B-153276, JUL. 1, 1964
Highlights
TO COLUMBIA REPORTING COMPANY: REFERENCE IS MADE TO A LETTER DATED MARCH 23. IN YOUR REQUEST FOR REFUND FILED WITH OUR OFFICE IT WAS CONCEDED THAT NO LEGAL BASIS FOR THE REFUND EXISTED BUT IT WAS CONTENDED THAT THE CLAIM CONTAINED SUCH ELEMENTS OF EQUITY AS TO JUSTIFY SUBMISSION OF IT TO THE CONGRESS PURSUANT TO THE ACT OF APRIL 10. NOR WAS THERE ANY SHOWING THAT YOU WERE UNAWARE OF ALL THE RISKS INVOLVED IN ENTERING INTO A CONTRACT FOR FILLING THE ACTUAL REQUIREMENTS. EVEN WHERE THERE HAD BEEN AN ESTIMATE OF THE GOVERNMENT'S REQUIREMENTS AND THERE WAS A REDUCTION TO ABOUT 20 PERCENT OF THE ESTIMATED REQUIREMENTS. THE ONLY CONTENTION NOW PRESENTED IS THAT IF THE GOVERNMENT HAD AWARDED THE CONTRACT ON THE BASIS OF THE LOWEST PRICE TO BE CHARGED THE PUBLIC FOR TRANSCRIPT.
B-153276, JUL. 1, 1964
TO COLUMBIA REPORTING COMPANY:
REFERENCE IS MADE TO A LETTER DATED MARCH 23, 1964, FROM YOUR ATTORNEY, REQUESTING RECONSIDERATION OF OUR DECISION OF FEBRUARY 14, 1964, WHEREIN WE DENIED YOUR REQUEST FOR REFUND OF THE AMOUNT OF $4,375 UNDER CONTRACT NO. OS-63-14 ENTERED INTO ON JULY 3, 1962, WITH THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE.
IN YOUR REQUEST FOR REFUND FILED WITH OUR OFFICE IT WAS CONCEDED THAT NO LEGAL BASIS FOR THE REFUND EXISTED BUT IT WAS CONTENDED THAT THE CLAIM CONTAINED SUCH ELEMENTS OF EQUITY AS TO JUSTIFY SUBMISSION OF IT TO THE CONGRESS PURSUANT TO THE ACT OF APRIL 10, 1928, 31 U.S.C. 236, WITH A RECOMMENDATION THAT IT BE GIVEN FAVORABLE CONSIDERATION. HOWEVER, IN OUR VIEW, THE FACTS PRESENTED DID NOT INDICATE A LACK OF GOOD FAITH ON THE PART OF THE GOVERNMENT IN ESTIMATING THE REQUIREMENTS FOR SERVICES WHICH YOU MIGHT BE CALLED UPON TO PERFORM, NOR WAS THERE ANY SHOWING THAT YOU WERE UNAWARE OF ALL THE RISKS INVOLVED IN ENTERING INTO A CONTRACT FOR FILLING THE ACTUAL REQUIREMENTS. FURTHERMORE, THE GOVERNMENT HAD NOT FURNISHED ANY OFFICIAL ESTIMATE OF ITS MINIMUM AND MAXIMUM REQUIREMENTS. WE POINTED OUT THAT IN OUR DECISION IN 37 COMP. GEN. 688, WE FAILED TO FIND AN EQUITABLE BASIS FOR RECOMMENDING A CLAIM FOR FAVORABLE CONSIDERATION BY THE CONGRESS UNDER THE ACT OF APRIL 10, 1928, 31 U.S.C. 236, EVEN WHERE THERE HAD BEEN AN ESTIMATE OF THE GOVERNMENT'S REQUIREMENTS AND THERE WAS A REDUCTION TO ABOUT 20 PERCENT OF THE ESTIMATED REQUIREMENTS.
THE ONLY CONTENTION NOW PRESENTED IS THAT IF THE GOVERNMENT HAD AWARDED THE CONTRACT ON THE BASIS OF THE LOWEST PRICE TO BE CHARGED THE PUBLIC FOR TRANSCRIPT, WITH NO BONUS TO BE PAID TO THE GOVERNMENT BY YOU, YOUR COMPANY WOULD HAVE MADE NO PROFIT SINCE IT DID NO WORK BUT IT WOULD NOT HAVE LOST THE $4,375 BONUS. THIS, OF COURSE, IS TRUE BUT WE CANNOT REGARD THIS AS CREATING ANY EQUITIES ON YOUR BEHALF SO AS TO RECOMMEND TO THE CONGRESS THAT YOUR CLAIM FOR REFUND SHOULD BE FAVORABLY CONSIDERED.
SINCE NOTHING HAS BEEN FURNISHED WHICH WOULD WARRANT ANY CHANGE IN THE CONCLUSION HERETOFORE REACHED IN THIS MATTER, OUR DECISION OF FEBRUARY 14, 1964, IS AFFIRMED.