Evening star., 1934-05-17
M'CARL BANS BID
BY FORD AGENCY.
Qualification of Certificates
Brings Ruling Against
Northwest Moton Co.


The Henry Ford-N. r.. A. contro-
versy took a new turn today when
Controller General McCarl authorized
rejection of a low bid for two trucks
by the Northwest Motor Co., Ford
agency in Bethesda, Md on the
ground the required certificate OF
code compliance accompanying the
bid had been qualified by the bidder.
Northwest Motors Is headed by r. P.
Sabine.
The decision. rendered to the Com.
merce Department. does not bar use
of Ford products by the Government,
but does have the effect Of putting
all concerns on notice that every
product furnished under Govern
ment contract must be produced un-
der code provisions.
It was understood a decision of like
tenor went to several other depart
ments proposing to buy Ford vehicles.
In the present case Northwest pro-
posed to sell two trucks for use in
the eleventh lighthouse district in
Detroit for $48S26. The next low bid
was by Chevrolet, $55l.35.
The Northwest bid was accom-
panied by a letter which said "the
bidder Is submitting this bid entirely
upon its own responsibility and Moth
ing contained herein or in the bid
filed herewith or the alternative bid
filed herewith (which quoted another
figure) is in any manner or degree
binding on the Ford Motor Co..
Delaware corporation. The North
west Motor Co has no authority, ex-
pressed. inferred or implied. to act
for or bind the Ford Motor Co.
The bidder is q member of the N.
r. A.. has complied, Is complying and
will continue to comply with all its
lawful provisions. 1t can make no
representations respecting any Of the
various manufacturers who have any
part in the manufacture of materials
or equipment offered In this bid, and
cannot bind itself that all of such
manufacturers are complying. The
bidder has no means Of knowing
whether or not they are and such q
requirement would be unfair and un-
just The law has means of enforce
ment and bidder cannot contract with
the Government to see that the law
is enforced: 1t can make assurances
only in so far as they relate to bidder.
and such certificate as bidder executes
will relate only to bidder
Certificates Attacked.
The Northwest set up other con-
tentions as follows:
Il. That bidder is required to sub
nit certificate of compliance only In
so far as it relates to bidder
%. That requirement that bidder
furnish certificates on the part OF the
5000 or more manufacturers whose
products 60 to make the component
parts that constitute a motor vehicle
Of the type bidder proposes to furnish
under this bid is impractical. unfair.
unjust and against the interests Of
the Government and all qualified bid
ders. and is repugnant to the statutes
governing Government purchases and
therefore is not lawful require
ment."
Finally. the letter said: Bidder In
its affidavit to disbursing officer will
aver that all supplies furnished un-
der such contract have, to the best of
its knowledge. information and be-
lief. been produced in strict compli-
ance with such code or agreement
tre-employmenD. as the case may be,
and payments shall be made upon
such averment."
Based on Qualifica ton.
1t is on this qualification that NC
Carl authorized rejection of the bid.
In his decision. McCarl cites the
executive order of March IA under
which a certificate OF code adherance
was required for bidders, and said ::
1T is not enough under the executive
order of March II. 1884. that the
contractor furnish certificate with
his bid that he is complying with and
will continue to comply with the ap-
plicable approved code of fair COM
petition. or II no code, that he has
signed and complied with and will
continue to comply with the Presi-
dents Unemployment agreement, and
agrees in the contract to continue
compliance Herewith. but he may not
make delivery under the contract OF
any articles. materials or supplies. in
whole OF in part, produced or fur
nished by any person who shall not
have certified that he Is complying
with and will continue to comply
with each code of fair competition
which relates to such articles. ma
terials or supplies. or If no code, then
that he has signed or complied with
the Presidents Unemployment agree
nfent."
Concluding. he said the bid OF the
Northwest ''is not responsive to the
advertised specifications, in that the
certificate as 50 qualified proposes to
disregard the requirements" of the
presidential order by submitting, in
lieu of the certificate required, the
bidders affidavit based upon informa
ton and belief.
Accordingly you are advised that
the proposal submitted by the North
west Motor Co. is not for considera-
tion."
Second Recent Case.
This question of certificates is bob
bing up for the second time within
the past 10 days, Sabine having asked
the District Supreme Court recently
for an injunction to restrain the Wal
Department from denying him a con-
tract under low bid. The litigation
was dropped. however. when the Wal
Ill
In the current decision, McCarl
emphasized the phrase about those
persons furnishing products who shall
mot have certified" that they are
complying with their applicable code
and this was interpreted to mean any
bidder must be in possession OF such
animation or assurance from any
person whose product he Is handling