B-116926, OCT. 24, 1955

B-116926: Oct 24, 1955

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

ESQUIRE: REFERENCE IS MADE TO YOUR LETTER OF JUNE 30. IT WAS CONCEDED THAT THE DIRECT COSTS PREVIOUSLY CLAIMED COULD NOT BE ESTABLISHED AND THE CLAIM WAS THEREFORE REVISED TO COVER ONLY THE INCREASED FACTORY OVERHEAD AND GENERAL ADMINISTRATIVE EXPENSE ALLOCABLE TO THE CONTRACT FOR THE PERIOD OF THE DELAY. IT WAS STATED THAT. THE CONTRACTOR WOULD WAIVE ANY AND ALL CLAIMS WHICH IT MAY HAVE IN CONNECTION WITH THE PERFORMANCE OF THIS CONTRACT. PAYMENT OF THIS AMOUNT IS TODAY BEING AUTHORIZED IN FULL AND FINAL SETTLEMENT OF THE CONTRACT.

B-116926, OCT. 24, 1955

TO GAINES V. PALMES, ESQUIRE:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 30, 1954, AND RELATED CORRESPONDENCE, REQUESTING RECONSIDERATION OF OUR DECISION DATED SEPTEMBER 28, 1953, SUSTAINING DISALLOWANCE OF THE CLAIM OF STEWART STEEL PRODUCTS, INC., BROOKLYN, NEW YORK (FORMERLY STEWART TRUCK BODIES, INC.), IN THE AMOUNT OF $46,037.99 AS INCREASED COSTS ALLEGED TO BE DUE FOR DELAY OCCASIONED BY THE GOVERNMENT'S FAILURE TO CARRY OUT ITS OBLIGATIONS IN THE PERFORMANCE OF CONTRACT NO. DA-36-038-ORD 883, DATED JUNE 23, 1950.

IN YOUR LETTER OF JUNE 30, 1954, IT WAS CONCEDED THAT THE DIRECT COSTS PREVIOUSLY CLAIMED COULD NOT BE ESTABLISHED AND THE CLAIM WAS THEREFORE REVISED TO COVER ONLY THE INCREASED FACTORY OVERHEAD AND GENERAL ADMINISTRATIVE EXPENSE ALLOCABLE TO THE CONTRACT FOR THE PERIOD OF THE DELAY. FURTHERMORE, IN YOUR LETTER OF OCTOBER 6, 1955, IT WAS STATED THAT, UPON PAYMENT OF THE SUM OF $35,969.99, THE CONTRACTOR WOULD WAIVE ANY AND ALL CLAIMS WHICH IT MAY HAVE IN CONNECTION WITH THE PERFORMANCE OF THIS CONTRACT.

AFTER CAREFUL CONSIDERATION AND REVIEW OF THE ENTIRE MATTER IN THE LIGHT OF THE ADDITIONAL EVIDENCE AND DATA FURNISHED, IT HAS BEEN DETERMINED THAT THE SUM OF $35,969.99 REPRESENTS A FAIR AND REASONABLE DETERMINATION OF THE ADDITIONAL COSTS INCURRED BY THE CONTRACTOR ATTRIBUTABLE TO THE GOVERNMENT'S FAILURE TO CARRY OUT ITS OBLIGATIONS UNDER THE CONTRACT. ACCORDINGLY, PAYMENT OF THIS AMOUNT IS TODAY BEING AUTHORIZED IN FULL AND FINAL SETTLEMENT OF THE CONTRACT.