1769. Purchases : Authority to make.- No purchases are to be made, except of fresh meat, vegetables, and bread, without the authority in writing of the Commander-in-Chief or of the Senior Officer, who is to be guided by the instructions to him contained in Article 435.

2. Reports to Commander-in-Chief.- A report is to be made to the Commander-in-Chief of all such purchases made by ships under his orders.

3. Where not to be made.-No purchases should be made by a ship in the vicinity of a naval establishment, nor at places where there are any standing local contracts or agreements for the articles required.

1770. Local Contracts.-Whenever standing local contracts are considered desirable by the Commander-in-Chief in accordance with Article 437, he will cause tenders to be invited on form S. 566 from firms known to be capable of carrying out the contract or by advertisement as may be considered most suitable. Tenders should state the quality and as near as may be the quantities of the several articles likely to be required. He is not bound to accept the lowest or any tender, and it is to be so stated in the notices inviting tenders. An abstract of the tenders received is to be made, and if the lowest tender is passed over, the reasons for so doing are to be given on the abstract. When limited competition is obtained, the firms invited should be treated on an equality, unless there are very strong reasons to the contrary, in which case they should be stated on the abstract.

2. Dutiable Articles.-Where a contract is made at a colonial port for an article on which any local duty is leviable, the following action should be taken :

1. It should be ascertained whether, under the Colonial Government regulations, it is possible for supplies made to His Majesty's ships to be free of the duty either by obtaining exemption or drawback, and, if so, what are the necessary formalities.
2. If exemption cannot be obtained, it should be left to the contractor to pay the duty, and it should be clearly indicated in the tender forms and contract that the prices are to be inclusive of the duty.
3. If exemption from, or drawback of duty can be obtained in respect of supplies to His Majesty's ships, and if the necessary formalities are such as can be performed by the contractor supplying the goods, it should be made a condition of the contract that the contractor shall take the necessary steps to obtain exemption from or drawback of duty, and in all such cases the contract price should be exclusive of the duty.
4. In other cases where the necessary formalities for obtaining drawback or exemption are such as can only be performed by an officer representing the Admiralty, it should be indicated clearly on the tender forms and contract that the contractor is (or is not) to pay the duty, and that the prices are to be inclusive (or exclusive) of the duty, as the case may be.

3. Limit of Contract.-As a rule no contract is to be entered into for a longer period than 12 months; but if any contract is entered into for a longer period, it is to contain a covenant that it is subject to the approval of the Admiralty.

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4. Particulars to Admiralty.-The abstract, with the original tenders and duplicates of all contracts made thereon, is to be forwarded by the Commander-in-Chief to the Admiralty for the Director of Navy Contracts, without delay, and, in the case of contracts entered into for a longer period than 12 months, the reasons for so doing are to be stated on the abstract.

Copies are also to be distributed among the ships of the station for information and guidance.

5. Abstract of Tenders.-The form of abstract of tenders (S. 566x) is to be used for all tenders whether invited by advertisement or limited competition, and the " Instructions as to Tenders " on the back of the form are to be followed, both in inviting tenders and in dealing with those received.

1771. Supplies under Local Contracts.-When supplies are obtained under any local contracts, the contractors are to be required to produce for inspection the approved contract then in force, to the terms of which careful reference should be made.

2. Exemption from Customs Duty.-In the case of dutiable articles, where exemption from or drawback of the duty can be obtained by direct action on the part of an officer representing the Admiralty, but not by the contractor, the necessary steps are to be taken by the proper officer; and should it not be possible for the reclaim to be carried through by the purchasing ship, the matter is to be reported to the Commander-in-Chief or Senior Officer on the station for the recovery to be effected.

1772. Rules for Local Purchases.-When, in default of any arrangement under the preceding Articles, local purchases become necessary, the Senior Officer present is to direct them to be made under the following rules :

1. The stores are to be procured either by public advertisement, private tender, or purchase in the market, according as may seem, after due inquiry, to be most economical and most for the public advantage.

Customs Duty.-Where there is a local customs duty on any article purchased which can be recovered in the form of drawback or otherwise, the price paid should either be exclusive of duty, or, if inclusive of duty, the necessary steps are to be taken for the recovery of such duty ; and should it not be possible for the reclaim to be carried through by the purchasing ship, the matter is to be reported to the Commander-in-Chief or Senior Officer on the station for the recovery to be effected.

2. The consul, commissariat officer, or other local officer representing British interests is to be consulted respecting market prices and the rate of exchange.
3. The rate book and the book of sources of supply of coal and fresh provisions are also to be consulted so as to obtain some indication of the reasonable rate to be paid.

Important information regarding the water supply and lubricating oils, &c., can also be obtained from the latter book.

4. Whenever tenders are invited, the senior officer present is not to be content with the bare fact of one of them being the lowest, but he is to test their fairness generally by inquiry in the markets, by the current quotations, or by other means at his command.

Should he think better terms can be had, he is, with due regard to quality, to negotiate with one or more of the persons tendering for a reduction, of price, or seek offers elsewhere, it being always possible that tenders may be the result of combination.

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5. When possible, the price quoted should include delivery on board ship or into the ship's boats.
6. Whenever the senior officer present, in exceptional circumstances, may think it advantageous to the Service to employ the consul to effect purchases, he will do so and direct the Accountant Officer in making the payments to include in the vouchers and pay to the consul the usual commission of 21 per cent.

The senior officer is in such a case to report his reasons for so employing the consul, and should they not be satisfactory the commission will be placed as an imprest against him.

7. When supplies of any description are obtained, or services performed for His Majesty's ships, through contractors to the Commissariat Department, or through the agency or with the assistance of the officers of that Department, the Accountant Officer of the ship, whenever direct payment can be made without inconvenience or detriment to .the public service, is to pay the contractor direct, and is not to leave the payment to be made by the Treasury Chest Officer, and claimed for by the Treasury from the Admiralty.

The officers of the Commissariat Department will, however, if requested, negotiate or help to negotiate the purchases or performance of the services required, for the use of His Majesty's Navy.

Before payment is made, the Accountant Officer is to take care to satisfy himself that all the information has been obtained from the commissariat officer that is necessary to substantiate the correctness of the claim of the contractor, including such certificate or opinion as to rates, &c., as the commissariat officer is able to afford.

The commissariat officer, at the time of giving the order to the contractor, will also, if practicable, furnish the Accountant Officer with the rates at which the payment is to be made ; and the commissariat officer's certificate of the rates is to be forwarded into office by the Accountant Officer with his cash account.

8. The Accountant Officer is to represent whenever the prices asked for stores or articles are in his opinion excessive, so that the senior officer present may decide as to the necessity of making the purchase.

1. The purchase of coal, whether for a squadron or a single ship, is to be restricted, so far as compatible with efficiency, to the actual requirements of the Service. A full explanation of the reasons for such purchases is to be given in the letter of advice (form S. 133) as directed in Article 1777, to the Admiralty, and a duplicate is to be forwarded to the Commander-in-Chief, under whose orders the squadron or ship was acting when the purchase was made.
2. The actual strength of rum or other spirit purchased is to be stated in the voucher; if stronger than 5 per cent. under proof it is to be reduced to that strength by adding water to it, and the additional quantity resulting is to be brought on charge as spirit and shown in the purchase voucher.
To ascertain the quantity of water which should be added to strong rum to reduce it to the issuing strength of 5 per cent. under proof, multiply the quantity to be reduced by the

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actual strength and divide the result by the issuing strength. The difference between this result and the quantity to be reduced gives the number of gallons of water to be added.
3. Supplies of fresh beef and mutton are to be received as directed in Article 1703. Mutton may be purchased when the price is not higher than that of beef. Care is to be taken that no larger supply is at any time obtained than is likely to be consumed while sweet and good.
4. Fourpence per pound is to be considered the limit beyond which purchases of fresh Bread are not to be made, except in cases of emergency or for reasons of health. When purchases are made at a higher rate, the purchase voucher is to be accompanied by the Captain's certificate explaining the necessity.

1774. Survey of Articles purchased.-All articles purchased are to be examined by the proper surveying officers of the ship, as provided for by Article 1825.

1775. Casks, &c., with purchases.-All casks, packages, or bags obtained with purchased articles, that are not to be returned, are to be described in the vouchers, even though the price may be included in that of the articles. See 1711 (Packages to be Marked).

1776. Neglect, Fraud, &c.-Whenever neglect, fraud, signing or rendering false reports or accounts, or other malpractices of a similar character are discovered with respect to purchases, the Captain is to follow the course laid down in Articles 593, 1820 and 1821. See 15 (Collusion or Fraud).

1777. Purchases, Repairs, Freight, &c. : Report of.-Whenever coal or other naval stores are purchased, or are obtained from another department of Government, or another department of the Naval Service, and whenever expenses, such as landing or shipping coal, repairs, freight, or salvage, or any other charges-are incurred in connection with naval stores, the Captain is at once to forward a letter of advice, on form S. 133, giving fully the information required by the several headings thereof. This advice is to be sent whether the payment for the supplies is made locally, or, according to the terms of any contract, by the Admiralty.

2. The entries in the description column of a letter of advice, in cash vouchers, and in reports to the Admiralty, are to follow as closely as possible the description given in the rate book. The rate book price is to be inserted in red ink against each item, and the equivalent rate book denominations of weight or measure are invariably to be used.

1778. Replacing rejected Articles.-When purchases are made, by the direction of the Captain, to replace rejected goods supplied under contract, a report of the circumstances is to accompany the purchase voucher into office.

1779. General Purchases for a Fleet.-When general purchases are required for a fleet or squadron, an officer of the flagship, unless the Senior Officer may deem it expedient to nominate some other person, is to be directed to make the whole of the purchases, and to cause the separate supplies to be delivered to the ships requiring them.

2. Supply to Ships.-In such cases the articles are to be brought on charge by the officer directed to make the purchases, who is to take credit for them in the usual manner on supply notes and receipts, duly passed; but the surveying officers of the ship to which the articles are actually delivered are

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to inspect and satisfy themselves of their fitness, a notation to this effect being made on the vouchers.

3. Report to Commander-in-Chief.-Senior Officers are to inform their Commanders-in-Chief of all purchases they may order or make, and of their reasons for so doing, giving full particulars as to prices paid, and what measures were taken to ensure the articles being obtained at fair and reasonable prices. See 1769 (Authority for Purchases).

1780. Vouchers for purchase.-The vendor's own claim for the stores supplied, made out on his own bill-head, should be procured, whenever possible, and attached to form S. 22, which should be filled up in English and completed in duplicate, with the various certificates required, after any necessary alteration has been made to bring it into agreement with the facts of the case.

2. When original vouchers cannot be made out by the vendors a statement to that effect is to be inserted on form S. 22.

1781. Payments, how made.-All payments for purchases are to be made in the local currency, except on the Mediterranean Station, where contracts for provisions, &c., may be made at British rates and weights. if the Commander-in-Chief should consider it advantageous to the Crown to do so.

2. When purchases are made with foreign weights or measures, or with foreign coins, their British equivalents according to the rate book denominations are to be invariably shown on the vouchers.

1782. Payments by Cash or Bill.-Payments for purchases and for services rendered, not exceeding 201., are to be made in cash or by navy bill; above that sum, by bill, except when the Captain may be satisfied that it would be for the public advantage to make the payments wholly or partly out of the public money in hand; in such a case the Captain will state his reasons in his order to the. Accountant Officer, which is to accompany the monthly cash account.

1783. Purchases for Sick Berth.-The Medical Officer on receiving the sanction of the Medical Director-General to purchase articles for the use of the sick berth not procurable from store, is to purchase them on the most advantageous terms, and charge himself with them. The cost is to be defrayed by the Accountant Officer in the same manner as sick mess disbursements. See 1271 (Sick Berth).

1784. Medical Stores and Medicines.-If medical stores or medicines are required, and the requisite supplies cannot be obtained from a hospital or from another ship, the Medical Officer is, through his Captain, to obtain authority at home from the Medical Director-General, and abroad from the senior officer present, to purchase the quantities required ; he is to take care and certify on the voucher that the articles are good and fit for the Service, and that the prices paid are just and reasonable, and he is to assist the Accountant Officer in correctly preparing the proper vouchers. See 1268 (Supplies).

2. The Medical Officer, or, when there is none, the officer ordered to make such purchases, is to inform the Medical Director-General, through his Captain, of the necessity for applying for the authority to purchase, and state why sufficient supplies were not obtained when the ship was at the last naval medical depot, forwarding to him an attested copy of the vouchers.

3. Payments for. The payments are to be made by the Accountant Officer under the authority of the Captain.

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1785. Examination of Purchases.-If circumstances admit, medicines purchased are to be examined by the Principal Medical Officer of the fleet or squadron should such an officer be present.

2. Other articles are to be certified by the Navigating and the Accountant Officer.

1786. Forms.-Established forms are not to be purchased locally except in very exceptional circumstances, which are to be immediately reported to the Admiralty, and also fully noted on the purchase voucher, to enable the Accountant-General to recover the amount from the Stationery Office. See 1369 (Stationery Allowance) ; 1844 (Farms in MS.).

1787. Sale of Old Stores.-No sales of old stores or other articles are ever to be included in vouchers for purchases. Accounts of sales and of purchases are always to be kept and rendered separately.

1788. Testimonials to Contractors.-Certificates or testimonials are never to be given by any of the officers of His Majesty's ships to contractors or other persons from whom supplies may have been purchased, nor are officers to receive from them any emolument, fee, or gratuity, either directly or indirectly on account of purchases or contracts. See 16 (Pecuniary interest forbidden).

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