B-124021, AUG. 29, 1955
Highlights
INC.: REFERENCE IS MADE TO YOUR LETTER OF JULY 25. IN RESPONSE THERETO YOU ARE INFORMED THAT THE GOVERNMENT STILL MAINTAINS ITS POSITION THAT YOU ARE INDEBTED TO THE UNITED STATES IN THE SUM OF $109.20 REPRESENTING THE DIFFERENCE BETWEEN $0.33 AND $0.54 PER POUND FOR 520 POUNDS OF SCRAP MATERIAL WHICH YOU ADMIT YOU SOLD BY BILL OF SALE DATED APRIL 30. THAT SALE WAS MADE LONG BEFORE YOU APPROACHED THE DEPARTMENT OF THE NAVY FOR A WAIVER OF THE SCRAP PRICE CLAUSE IN THE CONTRACT. WITH REGARD TO THE STATEMENTS CONTAINED IN THE LAST PARAGRAPH OF YOUR LETTER YOU ARE ADVISED THAT THE CURRENT CONTROVERSY DOES NOT INVOLVE A DISPUTE OF FACTS AMENABLE TO SECTION 12 OF THE GENERAL PROVISIONS OF THE CONTRACT.
B-124021, AUG. 29, 1955
TO MASTER CLOTHES, INC.:
REFERENCE IS MADE TO YOUR LETTER OF JULY 25, 1955, RELATIVE TO YOUR INDEBTEDNESS TO THE UNITED STATES IN THE AMOUNT OF $109.20, FOR THE SALE OF SCRAP MATERIAL UNDER CONTRACT NO. DA-30-352-TAP-1780. YOU REQUEST THAT THE SUBJECT MATTER BE REFERRED TO THE SUCCESSOR CONTRACTING OFFICER FOR A FINDING OF FACT IN ORDER TO ENABLE YOU TO FILE AN APPEAL UNDER SECTION 12 OF THE GENERAL PROVISIONS OF THE CONTRACT.
IN RESPONSE THERETO YOU ARE INFORMED THAT THE GOVERNMENT STILL MAINTAINS ITS POSITION THAT YOU ARE INDEBTED TO THE UNITED STATES IN THE SUM OF $109.20 REPRESENTING THE DIFFERENCE BETWEEN $0.33 AND $0.54 PER POUND FOR 520 POUNDS OF SCRAP MATERIAL WHICH YOU ADMIT YOU SOLD BY BILL OF SALE DATED APRIL 30, 1954. THAT SALE WAS MADE LONG BEFORE YOU APPROACHED THE DEPARTMENT OF THE NAVY FOR A WAIVER OF THE SCRAP PRICE CLAUSE IN THE CONTRACT.
WITH REGARD TO THE STATEMENTS CONTAINED IN THE LAST PARAGRAPH OF YOUR LETTER YOU ARE ADVISED THAT THE CURRENT CONTROVERSY DOES NOT INVOLVE A DISPUTE OF FACTS AMENABLE TO SECTION 12 OF THE GENERAL PROVISIONS OF THE CONTRACT. THE MATTER HERE APPEARS TO BE ONE SOLELY OF LAW. THE CONTRACT REQUIRED YOU TO REIMBURSE THE GOVERNMENT AT $0.54 PER POUND FOR ALL SCRAP GENERATED. THIS AMOUNT DOES NOT APPEAR TO HAVE BEEN CONTINGENT UPON THE AMOUNT FOR WHICH YOU MIGHT BE ABLE TO SELL THE SCRAP. THE GOVERNMENT WAS NOT CONCERNED AS TO WHETHER YOU RECEIVED MORE OR LESS THAN THE PRICE YOU AGREED TO PAY THE GOVERNMENT. AS STATED IN THE DECISION OF JULY 15, 1955, NO OFFICER OF THE GOVERNMENT HAD THE AUTHORITY TO WAIVE ITS RIGHT TO RECEIVE $0.54 PER POUND SIMPLY BECAUSE YOU COULD NOT SELL THE SCRAP FOR THAT PRICE. THUS THERE APPEARS TO BE NO LOGICAL REASON FOR THE SUBMISSION OF THIS MATTER TO THE CONTRACTING OFFICER FOR A FINDING OF FACT.
ACCORDINGLY, YOU ARE REQUESTED TO PROMPTLY FORWARD TO OUR OFFICE A CHECK OR MONEY ORDERS IN THE SUM OF $109.20 PAYABLE TO THE UNITED STATES GENERAL ACCOUNTING OFFICE. IN THE EVENT YOU DO NOT ELECT TO EFFECT SETTLEMENT IN THIS MANNER, THE ENTIRE MATTER WILL BE REFERRED TO THE DEPARTMENT OF JUSTICE FOR APPROPRIATE ACTION.