17-172
Montana Attorney General Opinion 17-172
Length: 495 wordsOfficial source
Cite as 17 Mont. Op. Att'y Gen. No. 172
Opinion No. 172.
State Purchasing Agent-Call for Bids.
HELD: The statute requires that
the State Purchasing Agent must ad-
vertise for bids in purchasing all sup-
plies and equipment.
Although such
advertising may be futile so far as
concerns results obtained, the statutory
duty must nevertheless be performed.
206
OPINIONS OF THE ATTORNEY GENERAL
October 7. 1937.
Hon. I. S. McQuitty
State Purchasing Agent
The Capitol
Dear Mr. McQuitty:
You have asked my opinion on the
following facts:
"For the past several years this
office has advertised and sent out
calls to service station dealers in
gasoline, asking them to bid on fur-
nishing gasoline to State-owned cars
for six-months periods, October 15th
to April 15th on Winter Grade and
April 15th to October 15th on Sum-
mer Grade Gasoline.
"Ever since the N.R.A. was cre-
ated the State has gained no ad-
vantage as to price except a rebate
of 1¢ per gallon Federal Tax, which
refund may be obtained from any
service station provided exemption
certificates are signed.
In reply to
our calls for bids, we often receive
quotations from bidders at a point
at which they do not maintain a
service station. and this results in
considerable confusion to State em-
ployees who are trying to obey the
rules of this office.
"The Highway Department has 12
points in the State at which they can
accept carload deliveries, and we con-
tinue to send out separate calls for
bids for lots as required and do find
a variance in prices and we do award
the business to the lowest bidder.
The prices on this gasoline vary be-
tween 14¢ and 17¢ per gallon and
includes the State tax but excludes
the Federal Tax. Service Station de-
liveries, however, are on a different
basis.
If the price of gasoline in
Helena is 250¢ per gallon the price
ordains at every service station and
a State employee will pay 240¢ at
every station, obtaining only the re-
bate of 1¢ per gallon the Federal tax.
"Under the
existing
conditions,
since the State can gain no advantage
by going to the considerable expense
necessary to call for bids, the question
then arises, is it within the jurisdictio!J
or authority of the State Purchasing
Agent to refrain from sending out a
call for bids on service station de-
liveries of gasoline. It seems logical
to argue that the funds of this office
should not be wasted in an endeavor
that brings no advantage to the
State."
While. in the circumstances. it seems
utterly futile to advertise for bids,
Section 293.3, R. C. M. 1935, provides
that the State Purchasing Agent "must
advertise" for bids.
Since the statute
does not make any exceptions and
does not make your call for bids de-
pendent upon the results obtained, we
are unable to advise you that you have
any discretion in the matter or that
you may omit such statutory require-
ment. Apparently the only remedy is
by legislation.