Bidders on Government Contracts Must Comply With Approved Finished Walls Codes

Washington, D. C., March l9.-Hope that the President would take steps to force Federal purchasing agents to a strict compliance with existing codes when buying supplies was realized last Friday, when an executive order was issued which will make such compliance compulsory, as will be seen from its first paragraph:

"Al1 invitations to bidders hereafter promulgated by or in behalf of any executive department or independent establishment or other agency or instrumentality of the United States, including government owned and government controlled corporations (all of the foregoing being hereinafter described as agencies of the i[Jnited States), shall contain a provision to the effect that no bid will be considered unless it includes or is accompanied by a certificate duly executed by the bidder stating that the bidder is complying with and will continue to comply with each approved code of fair competition to which he is subject, and if engaged in any trade or industry for which there is no approved code of fair competition, then stating that as to such trade or industry he has become a party to and is complying with and will continue to comply with an agreement with the President under Section 4 (a) of the National Industrial Recovery Act."

Some such relief was sorely needed, as other buyers could hardly be expected to insist upon goods being manufactured and sold in full compliance with established codes while the Federal Government would take no determined stand.

The attention of the Lumber Code Authority had been called to a case in New England wherein a bidder, through error, quoted $4 per thousand under established minimum prices on a 'War Department proposal, and was awarded the contract. His error being called to his attention, the successful bidder asked permission to withdraw his bid and substitute another conforming to the law. He was informed that if he did not execute the contract which he had been awarded, he would become subject to damages for the breach thereof. Other cases, while not so flagrant as this, were known to have existed in considerable number. The President's order of March 14. however. will prevent recurrences.

In addition to the stipulations quoted above, the executive order specifies that no bid which does not comply with such requirements shall be considered or accepted. It also declares that the provisions of the order shall apply to all contracts and purchases authorized. by any state, municipal corporation, local subdivision, person or corporation in connection with projects to be carried out, wholly or in part with funds loaned or granted by any agency of the United States. Any person falsely certifying as to compliance may be punished by a $500 fine, six months in prison, or both.