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order that such deficiencies will not exist in the event that the procurement is effected.

You will remember our personal discussions relative to the price submitted by the Twin Coach Co. on May 6, 1955, of $2,150 per vehicle, f. o. b. Kent, Ohio. In view of these discussions, it is recommended that every effort be made to obtain these vehicles for the price of $1,895.69, per vehicle, which is the price submitted by the Fargo Motor Division in their recent bid for vehicles of like design and cubic ca city.

Particular attention is invited to paragraph 3 of Mr. Abram's letter to Mr Kieb of June 7, 1955, and to paragraph 4 of the letter of April 27, 1955, from the Chief Industrial Engineer, in which it was stated that the Solicitor's office had advised that these vehicles could be purchased on a negotiated basis. It is suggested that if such opinion has been rendered by the Solicitor that it be confirmed in writing before negotiating for the procurement of these vehicles.

LEASE EXHIBIT 9

OFFICE MEMORANDUM, Post OFFICE DEPARTMENT

JUNE 7, 1955. Subject: Purchase of Twin Coach vehicles. From: Mr. Abrams. To: Mr. Kieb.

In line with my recent telephone conversation regarding the purchase of the 32 Twin Coach Pony Express vehicles at a quoted price of $2,150 each, I am still of the opinion that the vehicles should be procured.

It is my understanding that the current order for approximately 2,000 vehicles of this general type will not be procured before November or December of this year. Even at the figure of $2,150 each for the 32 vehicles against a possible $1,800 cost of the new vehicles to be purchased, the differential in cost could be saved if they were immediately placed in service in Atlanta by the time the allotment of new vehicles arrived.

It is my understanding that the Solicitor's Office has rendered an opinion that these vehicles could be purchased and, if that be so, I still urge that it be done.

I am attaching to this memorandum a report from Mr. Dean, the regional director of the Atlanta office, which is self-explanatory.

F. R. ABRAMS.

LEASE EXHIBIT 10

MAY 24, 1955. Subject: Atlanta, Ga.: Establishment of additional mounted city delivery routes. From: Regional operations manager, Atlanta, Ga. To: Bureau of Post Office Operations, Washington, D. C.

Upon inquiry into the matter referred to in your communication of May 16, 1955, JTN-mn, it was disclosed that there are approximately 12,000 residences in Atlanta with boxes at the curb now being serviced by foot carriers, as compared to the figure of 15,000 shown in the letter (the count as shown by route analysis disclosed a figure of 11,511).

There are 31 routes in Atlanta now served by foot carrier with 100 or more boxes at the curb, of which 26 routes have 150 or more boxes at the curb, and 20 routes have 200 or more boxes at the curb.

Based on the formula for estimating savings and cost of operation resulting from the use of the three-fourths Twin Coach, righthand drive functional vehicle, it is concluded that it would be in the best interest of the service to make the conversion of all of the 26 routes now serving 150 or more curb-line boxes as soon as practicable and that consideration be given later to also serve those routes having 100 or more curb-line boxes.

There are nearby offices such as Decatur, East Point, Hapeville and Chamblee, where the utilization of the Twin Coach, right-hand drive vehicle would also result in a more economical service. While it is believed that the Atlanta post office could effect substantial savings through the utilization of the 32 vehicles mentioned, it is believed that the regional industrial engineer should be given latitude in distributing 6 of these vehicles to the suburban post offices if, in his judgment, it would be in the best interest of the service to do so.

It is believed that the vehicles should be furnished on a delivery arrangement of about 8 per month and that the postmaster and the regional industrial engineer be advised approximately 30 days in advance in order that appropriate advance preparation in the routes may be initiated and schemes properly modified.

It is, therefore, recommended that the Department make purchase of the 32 Twin Coach, right-hand drive vehicles and that 26 of them be designated for use in the Atlanta postal area and that the remainder be utilized either at Atlanta or in the suburban post offices at the discretion of the regional industrial engineer.

H. B. DEAN.

LEASE EXHIBIT 11

APRIL 27, 1955. Subject: Negotiated purchase of 32 Twin Coach Pony Express vehicles. From : Chief Industrial Engineer. To: Mr. Kallio, Chief of Procurement.

The installation of motor vehicles on carrier routes is approaching a standstill. The 250 Twin Coach functional vehicles are principally assigned to contract and other delivery routes in northern Ohio with estimated net annual savings of slightly over $700 each. The 300 Cushman Mailsters are profitably installed in Florida. An exceptionally favorable situation for vehicle utilization exists in Atlanta, Ga., where there are approximately 15,000 residences with boxes at the curb now serviced by foot carriers. This is an ideal situation for application of functional vehicles and based on our experience in Ohio and Florida 28 vehicles can be utilized on these routes at a net annual saving of $780 each or a total of $21,800. This is after garage overhead and a 6-year depreciation are included in operating costs. These routes have already been surveyed preparatory to assignment of vehicles which are not available and will not be for a number of months.

There are available for immediate delivery 32 Twin Coach Pony Express vehicles at a quoted price of $2,150 each. The current procurement for approximately 2,000 vehicles of this general type is in the hands of General Services Administration who have issued invitations to bid which are scheduled for opening May 11. The most optimistic estimate of delivery of the latter is November or December 1955.

It is recommended that the Department negotiate for the immediate procurement of the 32 Fageol Pony Express trucks, 28 for assignment to routes and 4 for spares. These spares are needed to provide functional vehicles for these delivery routes at all times, but they are utilized daily for relay, collection, and similar service. Assuming that the GSA procurement of vehicles will be at a price of $1,800 each (an optimistic estimate) the $350 differential between that and the Twin Coach price of $2,150 will be more than saved before deliveries start. Also these vehicles will give us an excellent opportunity to continue the work of converting foot routes to vehicle routes in a new locality under more promising conditions as to adaptability of routes.

The Solicitor's Office advises that since the General Services Administration has published an advertisement for vehicles of the type we have found necessary as a result of experiments in Ohio, it is obvious that the Department now plans to acquire a sufficient number of vehicles to enable it to conduct similar operations throughout the country. Advertisement for contracts for nonexperimental services and equipment is required by section 5 of title 41, United States Code. There are several exceptions, however, one being that when the public exigencies require the immediate delivery of articles, no advertisement is required. Accordingly, it is the suggestion of the Solicitor's Office that this purchase be put through under this exception. The reason for purchasing these vehicles in this fashion would be generally that the Department cannot wait until the completion of the advertising period, the award of contracts and the manufacture of vehicles. It must continue this operation and can only do so with the immediate purchase of vehicles. The fact that the vehicles have been advertised indicates the Department's intention of purchasing vehicles after competitive bidding. We would not be criticized, therefore, for the purchase of the 32 vehicles from Twin Coach Co. in order that our work may continue while we are awaiting delivery under later contracts.

M. W. BANTON.

Contracts negotiated for research and development purposes authorized under

sec. 302 (c) (10) Public Law 152, 81st Cong., as amended, January 1 through June 30, 1954

POST OFFICE DEPARTMENT-BUREAU OF FACILITIES

Contractor

Amount

Description

The Globe-Wernicke Co.
Cushman Motor Works, Inc...
Marco Manufacturing Co.....
Gerrard Steel Strapping Divi-

sion, U. S. Steel Corp. Cushman Motor Works, Inc...

Marco Manufacturing Co.......

The Globe-Wernicke Co.....
Bemis Bros. Bag Co.---

Pitney-Bowes, Inc.

Twin Coach Co.

$15, 880.08 Office furniture and equipment (modular techniplan units), 3, 002. 67 1 very light 4-wheel motor vehicle, body to be red, white

and blue. 7, 844.00 Furnishing and installing air-cooled engine in Marco

United States mail delivery truck. 4, 700.00 4 twine-tying machines. 5, 930.00 8 very light 3-wheel motor vehicles equipped with closed

waterproof container which can be locked for protection

of mail. 5, 400.00 Removal of complete air-cooled engine power train in

Marco truck and installation of water-cooled engine

power train. 1, 442, 13 Modular type office furniture. 9, 978. 75 25,000 paper sacks, 17 by 14 by 45 inches single wall con

struction, sewed' bottom. 25, 190.00 | Development and construction of 2 high-speed canceling

machines. 7,000.00 2 4-wheel 34-ton delivery vehicles for evaluation, test

survey, and map work. 30, 800.00 Additional research and engineering work with emphasis

on mechanization in the facing, cancellation, and distri

bution of mail. 3,500.00 1 4-wheel 44-ton delivery vehicle for evaluation and test. 3, 645.00 1 very light 4-wheel delivery vehicle. 3,535. 60 Paint and enamel to touch up painting of new red, white,

and blue post-office trucks, in spray-type, pressurized

cans for experimental purposes. 2, 610.00 36 auxiliary flat mail cases, folding, aluminum, in sorting

carrier magazines and papers. 2,000.00 Telescopic conveyor, motorized, for use in New York post

office, 6,500.00 2 4-wheel 34-ton mail delivery vehicles for evaluation, test

survey, and map work. 143, 500.00 50 4-wheel 34-ton mail delivery vehicles for test, 282, 458. 23 (All items of equipment listed above were procured fo

either developmental and research purposes, or for eval uation and test.)

Reed Research, Inc...

Reo Motors, Inc...
Tri-Wheel Motors.
Sprayon Products, Inc..

Fred S. Gichner Iron Works, Inc.

The Wilkie Co..

Twin Coach Co.

Do..

Total.

DEPARTMENT OF THE INTERIOR-FISH AND WILDLIFE SERVICE

State of Oregon, Fish Commis- $15, 988.00

sion of Oregon. National Family Opinion, Inc... 3,000.00

Investigations of the extent of the immediate direct mor

tality of adult salmon caused by Bonneville Dam. Economic research involving the collection of information

on fish and shellfish consumption.

Total..

18, 988.00

DEPARTMENT OF THE TREASURY-BUREAU OF PRINTING AND ENGRAVING

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Contracts negotiated for research and development purposes authorized under

sec. 302 (c) (10) Public Law 152, 818t Cong., as amended, July 1 through Dec. 31, 1954

POST OFFICE DEPARTMENT

BUREAU OF FACILITIES

Contractor

Amount

Description

Reed Research, Inc.

Pitney-Bowes, Inc.-
Washington Woodworking Co.--
Rapids-Standard Co., Inc..

Twin Coach Co..

Carr Fastener Co. division,

United Carr Fastener Corp.

$12, 100.00 Project 1, phase 6, observe operation, service equipment;

check and correct drawings for final report and instruc

tion manual. 15,000.*00 Overrun on contract, fiscal year 1954, for development and

construction of automatic mail facing machine. 1, 105.00 3 hand trucks for collecting distributed mail in post offices.

2 hand trucks for distributing mail. 1, 547.55 Conveyor unit designed for handling mail and supporting

mail distribution cases. 7,616.00 Furnishing of engineering research and design services and

for constructing and delivering pilot model mail letter carrier cases, for use in 34-ton stand drive mail delivery

trucks. 15, 862.00 450 short snap seals for use in closing and sealing domestic

airmail pouches and 250 long snap seals to replace locks, straps, etc. To be tested under varying climatic and

operating conditions. 143,500.00 50 4-wheel 34-ton stand drive mail delivery trucks for test. 34, 695.00 300 distributing cases, 80 separations each, for experimental

use in 3 post offices in lieu of sorting cases already installed. 792.37 1 post office layout kit with magnetic plastic templates. 430, 500.00 150 4-wheel 34-ton, stand drive, mail delivery trucks for

test. 9, 137.50 25,000 paper shipping sacks for dispatch of mail for ocean

shipment, to be tested for durability and service in

diverse climates. 16, 245.00 100 carts known as Mailmobiles for transporting letter mail

in post offices, to test usefulness in different sized post

offices for distance, volume, speed of distribution, etc. 883. 90 1 mail delivery vehicle, 3-wheel, with additional mechanical

assists, such as electric starter and battery, improved engine, reduction in noise, etc.

Twin Coach Co..
Berger Manufacturing division,

Republic Steel Corp.
Gross Engineering Co. Inc.
Twin Coach Co.

Bemis Bros. Bag Co..

Davidson Sales & Service.---

Cushman Motor Works, Inc.--

Total.

688, 984. 32

DEPARTMENT OF THE INTERIOR

BUREAU OF MINES

Linde Air Products Co...

$6,000.00 Supply of Cascade dry oxygen for fiscal year 1955. The

oxygen purchased under this contract is to be used as a raw material for either or both of two purposes. First, as an enriching agent, in the operation of the manganese recovery program blast furnace; and, second, for the production of synthesis gas in a vortex type generator.

FISH AND WILDLIFE SERVICE

National Fisheries Institute, Inc. $30,000.00 Conducting research and development of data designed to

make possible the establishment of_voluntary grade standards for fishery products by the Fish and Wildlife Service in cooperation with the fishing industry.

GENERAL SERVICES ADMINISTRATION,

Washington, D. C., April 10, 1951.

DELEGATION OF AUTHORITY NO. 81

PROCUREMENT OF SUPPLIES AND SERVICES BY THE POSTMASTER GENERAL FOR IM

PROVEMENT OF POSTAL OPERATIONS AND OTHER ACTIVITIES

1. Pursuant to authority vested in me by the Federal Property and Administrative Services Act of 1949 (Public Laws 152 and 754, 81st Cong.) herein called the act, authority is hereby delegated to the Postmaster General, to the extent necessary to improve the postal service as authorized by Public Law 759, 81st Congress:

(a) To make purchases and contracts for supplies and services under title III of the act, without advertising in accordance with the provisions and require ments of section 302 (c) (10).

2. This authority shall be exercised strictly in accordance with the act, particularly section 307 requiring written findings and in certain instances preservation of data and reports to the General Accounting Office.

3. The authority herein delegated may be redelegated only to a chief officer of the Post Office Department responsible for procurement and only with respect to contracts which will not require expenditure of more than $25,000, as provided by section 307 (b) of the act. 4. This delegation of authority shall be effective as of the date hereof.

JESS LARSON, Administrator. (Published in the Federal Register, April 14, 1951.)

EXTRACT FROM MEMORANDUM DATED DECEMBER 16, 1955, FROM J. E. MOODY, ASSIST

ANT GENERAL COUNSEL, GSA, TO LLOYD L. DUNKLE, FEDERAL SUPPLY SERVICE, GSA

On April 2, 1954, the Post Office Department submitted requisitions for quantities of six different pieces of equipment, totaling over 2,000 units. One of these items (covered by requisition No. 4-G-5) was for 250 sit-stand drive trucks. A number of recommendations were made by GSA on changes in specifications which would encourage competition. However, none were accepted by the post office. The lowest acceptable bid received was from Twin Coach at a price of $2,870 each. No award was made by GSA as the price was considered excessive for the size and type of vehicle required. Notwithstanding this fact, it is understood that POD later bought these vehicles from Twin Coach, presumably at the price of $2,870, each, they previously quoted to GSA.

By letter of January 26, 1955, the Post Office Department submitted specification 32–54 (30) for sit-stand drive trucks, requesting GSA comments on or before February 15.

Reply was made on February 14, suggesting a number of changes, including the following major points :

1. The proposed specification required a 6-volt electrical system. The industry trend at that time was toward a 12-volt system, which some manufacturers had already adopted. GSA suggested that the specifications be changed to permit the furnishing of a 12-volt system because manufacturers who had already adopted the 12-volt system could not supply a 6-volt system except at an additional cost of approximately $40 per vehicle. This broadened the area of competition and later resulted in an award to Fargo Motor Corp., who is now furnishing their standard production 12-volt system.

2. The proposed sp fication quired bonded brake lining. Since all manufacturers had not adopted bonded brake lining, GSA suggested that the specifications be revised to admit both types. Bonded brake lining was used by Fargo at that time, but not by either Ford or Chevrolet. This change was also intended to broaden the area of competition.

3. The proposed specification restricted the transmission to the Detroit Gear transmission, Having knowledge that Detroit Gear Division of BorgWarner was considering discontinuance of this particular transmission, GSA recommended that further consideration be given to this aspect of the specification.

4. Because of load distribution, the 4-ply passenger-car type tires specified by the Post Office Department were inadequate to carry the load required. GSA suggested that truck-type tires of correct size be specified, and further, that front and rear tires be interchangeable.

On March 23, 1955, requisition 5-A-1575 was received from the Post Office Department for 2,000 of these sit-stand drive trucks. The requisition attempted to incorporate changes recommended by GSA under items 1, 3, and 4, above. However, while truck-type tires of correct size were specified, it was also required that they be tubeless tires, which were not standard in the industry at that time. Further, the specifications for the transmission were now so worded as to permit only the General Motors Corp. hydromatic transmission.

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