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B-141089, MAR. 13, 1962

B-141089 Mar 13, 1962
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AGENCY FOR INTERNATIONAL DEVELOPMENT: WE ARE IN RECEIPT OF A LETTER DATED MARCH 2. A COPY OF THE SAID LETTER APPEARS TO HAVE BEEN FURNISHED TO YOUR MR. IN SUPPORT OF THIS REQUEST IT IS ALLEGED THAT CONSTRUCTION OF BOTH BUILDINGS WAS COMPLETED SUBSTANTIALLY AHEAD OF THE COMPLETION DATE FIXED BY THE CONTRACT. THAT THE ONLY REMAINING WORK TO BE PERFORMED IS THE FURNISHING AND INSTALLING OF TWO AUTOMATIC BATTERY CHARGERS AND CERTAIN TELEPHONE EQUIPMENT VALUED AT $33. THAT THE CONTRACTOR IS NOT RESPONSIBLE FOR THE DELAYS INVOLVED. 188.10 IS BEING WITHHELD PENDING INSTALLATION AND ACCEPTANCE OF THAT EQUIPMENT. ON THE BASIS OF THE PRESENT RECORD WE ARE UNABLE TO COMPLY WITH HIS REQUEST THAT A FORMAL DECISION BE RENDERED.

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B-141089, MAR. 13, 1962

TO THE ADMINISTRATOR, AGENCY FOR INTERNATIONAL DEVELOPMENT:

WE ARE IN RECEIPT OF A LETTER DATED MARCH 2, 1962, FROM GEOFFREY CREYKE, JR., ATTORNEY FOR VINNELL CORPORATION, REQUESTING THAT A DECISION BE RENDERED WHICH WOULD AUTHORIZE THE CONTRACTING OFFICE TO REDUCE TO A REASONABLE AMOUNT THE RETAINED PERCENTAGES BEING WITHHELD UNDER CONTRACTS NOS. ICA-89-7-T AND ICAC-1509. A COPY OF THE SAID LETTER APPEARS TO HAVE BEEN FURNISHED TO YOUR MR. JULIUS KESSLER, STATED TO BE THE CONTRACTING OFFICER UNDER THE PROJECTS.

IN SUPPORT OF THIS REQUEST IT IS ALLEGED THAT CONSTRUCTION OF BOTH BUILDINGS WAS COMPLETED SUBSTANTIALLY AHEAD OF THE COMPLETION DATE FIXED BY THE CONTRACT; THAT THE ONLY REMAINING WORK TO BE PERFORMED IS THE FURNISHING AND INSTALLING OF TWO AUTOMATIC BATTERY CHARGERS AND CERTAIN TELEPHONE EQUIPMENT VALUED AT $33,069; THAT THE CONTRACTOR IS NOT RESPONSIBLE FOR THE DELAYS INVOLVED; AND THAT A RETAINAGE OF $351,188.10 IS BEING WITHHELD PENDING INSTALLATION AND ACCEPTANCE OF THAT EQUIPMENT.

UNDER THE CONTRACT TERMS QUOTED BY THE CONTRACTOR'S ATTORNEY, AND ON THE BASIS OF THE PRESENT RECORD WE ARE UNABLE TO COMPLY WITH HIS REQUEST THAT A FORMAL DECISION BE RENDERED, THE EFFECT OF WHICH WOULD BE TO AUTHORIZE THE RELEASE OF A SUBSTANTIAL AMOUNT OF THE ABOVE FUNDS NOW RETAINED. HOWEVER, HAVING IN MIND THAT THE PURPOSE OF SUCH PROVISIONS ARE TO INSURE PERFORMANCE OR, IN THE CASE OF DEFAULT, TO PROTECT THE INTERESTS OF THE UNITED STATES, WE WOULD HAVE NO OBJECTION, IF THE STATUS OF THE TWO CONTRACTS IS FOUND TO BE AS REPORTED, TO THE RETENTION OF AN AMOUNT COMMENSURATE WITH THE UNFINISHED WORK AND THE RELEASE OF THE BALANCE DUE UNDER THE CONTRACTS, IF OTHERWISE ACCEPTABLE TO YOUR AGENCY.

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