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![handle is hein.gao/gaobaacsf0001 and id is 1 raw text is:
COMPTROLLER GENERAL OF THE UNITED STATES
WASHINGTON D.C. 0548.
MAY U
3w4 0( MAY 11 1966
Deer W. Secretary:
Referenoe is made to a ltter -dated April 27, 1966, with enclostme,
from the Gen-&a Coiwel Office of the Chief of no Leers, eolcerairJ
an earo made by bziley Dvfon Cherolet of Detrolt, Ifthia, In sub- J.iWA 0 52
mitting its bid under iritwtio tor bids No. Wgiv 35j, as a
reult of tich a eotret vu soarded to the ocmpasy.
Mie contract oers the prwooiwt or a ev step-van truck for
the U.S. AMy 109Weer District, Zake $urvey, and mes urded Marchl 17,
1966, to the omp=n by the U.S. ArW ,gineer Ditriat, Dtmit, sea-ee
;c;uwiag agecY, ia the wmmut or $I,682.314.
In the contraeting officer's fin of tact it is reported thats
gri r to the issuance of the isyltatloa, reprenttiVes o the U.S.
lake Survey District, in an effort to prcuote eoupetit.ioa far the motor
vehicles to be adertied, visited the contrace'S mles office and
r%=xUdie and received a vritten pwtton on the step-van truck of~
44A2-o4 which it w%& expressly stated that Federal eowl: tax,
WMe ign sales tax and liceae fees ware exaled. Sales to the Govern-
m. and its agencies are stated to be exaut from the Viehi±a sales
tax am talalble perwsonl pvrty es ae sotor yebicle liene fees
(fislon tattes Anntated, Sections 7.52tf and 9.1916). It is reported
tha the potstlou did not indsi Federal omoise tu*q althau&~ enlicable,
beamnae the coata or m advised by a represeatatve of the U.S, Zake
&UV7 Distric t that seh tax vs not aplicable to Gwermett pArwhase
of motor vehialms. 1t m leawd also tht this contractor bad little
kow1dge concerning Goverment proeuamt.
Becaue of the dis ity betmene the bid of the oeatrwtar and the
bid of the only other bidder In the mount of $6j036.94, verfietiod
of itos bid vas reqwuested of Hanley kvn by teleVhne on Xch 17, 1966.
It i ropore st whle c tractor verified its bid pre, it vas
evident that this was only a verifLcstion of the previously qw*ted ]price
to the reesting aeacy hich vu bsed on the .a1plreenatatli by a
auerntatAve of that-district a to the -ty of the Federal
eie tax.' Prior to wosrd of the coracwt the Detroit DistrIet s
Piocar ng agency as wt sewre of the incorrect information given to the
coubetto concerning exclusion of the Federal excise tax.
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