A-20135, OCTOBER 24, 1927, 7 COMP. GEN. 289

A-20135: Oct 24, 1927

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CERTAIN ITEMS OF THE WORK ARE ELIMINATED. THE CONTRACTOR IS NOT ENTITLED TO SUCH BONUS FOR THE TIME THAT WOULD HAVE BEEN CONSUMED IN DOING THE ELIMINATED WORK. THIS ADVERTISEMENT STATED THAT FOR THE PURPOSE OF COMPARING BIDS AND ESTIMATING DAMAGES TO THE GOVERNMENT FOR DELAY IN COMPLETION OF THE WORK "THE EXPENSE TO THE UNITED STATES FOR MAINTAINING THE BOAT AND CREW WILL BE ESTIMATED AT $400 PER DAY.'. PROSPECTIVE BIDDERS WERE REQUESTED TO STATE THE PERIOD REQUIRED FOR COMPLETION OF THE WORK AND WERE NOTIFIED THAT. WILL BE DEDUCTED FROM HIS PAYMENT. THE SUM OF $400.00 WILL BE PAID HIM FOR EACH DAY. FOR THESE PURPOSES ANY TIME LESS THAN SIX HOURS WILL BE DISREGARDED. ANY TIME EXCEEDING SIX HOURS BUT LESS THAN TWELVE HOURS WILL BE RECKONED AS HALF A DAY.

A-20135, OCTOBER 24, 1927, 7 COMP. GEN. 289

CONTRACTS - PERFORMANCE - BONUS FOR TIME SAVED WHERE A CONTRACT FOR THE DOING OF ESTIMATED WORK PROVIDES FOR THE PAYMENT OF A BONUS FOR EVERY DAY SAVED IN COMPLETING THE WORK WITHIN A STIPULATED PERIOD, AND CERTAIN ITEMS OF THE WORK ARE ELIMINATED, THE CONTRACTOR IS NOT ENTITLED TO SUCH BONUS FOR THE TIME THAT WOULD HAVE BEEN CONSUMED IN DOING THE ELIMINATED WORK.

DECISION BY COMPTROLLER GENERAL MCCARL, OCTOBER 24, 1927:

ROBINS DRY DOCK AND REPAIR CO. REQUESTED ALLOWANCE OF $1,400 AS BONUS AT THE RATE OF $400 PER DAY FOR 3.5 DAYS NOT PAID BY MAJ. W. D. STYER, CORPS OF ENGINEERS, UNITED STATES ARMY, ON VOUCHER NO 2051, SEPTEMBER, 1926, ACCOUNTS, IN MAKING FINAL PAYMENT UNDER A PROPOSAL AND ACCEPTANCE DATED SEPTEMBER 11, 1926, FOR CERTAIN REPAIRS, ETC., TO UNITED STATES DREDGE CHINOOK.

BY ADVERTISEMENT FOR BIDS TO BE OPENED SEPTEMBER 9, 1926, THE UNITED STATES DISTRICT ENGINEER'S OFFICE IN NEW YORK CITY REQUESTED PROPOSALS FOR MAKING CERTAIN SPECIFIED AND ESTIMATED REPAIRS TO THE UNITED STATES DREDGE CHINOOK. THIS ADVERTISEMENT STATED THAT FOR THE PURPOSE OF COMPARING BIDS AND ESTIMATING DAMAGES TO THE GOVERNMENT FOR DELAY IN COMPLETION OF THE WORK "THE EXPENSE TO THE UNITED STATES FOR MAINTAINING THE BOAT AND CREW WILL BE ESTIMATED AT $400 PER DAY.' PROSPECTIVE BIDDERS WERE REQUESTED TO STATE THE PERIOD REQUIRED FOR COMPLETION OF THE WORK AND WERE NOTIFIED THAT---

* * * SHOULD THE CONTRACTOR EXCEED THE TIME NAMED BY HIM IN HIS PROPOSAL, THE SUM OF $400.00 PER DAY, EXCLUSIVE OF SUNDAYS AND DAYS DECLARED LEGAL HOLIDAYS BY CONGRESS, WILL BE DEDUCTED FROM HIS PAYMENT. SHOULD HE, HOWEVER, COMPLETE THE WORK IN LESS TIME THAN THAT NAMED IN HIS PROPOSAL, THE SUM OF $400.00 WILL BE PAID HIM FOR EACH DAY, EXCLUSIVE OF SUNDAYS AND DAYS DECLARED LEGAL HOLIDAYS BY CONGRESS, OF THE WORK SO SHORTENED. FOR THESE PURPOSES ANY TIME LESS THAN SIX HOURS WILL BE DISREGARDED, AND ANY TIME EXCEEDING SIX HOURS BUT LESS THAN TWELVE HOURS WILL BE RECKONED AS HALF A DAY.

IF WORK ADDITIONAL TO THAT CONTEMPLATED IN THESE SPECIFICATIONS IS ORDERED BY THE CONTRACTING OFFICER, THE ADDITIONAL TIME TO BE ALLOWED FOR SUCH WORK SHALL BE IN THE SAME PROPORTION TO THE TIME SPECIFIED IN THE CONTRACTOR'S PROPOSAL AS THE ADDITIONAL COST BEARS TO THE PRICE BID FOR THE WORK CONTEMPLATED IN THE SPECIFICATIONS.

THE ESSENTIAL PART OF THE ACCEPTED PROPOSAL OF THE ROBINS DRY DOCK AND REPAIR CO. IS AS OLLOWS:

1. FOR ALL WORK CONTEMPLATED, EXCEPT THAT DESCRIBED IN PARAGRAPHS 24, 34, AND 56, SEVENTY-SIX THOUSAND THREE HUNDRED EIGHTY DOLLARS AND NO CENTS ($76,380.00).

2. FOR REMOVING MUD, FIVE DOLLARS AND NO CENTS ($5.00) PER CUBIC YARD.

3. ALLOWANCE FOR OLD CASTINGS REMOVED, ------- DOLLARS AND ONE-HALF CENT (?005) PER LB.

4. ALLOWANCE FOR OLD GENERATOR, TWENTY DOLLARS AND NO CENTS ($20.00).

5. UNIT PRICE FOR OVERFLOWS, FIFTEEN HD. EIGHTY-FIVE DOLLARS AND NO CENTS ($1,585).

6. FOR ALL WORK DESCRIBED IN PARAGRAPH 56, THIRTY-THREE THOUSAND EIGHT HUNDRED DOLLARS AND NO CENTS ($33,800.00).

7. TIME REQUIRED FOR ALL WORK, EXCLUSIVE OF SUNDAYS AND DAYS DECLARED LEGAL HOLIDAYS BY CONGRESS, EXCEPT FOR WORK CALLED FOR IN PARAGRAPH 56, FORTY (40) DAYS.

8. TIME REQUIRED FOR ALL WORK AS DESCRIBED IN PARAGRAPH 56, EXCLUSIVE OF SUNDAYS AND DAYS DECLARED LEGAL HOLIDAYS BY CONGRESS, TWENTY-FOUR (24) DAYS, ADDITIONAL.

9. WHEN AND WHERE WORK WILL BE DONE, AT OUR PLANT, FT. OF DWIGHT ST., ERIE BASIN, BKLYN., N.Y.

THERE WAS ORDERED SOME ADDITIONAL WORK AMOUNTING TO $19,665 AND AN ADDITIONAL ALLOWANCE OF 10 DAYS WAS MADE THEREFOR. THE CONTRACTOR BEGAN WORK ON SEPTEMBER 13, 1926, WHEN THE BOAT WAS DELIVERED AND COMPLETED SAME, INCLUDING THE EXTRA WORK, ON NOVEMBER 19, 1926, OR AFTER A PERIOD OF 58 WORKING DAYS. IN OTHER WORDS, THE CONTRACTOR RECEIVED AN ALLOWANCE OF 74 WORKING DAYS WITHIN WHICH TO COMPLETE THE WORK AND CLAIMED A BONUS OF $400 PER DAY FOR 16 WORKING DAYS SAVED IN ITS COMPLETION. THE CONTRACTOR WAS PAID $400 PER DAY FOR 12.5 WORKING DAYS, OR $5,000, A DEDUCTION OF 3.5 WORKING DAYS BEING MADE BECAUSE THE CONTRACTOR WAS REQUIRED TO REMOVE FROM THE BINS ONLY 305 CUBIC YARDS OF MUD INSTEAD OF THE ESTIMATED 400 CUBIC YARDS, AND BECAUSE IT WAS REQUIRED TO FURNISH AND INSTALL ONLY 4 OVERFLOW CHUTES INSTEAD OF 8 CHUTES AS ESTIMATED IN THE SPECIFICATIONS. THE REDUCTION OF 3.5 DAYS BECAUSE OF THE ELIMINATION OF THIS WORK WAS BASED ON THE PROPORTIONATE ESTIMATED TIME FOR ALL OF THE WORK.

THE CONTRACTOR DOES NOT QUESTION THE CORRECTNESS OF THE NUMBER OF DAYS DEDUCTED, BUT CONTENDS THAT THE AGREEMENT CONTAINS NEITHER AUTHORITY NOR BASIS FOR DEDUCTION OF THE BONUS TIME BECAUSE OF ELIMINATION OF A PART OF THE ESTIMATED WORK.

THE CONTENTION WOULD APPEAR TO BE WITHOUT MERIT. THE BASIS OF THE STIPULATION FOR THE PAYMENT OF A BONUS WAS FOR TIME AND CONSEQUENT EXPENSE SAVED IN DOING THE ESTIMATED WORK. A PART OF THE ESTIMATED WORK BEING ELIMINATED, THERE WAS NO TIME SAVED IN DOING SAME AND NO EXPENSE SAVED TO THE GOVERNMENT THEREBY. IT BECAME UNNECESSARY TO REMOVE 95 CUBIC YARDS OF MUD FROM THE BINS AND TO INSTALL FOUR OF THE CHUTES, WHICH, IN EFFECT, WAS AN ELIMINATION OF THE WORK FROM THAT ESTIMATED, WHICH AUTOMATICALLY CARRIED WITH IT A CORRESPONDING DIMINUTION IN THE TIME REQUIRED THEREFOR. THE CONTRACTOR WAS ALLOWED ADDITIONAL PROPORTIONATE TIME FOR DOING ADDITIONAL WORK AND THE AGREEMENT MUST BE UNDERSTOOD AS RESERVING TO THE GOVERNMENT THE RIGHT TO MAKE A PROPORTIONATE REDUCTION OF TIME WHEN WORK WAS ELIMINATED.

UPON CAREFUL CONSIDERATION OF THE MATTER, THIS OFFICE CONCURS IN THE VIEW EXPRESSED IN INDORSEMENT DATED FEBRUARY 19, 1927, OF THE DISTRICT ENGINEER, AND IN INDORSEMENT DATED FEBRUARY 23, 1927, OF THE DIVISION ENGINEER, THAT THERE IS NO BASIS FOR THE CLAIM, WHICH MUST BE, AND IS, DISALLOWED.