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1. INSPECTION.-Bidders are invited and urged to inspect the property to be sold prior to submitting bide. 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 case 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 GovIf it is provided herein that the Government shall load, then ernment. "where is" means f. o. b. conveyance at the point specified in the Invitation. The description based is 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.

8. 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. bida 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 BID GUARANTEE.-The bidder agrees that (1) the bid will not be withdrawn within the time specified for acceptance after the opening of bids (60 calendar days if no period be specified by the bidder), and will during that time remain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 event of any the bid must be accompanied by said bid deposit. default by the bidder or any fallure by the bidder to comply with all terms and conditions of this contract, any deposit made by the bidder may be, appiled by the Government to any loas, cost, and expense occasioned to the Government thereby, including any loss, cost, and se 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 Deposits the property. If the latter amount be less than the former. Deposits accompanying bids which are not accepted will be returned. 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.

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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 removal and prior to delivery of any property. specified for If any such adjustment is necessary, then payment must be completed, unless other. wise specified by the Government, immediately subsequent to adjustment. If the successful bidder fails to make full and final payment se herein Didder. the Government reserves the right, upon written notice to the 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.

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6. TITLE Title to the Items of property sold hereunder shall vest In the Purchaser as and when full and final 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 On all not vest until such loading and such payment are completed. motor vehicles and motor-propelled or motor-drawn equipment requiring licensing. a certificate of release. Standard Form 97 (or a State certifi eate of title. If such a certificate of title has been lasued to the Government), will be furnlabed for each such vehlele and plece of equipment.

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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 aball move 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 falla to remov rent shall have the property within the specified time, the Government 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 rush storing, including handling and moving charges, shall be borne and bald by the Purchaser: In addition to the foregoing rights, the Government may, after the expiration of thirty (30) days after the date specifled for removal, and upon ten (10) daye written notice (calculated from the date of mailing) to the Pur. ebaser (which ten (10) days' written notice may, at the option of the

contracting officer, be included either 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 costa 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.

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8. ADJUSTMENT VARIATION IN QUANTITY OR 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 hereunder, 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 of the Government at its 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 la 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 auch 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.

18. COVENANT AGAINST CONTINGENT FEES.-Purchaser warrante 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 Aide 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 meantinie, the Purchaser shall diligently proceed with performance.

18. 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 set 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.

Bida 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.

10-60068-1 ☆ U.S. GOVERNMENT PRINTING OFFICE 1952-0-212435

Reverne of Standard Form 114
August 1950 Edition

ADDITIONAL PROVISIONS

17. Deletions.-Conditions No. 4 (Bid Guarantee), No. 5 (Payment), and No. 8 (Adjustment for Variation in Quantity or Weight) are hereby deleted.

18. Bid guarantee and liquidated damages.-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 the bid if accepted. If a bid deposit is required, the bid must be accompanied by said deposit. If after award the purchaser fails to pay the balance of the purchase price, fails to remove the material or otherwise fails to perform any of its obligations he will thereby lose all rights, title and interest in the material

hereunder, and the Government may, at its election, retain the material and may retain from any amount paid by the purchaser, as liquidated damages a sum equal to twenty-five percent (25%) of the purchase price plus any accrued charges hereunder. The balance, if any, shall be remitted to the purchaser.

19. 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, within (5) days after notice of award. Payment of the full purchase price, subject to any adjustment for variation in quantity or weight pursuant to condition No. 20, must be made prior to delivery and removal of any property. If any such adjustment is necessary, then payment must be completed, unless otherwise specified by the Government, immediately subsequent to adjustment.

20. Adjustment for variation in quantity.-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 items; but no adjustment for such variation will be made where an award is made on a "price for the lot" basis. When property is sold on a unit price basis, the Government reserves the right to vary the quantity tendered or delivered to the purchaser by 10%. If the Government tenders or delivers a quantity up to 10% in excess of that stated in the Invitation to Bid, the Purchaser agrees to accept such quantity and pay the Government therefor at the unit price set forth in this contract. If the Government tenders or delivers a quantity less than that stated in the Invitation to Bid, the Purchaser agrees to accept the quantity tendered or delivered unless the variation exceeds 10% of the quantity stated in the Invitation to Bid. In such event of a shortage the Government will refund the Purchaser the difference between the quantity paid for and the quantity delivered, calculated upon the basis of the unit prices set forth in this contract.

21. Loading.-The Government agrees to load f. o. b. carrier at the U. S. Naval Advanced Base Supply Depot, Port Hueneme, California, in carload or truckload lots and in one operation only unless the material sold hereunder is ordinarily shipped "less than carload lots"; in the latter case the Government agrees to load f. o. b. carrier as the Purchaser's shipping orders may direct. Any expenses over and above those customarily required for loading f. o. b., whether it be carload or "less than carload lots", shall be for the account of the Purchaser.

22. Interest warranty.—The Purchaser warrants that he (she) is not an officer or enlisted member of the United States Navy, or a member of the imme diate household of such officer or enlisted member, and further, that he (she) is not an officer or employee of the United States Navy, nor an agent for any of the above mentioned persons.

NOTE.-Bid deposit must be in form of postal or express money order, or cashier's or certified check, or cash, or any combination thereof. Bid bonds are not acceptable.

"IMPORTANT NOTICE"

"Sales and use tax liability.”—Purchaser of this property from the Government may be subject to payment of a California sales and/or use tax. The United States Government is not responsible for collection of State taxes. Purchaser may obtain information from nearest office of the California State Board of Equalization. California sales and/or use tax officials are permitted

to examine all GSA sales records of property to determine tax liability.” Prospective purchasers are hereby advised that it is not necessary to notify this office in the event no bid is submitted. Names are retained on our mailing list until the next periodic revision. No names are removed without notifying firms or individuals.

Lot #1 (962612)

1 Lot Cable: Telephone, field type, #17 AWG, stranded conductor (4 steel, 3 copper) twisted pair. Rubber insulated, Impregnated cotton braid jacketed.

(Approximately 8,625,812 feet) Apparently Un-used-Poor

Price bid $

per lot NOTE.-Bidder's failure to submit the entire sales catalog may be considered as sufficient reason for rejection of the bid.

NOTE.-An acceptance of Bid will be mailed to the successful Bidder or Bidders. It is requested that each successful Bidder await receipt of such acceptance before contacting the Disposal Office concerning payment of balance or delivery of material.

NOTE. In the event two or more bids are tied as the high bid, award will be decided by a public drawing. The tied high bidders will be advised, by letter, of the time and place established for the public drawing, and at the appointed hour the drawing will be made by a disinterested party. The contracts will be awarded subsequently.

Mr. BALWAN. Invitation B43-54, issued October 8, was opened October 29, that was last week, covering the sale of 82 million feet of telephone cable, field type, unusued, poor condition.

Could you tell us something about that sale? Did it go as scrap? Could someone tell us how it got to be surplus?

Lieutenant STUTHEIT. It was surplus. However it went for just a little better than scrap price. $3,116.16.

Mr. BALWAN. What was your acquistion cost on it?
Lieutenant STUTHEIT. Approximately $170,000.

Mr. BALWAN. Who can tell us about where this cable came from? Commander PABST. I couldn't tell you where the cable came from without searching the records of the control division.

Mr. FORTIER. It is quite possible that cable was here since the end of the war and determined to be unusable. Since the war we have had no requirement for it, no use for it, except it is probably in our mobilization requirements. It was one that had become unusable through age. Mr. BALWAN. In talking to one of our GSA officials, I mentioned the military's dissatisfaction sometimes with the length of time the GSA will hold on to property when it is declared excess by the miltiary, and he said they had a good reason for it and they gave as an example some telephone cable, which I believe was at Hueneme. He said they held on to it for 3 or 4 months and finally found someone who wanted it. That is why GSA feels a little jealous of its right for holding or screening the cable.

Mr. HOLIFIELD. It might interest you to know that about 2 years after the war I had a grammar school in my district that was badly in need of wiring; in fact it was not in use for lack of wiring. I tried to the best of my ability to get wiring for them, but was told on every hand of the shortage of such cable.

Lieutenant STUTHEIT. This particular lot was telephone cable, field type, which has no commercial value at all at the present time.

Mr. HOLIFIELD. The type of wiring I referred to was a different wire, but this similar thing came to my attention, and I found that many millions of feet of wire had been offered for sale as surplus. Although it was considered unusable by the Navy, the school still was willing to use it in order to get the lights, so the school could be utilized.

Mr. BALWAN. I have no further questions, except that I do want to say that we submitted to the Navy an agenda requesting various statistics and materials which we would like to have you explain to us. Captain CHURCH. I would like to get into the record the fact that the agenda arrived this morning. We would be very happy to provide the data desired, but it will take some time.

Mr. RIEHLMAN. Have you ever considered adopting the Air Force's spot-bid sale method?

Commander PABST. We had testimony on that, and they claimed that they had a more successful way than the sealed-bid way.

Mr. THOMAS. I think on some lots it would be.

Mr. RIEHLMAN. We found that to be true at Warner Robins. They found that in smaller lots they could get more bidders interested when they didn't have to tie up their money, if they could go in and see the lots and put their bids in without the deposit.

Mr. HOLIFIELD. It seems to me that is one the Navy should experiment with.

Mr. RIEHLMAN. I think it would be something that the personnel here should take under consideration, that spot-bid sale method where bidders don't have to make the deposit.

I would be pleased to know that they were taking under consideration an auction sale, but there is a question as to whether you would get more money. There are auctioneers near here who would be anxious to experiment with this type of sale, and they would have on their list people who are specialists who might never get on your mailing list.

I leave that as suggestions.

Mr. THOMAS. I agree with Commander Pabst that they should have a representative list for sale, because it has to be worthwhile to attract people from long distances to come here.

Mr. RIEHLMAN. The items which you are going to have here are much more salable than many of the items which we saw being auctioned at Bayonne.

Mr. BALWAN. I notice in working with the Air Force and with the Army and Navy there is very little exchange of information.

Witness the spot-bid sale, which is strictly Air Force, and the requirements concerning deposits. The Navy usually says that they may not use a bond, whereas the Army and Air Force permit a bond in lieu of deposit, which makes it less difficult.

If you made it uniform across the board, it would seem to help, because many people are trying to buy from the Army and Air Force, too.

Have you had bad experience with bonds?

Lieutenant STUTHEIT. I presume so. It is not in the BuS and A Manual.

Mr. BALWAN. We found that the Air Force is selling all its usable material on spot-bid sales requiring no deposit, and the only thing going by sealed bids requiring deposit is scrap material.

Commander PABST. I think as prices go up or down they are going to have trouble with deliveries.

Mr. BALWAN. They have had very little trouble.

Going back to the old rollup days following the war, they had informal and casual spot sales. By that I mean they

May I ask Mr. Lane at this point to describe some of the things he saw here at Hueneme?

Mr. LANE. This War Assets Administration spot-bid sale was different from the Air Force and similar to what the commander just said. They would have a period of inspection in which the base would be open, and the buyers could come at any time. Then you put in your bid in writing without deposit, the bids were opened in numerical order before all the bidders. All bids were read, that is, the low bidder on up to the high bidder. Obviously the top bidder received the award, and he was notified to go to the cashier and pay. The cashier accepted his check in full if it was certified, or cash, and a bill of sale

was issued to him, and he had 24 hours to get equipment off the lot. The bookkeeping followed later.

Mr. RIEHLMAN. I have no further questions. Are there any officers who would like to make any contributions?

Commander PABST. I would like to say something in regard to disposal. On this large program, which is approaching some fifty-odd million dollars' worth of equipment which will be processed through Hueneme, we will have to increase our disposal department. How much, we don't know yet, but at the present moment we are handling what we have with no great backlog, but with Operation Fireball plus the additional millions of dollars worth of Y and G equipment, we will have to augment our department in order to get out more materials.

Mr. RIEHLMAN. Are you content with the present system-sealed bids?

Commander PABST. Personally, I am not. I would like to try the Bureau's suggestions that we have an auction here. I would like to accumulate a minimum of 15 lots in order to hold this auction.

Mr. RIEHLMAN. What does that mean in terms of dollars?
Commander PABST. That is pretty academic.

Mr. RIEHLMAN. I was trying to get at the reason you said 1,500 lots. Is that just a matter of judgment?

Commander PABST. It is a matter of personal judgment to bring in as many people as possible for a sale lasting several days. We would bring in people from all over the United States. We would want to make the sale worth while in order to bring in people from the East and North. I think it would be well to attempt a sale of that type. I think we would better our percentage of return.

Mr. HOLIFIELD. If you did that, would you hire a professional firm to do the job and leave it up to them to contact buyers rather than depending upon your own lists here?

Commander PABST. They would undoubtedly have other lists which they would augment and would work with us.

One more thing which I would like to say, on small lots I would suggest that we return to spot-bid sales, where the supply officer can walk down the line and say "how much will you give me" for different items.

Mr. BALWAN. You understand that the "spot bid" term the Air Force uses means that they are getting rid of many of the items by a catalog similar to this, plus the added attraction of not having the requirement of having a bid deposit. It does not tie the money up.

I am curious as to why the Navy has not tried that. That is strictly an Air Force technique.

Captain CHURCH. We studied here sometime back proposals which we felt would expedite excess disposal here. We made certain recommendations to BuDocks, which they now have under consideration. I don't know what they are going to do with them.

There were three general recommendations:

The first I am sure they will approve-the whole program would get high priority and full support.

Second, lift the $100 limitation to $1,000 on items which must be reported to central authority.

Third, we should be given permission to use our own determination as to which items should be locally screened for disposal. I recognize

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