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"Bids shall bo mado for any er-8 the tiros listed above Awards All bo mado to the highost acceptable or for the quantity bid for, the balanco be coring available to the no higies acceptable bidder, and so on, until all of the tires have been awarded. Thy right is reserved to award any bid or less than the quantity bid for loss Fo bidder specifics otherwise)f tho fall quantity bid for by him is not lable on his bid is reached. In addition the Government reservos the right to make avard in response to any bid received for the entiro quantity of lot the ovent such a bid is oqual to or in excess of the total of the highest acceptable individual bid rocoived for css than the ontiro quantity."

"A bidder will not be permitted to select cr pick out individual items in a lot So as to have a better choice than other bidders."

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Awards will be

"Bids shall be made for any or all of the tires listed above made to the highest acceptable bidder for the quantity bid, for, the balance bet Coming available to the next highest acceptable bidder, and so on, until all of the tires have been awarded. The right is reserved to award any. bidder less than the quantity tid for unless the bidder specifies otherse the full quantity bid for by him is not available when his bid is reached. In addition the Govern ment reserves the right to make award in response to any bid received for the entire quantity of lot in the event such a bid is equal to or in excess of the total of the highest acceptable individual bid received for less than the entire quantity".

"A bidder will not be permitted to select or pick out individual items in a lot so as to have a better choice than other bidders

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des catalog may be considered as

NOTE: Eidder's failure to submit the entire sufficient reason for rejection of the bid.

NOTE: An Acceptance of Bid will mailed to the successful Bidder or Bidders. It is requested that cach sugo ssful Fideer await receipt of such accept+ ance before contacting the Disposal office concerning payment of balance or delivery of materia

NOTE: It is suggested that loveig bidders act through a local representative
in the United States. The Department of the Navy does not warrant that
material sold be exported, and it is the responsibility of the
bidders to comply with applicable regulations of other Government
departments including export restrictions.

NOTE: IN THE EVENT TWO OR MORE BILS ARE TIED AS THE HIGH PID, AWARD WILL BE
DECIDED BY HUBLIC DRAWING. THE TALD HIGH BILLERS WILL EIVISED, BY
LLTTOR, OF TH: TIME..ND PL..CE ESTABLISHED FOR THE PUBLIC DRAWING, AND
AT THE APPOINTED HOUR THE DRAWING WILL BE MADE BY A DISINTERESTED PARTY.
THE CONTRACTS WILL BE WARD SUPSEQUENTLY.

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Mr. BALWAN. On Invitation B-37-54, issued October 15, you sold about 1,400 tires of various sizes and shapes which are described as not used-condition: fair.

Lieutenant STUTHEIT. Acquisition cost: $91,350.10. Returns have not been totaled, since the sale was held yesterday.

Mr. BALWAN. Can someone tell us how this surplus was generated? Commander PABST. They were all over age.

Mr. BALWAN. Do you mean they were all new unused tires?

Commander PABST. They were not used. They were from 5 to 8 years old, or more.

Mr. BALWAN. Are they stock items or were they on equipment here? Commander PABST. They were stock items.

Mr. BALWAN. Was new procurement made of the same items during this period?

Commander PABST. Usable tires were redistributed to other points, but not over-age tires. When they reach 5 years of age they are not usable.

Mr. BALWAN. You cannot use or issue them?

Commander PABST. That is correct.

Mr. BALWAN. Was new procurement made when these could have been used?

Commander PABST. Not to the best of my knowledge, and I know of no new procurement on tires where these could have been used.

Mr. RIEHLMAN. If you have these things in stock and they can be used before they become overage, it would certainly be wrong to reorder this same item.

Commander PABST. Y. and D. S. O. did use some of these, and these are what is left, mostly in obsolete sizes.

Mr. BALWAN. Was any attempt made to find a purchaser for this besides your regular mailing of catalogs to people on your mailing lists?

Lieutenant STUTHEIT. No, sir. Not to others than those on the mailing lists?

A mailing list is made up from a sheet we have which any individual may fill out.

Mr. BALWAN. Do you develop much interest?

Lieutenant STUTHEIT. I think we have considerable interest. We have replies from many people outside of the State of California.

Mr. BALWAN. May we ask if you cover that complete list on these tires, or did you send that to a specialized list?

Lieutenant STUTHEIT. Our list has 48 categories.

Mr. BALWAN. In other words, you don't notify the whole list?
Mr. MORRIS. How large are your category lists?

Mr. BALWAN. Take this on tires-how many people were mailed a catalog? Can you run up your list for us?

Lieutenant STUTHEIT. I have one I can give you right now, broken down into the 48 categories.

Mr. BALWAN. That would have the list of those people to whom the tires went?

Mr. HOLIFIELD. I think that would be of interest to the committee and would give us an indication of how you give your orders.

Lieutenant STUTHEIT. It is hard to say without the record. My bidders are interested in all categories.

Mr. RIEHLMAN. I think it would be very interesting to know how many bids you have on tires and how many on the fork trucks. Lieutenant STUTHEIT. On tires, 61 bids.

Mr. BALWAN. What kind of firms were they?

Lieutenant STUTHEIT. Most of them are tire firms, tire dealers. Mr. BALWAN. Was that all on a basis of the right to bid for a small number of tires or for the whole lot?

Lieutenant STUTHEIT. We had 60 lots to this and it contained 3 alternatives. It was broken down into 57 other lines.

Mr. HOLIFIELD. Bidders could bid for small lots? What priorities do they have? The small man who bids, how much preference do you give him over a bidder for the whole lot?

Lieutenant STUTHEIT. None whatsoever. It is the high bidder who gets the award.

Mr. RIEHLMAN. What if a person came in and wanted to bid on 30 or 6 tires?

Lieutenant STUTHEIT. He would have to take all 6.

Mr. RIEHLMAN. But he wouldn't have to bid on any of the other items? What if a man bid on all the lots and his total bid was higher than the separate bids. Would you sell all that to him?

Lieutenant STUTHEIT. He would only be able to do that on this alternate bid, since the other lots contain an alternate.

If the bid on the 58 is higher than the high bids on the other 57 lots, the bid on the 58 would get it. This has turned out where there will be numerous awards. There is also a provision for splitting an award, giving one bidder part of a lot.

Mr. RIEHLMAN. May I ask you on the fork-lift program, how did you accumulate all these? Today when we were driving around there was quite a group, and there is a possibility they will be declared surplus. Where did you accumulate them?

Commander PABST. Fork-lift trucks were accumulated right here on the station and were replaced by new units when the repair costs became too constant and too high. We figured they had lived out their practical life.

Mr. BALWAN. Is that a replacement sale?

Commander PABST. Yes, it is. (Lieutenant Stutheit gave Mr. Balwan a complete list of bidders.)

Mr. BALWAN. I am interested in this list because it is a very passive way of selling. These lists are made out from people who write you asking that they be put on the mailing list?

Lieutenant STUTHEIT. We get telephone books from various places, and the employees go through them and pick out the various firms listed and we send them one of our lists.

Mr. BALWAN. What is your procedure for sending catalogs?

Lieutenant STUTHEIT. The bidder stays on the list until we conduct a verification of the list. We make every effort to get out as many catalogs as we can. I now have the abstract of the bids. (Read names of the bidders.)

Mr. BALWAN. Who was the big winner on this tire sale?

Lieutenant STUTHEIT. I don't understand what you mean by big winner.

Mr. BALWAN. Who got the bulk of the tires here?

Lieutenant STUTHEIT. We haven't recapitulated, but all we have circled in red indicates those that are tentatively high.

Mr. BALWAN. The East Bay Tire Co. apparently was the successful bidder on several lots. What do you mean by tentatively high? Lieutenant STUTHEIT. Until we can check this to be sure there are

no errors.

Mr. BALWAN. This sale was opened on November 5 and they have to wait a certain number of days in case mail was missent to some other station or something like that. How long do you usually wait?

Lieutenant STUTHEIT. We always wait 24 hours, and in some cases we wait 48 hours before we have all the information to compile.

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Bealod bida, in Original only

(PST)

-INVITATION

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subject to the General Sale Terms and Conditions on the reverse heroof, and any special conditions, set forth herein, will be received atUSN Advanced Base Supply Depot, Port Hueneme, until 100%'clock

Hated below and on continuation sheets

29 October

19_53, for purchase and removal of Governmet died property

TIME

RACE WHELLE CIDS WILL BE PUCUCLY OPENED RI. 148 ADM. BLDG.
USN ADVANCED BASE SUPPLY DEPOT, PORT HUENEE, CALIF. 1:00 P..

TITLE

DATE OF BIO OPENING

29 October 1953

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CONDITION OF MATERIAL: Used

8:30 am and 3:30 p.m.

The property described herein may be inspected between the hours of
Monday thru Friday. For inspection of material apply at Gate #5

U.S.N. Advanced Base Supply Depot, Port Huenero, California, For further inform
ation contact Disposal Branch, telophone Hunter 3-2481 Ertension 220
A bid deposit of 25%
percent of the total amount bid, in the form of portal 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 15 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.

BID

B-43-54

DATE OF D 29 October 153

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 Js enclosed.

eet opposite cach item. Bid deposit in the amount of 8.

BIDDER REPRESENTS: (Chal appropriate bozus)

(1) That the aggregate number of employees of the bidder and its affiliates is

500 or more, less than 500, (2) That he has, has not, employed or retained a compar or person other than a full-time employee) to solicit or secure this contract, and agrees to furni-b information relating thereto as requested by the contracting officer.

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