Page images

schedules thereof duly prepared and, together with the statement of the proposed action of each Department and Government establishment thereon, shall be submitted to to be submit

ted to . a board, consisting of one of the Assistant Secretaries of the Treasury and Interior Departments and one of the Assistant Postmasters-General, who shall be designated by the heads of said Departments and the Postmaster-General respectively, at a meeting to be called by the official of the Treasury Department, who shall be chairman thereof, aud said board shall carefully examine and compare all the proposals so submitted and recommend the acceptance or --acceptance or rejection of any or all of said proposals. And if any or all rejection. of such proposals shall be rejected, advertisements for proposals shall again be invited and proceeded with in the same manner. SEC. 2. That the act entitled "An Act to amend Section Act approved

April 21, 1894. thirty-seven hundred and nine of the Revised Statutes relating to contracts for supplies in the Departments at Washington," approved January twenty-seven, eighteen hundred and ninety-four, be, and the same is hereby, so amended that the provisions thereof shall apply only to advertisements for proposals for fuel, ice, stationery, and other miscellaneous supplies to be purchased at Washington for the use of the Executive Departments and other Government establishments therein named; and no advertisements made or contracts awarded or to be awarded thereon since January twenty-seven, eighteen hundred and ninety-four, in accordance with the laws in force prior to said date, shall be declared to be illegal or invalid for noncompliance with said law of January twenty-seventh, eighteen hundred and ninety-four.

SEC. 3710. Whenever proposals for supplies have been opening bids. solicited, the parties responding to such solicitation shall Res., v. 16, p. 246. be duly notified of the time and place of opening the bids, and be permitted to be present either in person or by attorney, and a record of each bid shall then and there be made. SEC. 3714. All purchases and contracts for supplies or

the military or services for the military and naval service shall be made

naval service, by or under the direction of the chief officers of the Depart-how controlled. ments of War and of the Navy, respectively. And all 3,v.1, p.610; Feb. agents or contractors for supplies or service as aforesaid 27: 1877, v. 19, p. shall render their accounts for settlement to the accountant of the proper Department for which such supplies or seryices are required, subject, nevertheless, to the inspection and revision of the officers of the Treasury in the manner before prescribed.

SEC. 3718. All provisions, clothing, hemp, and other Naval supplies materials of every name and nature, for the use of the Navy by contract. se.rcepting ordnance, gunpowder, or medicines, or the supplies which it may be necessary to purchase out of the United States

Contracts for


See sec. 3709.
See note 9.

See sec. 3718.

Note 9.-The acceptance of the proposition of a bidder creates a contract of the same force and effect as if a formal contract had been written out and signed by the parties. Otto, 93, 242; C. C., XVII, 92; see Op., XV, 648, as to time in which bids may be withdrawp.)

When a party furnishes sureties and binds himself for the performance of his bid, if accepted, the contract becomes mutual and binding from the moment of its accept

Mar; 31843,- for vessels on foreign stations; bunting, cheese, things contra1854, s. 1, $. 16, p. band of war, preserved meats, pickles, butter, and desiccated 5858. Sept. 28, vegetables, flour, fuel, and materials for boilers. Sections 513 ; A pr. 17,1866, 3721, 3726, 3727, 3728, 3729, and acts of June 14, 1878, and

See act or Fine March 3, 1881), and the transportation thereof, when time 30, 1890, amend will permit, shall be furnished by contract, by the lowest ing this section. bidder, as follows: In the case of provisions, clothing,

hemp, and other materials, the Secretary of the Navy sball advertise, once a week, for at least four weeks, in one or more of the principal papers published in the place where such articles are to be furnished, for sealed proposals for furnishing the same, or the whole of any particular class thereof, specifying the classes of materials and referring bidders to the several chiefs of bureaus, who will furnish them with printed schedules, giving a full description of each and every article, with dates of delivery, and so forth. In the case of transportation of such articles, he shall advertise for a period of not less than five days. All such proposals shall be kept sealed until the day specified in such advertisement for opening the same, when they shall be opened by or under the direction of the officer making such advertisement, in the presence of at least two persons. The person offering to furnish any class of such articles, and giving satisfactory security for the performance thereof, under a forfeiture not exceeding twice the contract price in case of failure, shall receive a contract for furnishing the

same. June 14, 1878. That on and after the passage of this act, the Secretary 20 Stat. L. 253. of the Navy be, and he is hereby authorized to purchase at 1892-5, p. 205.

the lowest market price, such plate iron and other material Materials for as may enter into the construction of steam boilers for the Navy may

be Navy without advertising for bids to furnish the same: purchased with

Provided, That he shall cause to be sent to the principal out advertise

dealers and manufacturers of iron and such other materials R.S., s. 3700, as may be required specifications of the quality description -notices of, to and character of such iron and materials so required: principal deal.

And provided further, That such plate iron and materials -subject to test. shall be subjected to the same tests and inspection as now

provided for and which inspection and tests shall be made publicly and in presence of such bidders or their authorized agents as may choose to attend at the making thereof.


R. S.,



R.S., 8. 4430.

ance, although a formal written contract is to be subsequently executed. (C. C., vol. I. 192.)

A formal notice to a bidder of the acceptance of his bid and of the award of the contract to him is beyond recall, and binding on the United States as a completed obligation. An award thus made is in the nature of a preliminary contract. (Op., XV, 226.)

Head of Department lias power in advertising for proposals to reserve "the right to reject any and all bids it, in his judgment, the interests of the Government require it. Right of lowest bidder perfect against others, but does not exclude the counter right of the head of the Department of considering, in the erest of the Govern. ment, the whole subject, and deciding whether it be fit that any bid should be accepted. (Op., XIV, 682.)

The statutory advertisement for proposals does not enlarge, control, or change the express terms of the contract, and is to be considered as merged therein. (C.C., v, P. 416.)

The advertisement and the proposals in response thereto do not form a part of the subsequent contract, and can not be admitted to contradict or vary the terms thereof. (C.C., VIII, 501.)

Under a contract for a certain quantity of an article, or more if required, a Depart. ment is not precluded from advertising for new proposals and awarding a contract for a superior article. Not obligeil to receive more than the specified quantity. (Op., XVI., 183; see also Op., X, 93.)


It shall be the duty of the Bureau of Provisions and Mar. 2, 1889. Clothing to cause property accounts to be kept of all the 25 Stat. L., 809. supplies pertaining to the naval establishment, and to report 678PP. R. S., annually to Congress the money value of the supplies on Bureau of Prohand at the various stations at the beginning of the fiscal Clothing in Nary year, the dispositions thereof, and of the purchases, and the to keep accounts expenditures of supplies for the year, and the balances hand and report

to Congress. remaining on hand at the end thereof.

R. S., 8. 419.

Feb. 14, 1879,

ch.68, par.1, ante, Bureau of Provisions and Clothing, hereafter to be called July 19, 1892.

27 Stat. L., 236. Bureau of Supplies and Accounts.

Vol. 2, Supp. R. S., p. 40.

Bureau of Sup. plies and AC

p. 216.


See note 10.

[ocr errors]

Laws in force.
See note 11.

. 283,

And all laws now in force relating to the Bureau of Pro Bureau of Supvisions and Clothing shall now and hereafter apply to the counts. Bureau of Supplies and Accounts.

And the Secretary of the Treasury is hereby authorized Mar. 3, 1893. and directed to cause general account of advances to be Permanent na. charged with the sum of two hundred thousand dollars, val supply, fund which amount shall be carried to the credit of a permanent 3673, 3676. naval-supply fund to be used under the direction of the Sec. June 19, 1878, retary of the Navy in the purchase of ordinary commercial R. S.,194): Mar.2, supplies for the naval service, and to be reimbursed from 10 (1 Supp. RS.; the proper naval appropriations whenever the supplies 000).

20 A. G. Op.. purchased under said fund are issued for use.

And section thirty-seven hundred and eighteen of the Length of time Revised Statutes of the United States, as amended by for supplies. the act of July nineteenthi, eighteen hundred and ninety. Se o Sol. 2, two, is hereby amended so as to read : “twice a week for Supp. R. S., p. two weeks or longer, not to exceed four weeks, or once a See notes 12 and week for two weeks or longer, not to exceed four weeks, in 13. the discretion of the Secretary of the Navy." *

That no contract for the purchase of gun steel or armor for the Navy shall hereafter be made until the subject- vertised for.

R.S., secs.3709, matter of the same shall have been submitted to public competition by the Department by advertisement.

p. 617.

[ocr errors]


Gun steel and armor to be ad.

3714, 3718.

See notes 14 and 15.

Note 10.–This appears in the appropriation act (27 Stat. L., 243) as a heading-not Form explain. a complete sentence-followed by the appropriations for the Bureau for the year. ed.

Note 11.-The lawa relating to this Burean are: R.S., sec. 419, Bureau authorized ; Laws relating R. S., sec. 416, employees; R. S., secs. 421, 425, qualification of chief; R. S., secs. 420, to Bureau. 430, 3666, 3676, duties; R. S., secs. 1471, 1472, 1473, 1565, rank and pay of chief; R. S., sec. 1436, former chief exempt from sea duty; 1878. June 19, ch. 312 (1 Supp. R. S., 194), "general account of aivances authorized ; 1879, Feb. 14, ch. 68, par. 1 (1 Supp. R.S., 216), "small stores fund” authorized; 1889, Mar. 2. ch. 371 (1 Supp. R. S., 678), accounts to be kept and reports made; 1890, June 30, ch.640, par. 2 (1 Supp. R. S., 762), clothing and small stores funds consolidated; 1891, Mar. 2, ch. 494, par. 1 (1 Sapp. R. S., 900), supplies to be naval and not bureau supplies; 1893, Mar. 3, ch. 212, par. 2, p. 130, pay, miscellaneous," to be credited with certain receipts.

Note 12.-R. S., sec. 3718, provides that materials for the Navy shall be furnished by contract, to be advertised once a week, for at least four weeks."

By 1890, June 30, ch. 640, par. 3 (1 Supp. R. S., 762), this was changed to "twice a week for at least two weeks or longer, not to exceed four weeks, in the discretion of the Secretary of the Navy."

By 1892, July 19, cb. 206 (27 Stat. L., 243, 244), this was changed to "twice a week for two weeks or longer, not to exceed four weeks, or once a week for four weeks, in the discretion of the Secretary of the Navy."

These are all superseded by the provision appearing above.

Note 13.-This provision has appeared in the naval appropriation acts of 1891, Mar. 2, ch. 494 (26 Stat. L., 813), and in 1892, July 19, ch. 206 (27 Stat. L., 219).

Note 14.- This provision supersedes a similar provision in the appropriation act
of 1892, July 19, ch. 206 (27 Stat. L., 236).

Note 15.-- This provision is repeated from the naval appropriation acts of 1891,
Mar. 2, ch. 49! (26 Stat. L., 815), aud 1892, July 19, ch. 206 (27 Stat. L., 231).


Guarantee bid.

No fees


ernment for the

SEC. 3719. Every proposal for naval supplies invited by Ang. 10, 1846, the Secretary of the Navy, under the preceding section, 8.6, v. 9, p. 101.

shall be accompanied by a written guarantee, signed by one chargeable or more responsible persons, to the effect that he or they against the Gov.

undertake that the bidder, if his bid is accepted, will, at service of obtain such time as may be prescribed by the Secretary of the of sufficiency of Navy, give bond, with good and sufficient sureties, to furbondsmen. 19 A. nish the supplies proposed; and no proposal shall be conG. Op., p. 181. See note 16. sidered, unless accompanied by such guarantee. If, after

the acceptance of a proposal, and a notification thereof to the bidder, he fails to give such bond within the time prescribed by the Secretary of the Navy, the Secretary shall proceed to contract with some other person for furnishing the supplies; and shall forth with cause the difference between the amount contained in the proposal so guaranteed and the amount for which he may have contracted for furnishing the supplies, for the whole period of the proposal, to be charged up against the bidder and his guarantor; and the same may be immediately recovered by the United States, for the use of the Navy Department, in an action of

debt against either or all of such persons. Record of bid SEC. 3720. All such proposals for naval supplies shall be and report to Congress.

preserved and recorded, and reported by the Secretary of Mar. 3, 1843, v. the Navy to Congress at the commencement of every regu5, p. 617.

lar session. The report shall contain a schedule embracing the offers by classes, indicating such as have been accepted. In case of a failure to supply the articles or to perform the work by the person entering into such contract, he and his sureties shall be liable for the forfeiture specified in such contract, as liquidated damages, to be sued for in the name

of the United States. Purchases that SEC, 3721. The provisions which require that supplies

shall be purchased by the Secretary of the Navy from the tising

lowest bidder, after advertisement, shall not apply to ordMar. 3, 1845, s. nance, gunpowder, or medicines, or the supplies which it BY: 5, 794; may be necessary to purchase out of the United States for v. 9, p. 172; Aug vessels on foreign stations, or bunting delivered for the use 3: 1848, 22. of the Navy, or tobacco, or butter or cheese destined for 1865, 8. 7, v. 13, p. the use of the Navy, or things contraband of war. Con467. See sec. 5503 tracts for butter and cheese for the use of the Navy may be co same title, made for periods longer than one year, if, in the opinion of 23. A. G.Op., P. the Secretary of the Navy, economy and the quality of the

Tobacco to be ration will be promoted thereby. The Secretary of the advertisement. Navy may enter into contracts for tobacco from time to See act of March time, as the service requires, for a period not exceeding

four years; and in making such contracts he shall not be restricted to the lowest bidder, unless, in his opinion, economy and the best interests of the service will be thereby

promoted. What bids may SEC. 3722. The chief of any Bureau of the Navy Departbe rejected.

ment, in contracting for naval supplies, shall be at liberty to reject the offer of any person who, as principal or surety, has been a defaulter in any previous contract with the

may be without

made adver

See sec. 3718.



Note 16.--This opinion was rendered upon the law requiring the Secretary of the
Navy to ascertain the sutticiency of sureties on bonds of pay-officers,


Navy Department. Parties who have made default as principals or sureties in any former contract shall not be received as sureties on other contracts; nor shall the copartners of any firm be received as sureties for such firm or for each other; nor, in contracts with the same Bureau, shall one contractor be received as surety for another. Every contract shall require the delivery of a specified quantity, and no bids having nominal or fictitious prices shall be considered. If more than one bid be offered by any one party, by or in the name of his or their clerk, partner, or other person, all such bids may be rejected; and no person shall be received as a contractor who is not a manufacturer of, or regular dealer in, the articles which lie offers to supply. All persons offering bids shall have the opening bids. right to be present when the biils are opened and inspect 2, v. 12, p. 828. the same.

SEC. 3723. No chief of a Bureau shall make any contract Contracts for supplies for the Navy, to be executed in a foreign coun. for the Narys try, except it be on tirst advertising for at least thirty days. Mar. 3, 1877, s.

3, v. 16, p. 535. in two daily newspapers of the city of New York, inviting sealed bids for furnishing the supplies desired; which bids shall be opened in the presence of the Secretary of the Navy and the heads of two Bureaus; and contracts shall in all cases be awarded to the lowest bidder; and pay. inasters for the Navy on foreign stations shall render, when practicable, with their accounts, an official certificate from the resident consul, or commercial or consular agent of the United States, if there be one, to be furnished gratuitously, vouching that all purchases and expenditures made by the payınasters were made at the ruling market prices of the place at the time of purchase or expenditure.

SEC. 3724. Where articles are advertised and bid for in Rejection of exclasses, and in the judgment of the Secretary of the Navy Coduly 4, 1804, s. any one or more articles appear to be bid for at excessive or 7, v. 13, p. 394. unreasonable prices, exceeding ten per centum above their fair market value, he shall be authorized to reject such lid. SEC. 3725. All hemp, or preparations of lemp, used for lemp.

, , s. naval purposes by the Government of the Unitel States, 11, v. 12, p. 55% shall be of American growth or manufacture, when the same can be obtained of as good quality and at as low a price as foreign hemp.

SEC. 3726, The Secretary of the Navy is authorized to preserved procure the preserved meats, pickles, butter, and desiccated meats te

July 18, 1861, s. vegetables, in such manner and under such restrictions and 7, v. 13, p. 265. guarantees as in his opinion will best insure the good quality of said articles.

SEC. 3727. The Secretary of the Navy is authorized to Flour and purchase, in such manner as he shall deem most advanta bread. geous to the Government, the flour required for naval use; 4, v. 12, p. 818. and to have the bread for the Navy baked from this flour by special contract under naval inspection. SEC. 3728. The Secretary of the Navy, in making con

factures to be pretracts and purchases of articles for naval purposes, shall ferred. give the preference, all other things, including price and quality, being equal, to articles of the growth, production,

Mar. 3, 1863, s.

Home manu.

« PreviousContinue »