B-124390, MAY 24, 1956

B-124390, MAY 24, 1956

TO HONORABLE L. QUINCY MUMFORD, LIBRARIAN OF CONGRESS:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 10, 1956, WITH ENCLOSURES, FURNISHING, IN RESPONSE TO OUR LETTER OF MARCH 27, 1956, INFORMATION RELATIVE TO THE CLAIM OF THE DEWALD RADIO MANUFACTURING CORPORATION FOR ADDITIONAL COMPENSATION ALLEGED TO BE DUE UNDER CONTRACT NO. LC/B/ 263, DATED SEPTEMBER 12, 1955.

THERE IS ENCLOSED HEREWITH A COPY OF OUR DECISION OF TODAY TO THE DEWALD RADIO MANUFACTURING CORPORATION WHICH SETS FORTH THE REASONS WHY ITS CLAIM FOR INCREASED COST OF CARTON AND MOTOR PROPERLY MAY NOT BE ALLOWED.

AS STATED IN THE DECISION, THE CLAIM FOR THE ITEM OF OVERHEAD INVOLVES A QUESTION OF FACT--- THAT IS, WHETHER INCREASED OVERHEAD EXPENSE WAS IN FACT INCURRED BY REASON OF THE CHANGES, AND, IF SO, THE AMOUNT. UNDER THE TERMS OF THE DISPUTES CLAUSE OF THE CONTRACT SUCH A QUESTION IS FOR DETERMINATION IN THE FIRST INSTANCE BY THE CONTRACTING OFFICER OR THE LIBRARIAN ON APPEAL FROM AN ADVERSE DECISION OF THE CONTRACTING OFFICER. IF LABOR OVERHEAD COSTS WERE INCURRED AS A RESULT OF AUTHORIZED CHANGES, THERE APPEARS TO BE NO SUFFICIENT REASON FOR EXCLUDING THEM FROM CONSIDERATION IN ARRIVING AT AN EQUITABLE ADJUSTMENT OF THE COSTS AS PROVIDED BY PARAGRAPH 2 OF THE GENERAL CONDITIONS.

THE CONTRACTOR SHOULD BE FURNISHED A COPY OF THE DECISION OF THE CONTRACTING OFFICER AND IF THE DECISION IS ADVERSE TO THE CONTRACTOR THE CONTRACTOR SHOULD BE ADVISED OF ITS RIGHT OF APPEAL TO ..END :