B-108458, MARCH 25, 1952, 31 COMP. GEN. 479

B-108458, MARCH 25, 1952, 31 COMP. GEN. 479

CONTRACTS - PRICE ADJUSTMENT - SUPPLIER'S ERRORS A STIPULATION IN A CONTRACT FOR THE ADJUSTMENT OF PRICES TO CONFORM WITH PRICES IN EFFECT AT TIME OF SHIPMENT AND FOR THE RELIEF OF A CONTRACTOR OF RESPONSIBILITY FOR CLERICAL OR TYPOGRAPHICAL ERRORS RELATES TO ERRORS MADE BY THE CONTRACTOR ONLY AND DOES NOT EXTEND TO ERRORS IN PRICE QUOTATIONS MADE BY CONTRACTOR'S SUPPLIERS.

COMPTROLLER GENERAL WARREN TO H. NUNN, CIVIL AERONAUTICS ADMINISTRATION MARCH 25, 1952:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 7, 1952, TRANSMITTING A VOUCHER IN THE AMOUNT OF $138.87, STATED IN FAVOR OF DUPLEX TRUCK COMPANY UNDER CONTRACT NO. OCA-28669, WITH THE REQUEST THAT A DECISION BE RENDERED AS TO WHETHER PAYMENT THEREON IS AUTHORIZED.

UNDER THE CONTRACT, WHICH WAS CONSUMMATED ON JUNE 20, 1950, IT WAS AGREED THAT THE CONTRACTOR WOULD FURNISH REPAIR AND REPLACEMENT PARTS, INCLUDING ACCESSORIES, FOR DUPLEX TRUCK COMPANY'S 8 KVA ENGINE GENERATOR SETS AS MIGHT BE REQUIRED AND ORDERED BY THE CIVIL AERONAUTICS ADMINISTRATION DURING THE FISCAL YEAR BEGINNING JULY 1, 1950, AND ENDING JUNE 30, 1951, FOR THE PRICES SET FORTH IN A PRICE LIST FURNISHED BY THE CONTRACTOR. THE COVER OF SAID PRICE LIST, IT WAS STIPULATED AS FOLLOWS:

PRICES WILL BE ADJUSTED TO THE CORPORATION'S PRICES IN EFFECT AT TIME OF SHIPMENT WITH CEILING OF 20 PERCENT OVER QUOTED PRICES.

NOT RESPONSIBLE FOR CLERICAL OR TYPOGRAPHICAL ERRORS.

ON JUNE 27, 1951, THE GOVERNMENT ISSUED TO THE CONTRACTOR PURCHASE ORDER NO. 651-3915 CALLING FOR DELIVERY OF TWO ITEMS UNDER THE CONTRACT, ONE OF WHICH WAS AN EXCITER ARMATURE, PART NO. D1919-1. THE PURCHASE ORDER STIPULATED A PRICE OF $28.27 FOR THE PART IN QUESTION, WHICH WAS THE PRICE AT WHICH IT WAS LISTED IN THE REFERRED-TO PRICE LIST.

THE RECORD SHOWS THAT THE PART WAS FURNISHED THE GOVERNMENT UNDER DATE OF SEPTEMBER 10, 1951; THAT THE CONTRACTOR BILLED THE GOVERNMENT ON ITS INVOICE DATED SEPTEMBER 14, 1951, FOR THE SUM OF $181.51, WHICH INCLUDED THE AMOUNT OF $172.79 AS THE PURCHASE PRICE OF THE PART IN QUESTION, THE AMOUNT OF $4.83 AS THE PURCHASE PRICE OF ANOTHER PART, NOT HERE INVOLVED, AND THE AMOUNT OF $3.89 AS REPRESENTING PREPAID POSTAGE ON THE ITEMS; THAT PAYMENT WAS MADE TO THE CONTRACTOR ON D.O. VOUCHER NO. 103098, JANUARY 1952 ACCOUNTS OF H. ROGERS, IN THE NET AMOUNT OF $42.64, WHICH INCLUDED THE AMOUNT OF $33.92 FOR PART NO. D1919-1, REPRESENTING THE LIST PRICE THEREFOR OF $28.27, PLUS 20 PERCENT, THE AMOUNT OF $4.83 FOR THE OTHER PART, AND THE AMOUNT OF $3.89 FOR THE POSTAGE; AND THAT BY LETTER OF JANUARY 18, 1952, THE CONTRACTOR SUBMITTED THE VOUCHER HERE INVOLVED FOR THE AMOUNT DEDUCTED FROM ITS INVOICE.

IN SUPPORT OF THE VOUCHER, THE CONTRACTOR CONTENDS, INSOFAR AS MATERIAL, THAT THE PRICE OF $28.27 SHOWN IN THE REFERRED-TO PRICE LIST WAS CORRECTLY TAKEN FROM THE PRICE LIST OF PARTS WHICH HAD BEEN FURNISHED TO THE CONTRACTOR BY ITS SUPPLIER, BUT THAT IT TURNED OUT THAT THE SUPPLIER HAD MADE AN ERROR; THAT THE CORRECT PRICE FOR THE PART, AS SHOWN ON THE SUPPLIER'S INVOICE TO THE CONTRACTOR, WAS $172.79; AND THAT THE CONTRACTOR IS ENTITLED TO MAKE THE CORRECTION BY REASON OF THE STIPULATION APPEARING ON THE PRICE LIST TO THE EFFECT THAT THE CONTRACTOR WAS NOT TO BE HELD RESPONSIBLE FOR CLERICAL OR TYPOGRAPHICAL ERRORS.

AS INDICATED IN YOUR LETTER, NO LEGAL BASIS EXISTS FOR PAYMENT TO THE CONTRACTOR OF ANY AMOUNT IN ADDITION TO $28.27, PLUS THE 20 PERCENT ALLOWABLE INCREASE, FOR THE PART INVOLVED. THE STIPULATION APPEARING ON THE PRICE LIST RELATIVE TO RESPONSIBILITY FOR ERRORS REASONABLY MUST BE HELD TO RELATE ONLY TO ERRORS MADE BY THE CONTRACTOR IN COMPILING THE PRICE LIST AND NOT TO EXTEND TO ERRORS MADE BY THE CONTRACTOR'S SUPPLIERS IN THEIR QUOTATIONS.

ACCORDINGLY, THE VOUCHER, TOGETHER WITH RELATED PAPERS, IS RETURNED HEREWITH, AND YOU ARE ADVISED THAT PAYMENT THEREON IS NOT AUTHORIZED.