted; total 900 linear feet, 14-inch full weight steel pipe complete with all required supports and drip pans; complete assembly galvanized after assembly; each set of 2 ceiling and 1 wall coils connected as 1 unit with thermal expansion valve and 3 valve hand bypasses... 11 Piping: all ammonia, required to interconnect the component parts constructed to the following specifications; liquid and discharge mains-extra heavy black steel pipe; suction mains-standard weight blk. st. pipe; valves and fittings 14-inch and smaller, ammonis, screded type larger than 134-inch-4 bolt flanged type ammonia type design.. System B-34° F. storage rooms.-Compressors: Ammonia, Vilter Mfg. Co., 52-inch bore x 51⁄2-inch stroke vertical, 2 cylinder; lubrication-Manzell force feed serial Nos. 680-612 and 680-811; RPM 360; refrig. effect (140,000 BTU/hr at 15° F. suction): V-belt drive..

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Motors: 20 HP, 1,800 RPM, 3 phase, 60 cycle, 208V, Sterling
Electric Co..

Condenser: Evaporative (ammonia), Acme Industries, Inc.
Model 660, capacity-280,000 BTU/hr; temperature-78° F.
wet bulb, 96° F. condensing; operating pressure-185 PSIG;
rime surface-steel pipe hot dip, galv. CFM-9,000; fan
motor-3 HP, 3 phase, 60 cycle, 208V GE; switches-both
motors have automatic starters and fused safety switches ..'
41957 0-54 -3

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