B-124696, OCT. 7, 1955

B-124696: Oct 7, 1955

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LIMITED: REFERENCE IS MADE TO YOUR LETTER OF JUNE 3. THE FACTS AND CIRCUMSTANCES PERTAINING TO YOUR CLAIM ARE FULLY COVERED IN DETAIL IN THE PREVIOUS CORRESPONDENCE AND THEREFORE WILL NOT BE REPEATED. YOU NOW STATE THAT YOU DID NOT IN ANY WAY CONTEND THAT YOU WERE ENTITLED TO FURTHER REIMBURSEMENT UNDER THE STRICT TERMS AND PROVISIONS OF THE CONTRACTS AND AMENDMENTS. THAT YOU DID IN FACT EMPHASIZE AT SEVERAL POINTS THAT UNDER A STRICT INTERPRETATION OF THE CONTRACTS YOU WERE NOT ENTITLED TO FURTHER PAYMENTS BUT THAT. CONSIDERATION SHOULD BE GIVEN TO THE GRANTING OF EX GRATIA PAYMENTS TO MAKE GOOD THOSE LOSSES INCURRED BY YOU WHICH WERE NOT PROVIDED FOR IN THE CONTRACT. IT IS REGRETTED THAT YOU INCURRED LOSSES IN THE PERFORMANCE OF THE CONTRACTS.

B-124696, OCT. 7, 1955

TO WORLD WIDE PICTURES, LIMITED:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 3, 1955, AND TO PRIOR CORRESPONDENCE, RELATIVE TO YOUR CLAIM FOR REFUND OF 351.17.OD POUNDS STERLING WITHHELD ON D.). VOUCHER NO. 147, DATED APRIL 7, 1954, AND 153.19.3D POUNDS STERLING WITHHELD ON D.O. VOUCHER NO. 405, DATED DECEMBER 1953, REPRESENTING UNAUTHORIZED CHARGES DEVELOPED IN THE AUDIT OF YOUR ACCOUNTS MAINTAINED IN THE PERFORMANCE OF CONTRACTS NOS. SRE 340 AND SRE 485.

THE FACTS AND CIRCUMSTANCES PERTAINING TO YOUR CLAIM ARE FULLY COVERED IN DETAIL IN THE PREVIOUS CORRESPONDENCE AND THEREFORE WILL NOT BE REPEATED. YOU NOW STATE THAT YOU DID NOT IN ANY WAY CONTEND THAT YOU WERE ENTITLED TO FURTHER REIMBURSEMENT UNDER THE STRICT TERMS AND PROVISIONS OF THE CONTRACTS AND AMENDMENTS; THAT YOU DID IN FACT EMPHASIZE AT SEVERAL POINTS THAT UNDER A STRICT INTERPRETATION OF THE CONTRACTS YOU WERE NOT ENTITLED TO FURTHER PAYMENTS BUT THAT, IN VIEW OF ALL THE PECULIAR CIRCUMSTANCES EXISTING AT THE TIME OF THE MAKING OF THE FILMS, CONSIDERATION SHOULD BE GIVEN TO THE GRANTING OF EX GRATIA PAYMENTS TO MAKE GOOD THOSE LOSSES INCURRED BY YOU WHICH WERE NOT PROVIDED FOR IN THE CONTRACT.

IT IS REGRETTED THAT YOU INCURRED LOSSES IN THE PERFORMANCE OF THE CONTRACTS. THIS OFFICE, HOWEVER, AS WELL AS ALL AGENTS AND OFFICERS OF THE UNITED STATES, HAS NO AUTHORITY TO DISPOSE OF MONEY OR PROPERTY OF THE GOVERNMENT, TO SURRENDER A RIGHT VESTED IN THE GOVERNMENT, TO WAIVE CONTRACTUAL RIGHTS WHICH HAVE ACCRUED TO THE GOVERNMENT, OR TO MODIFY EXISTING CONTRACTS WITHOUT COMPENSATING BENEFIT TO THE GOVERNMENT. SEE AMERICAN SALES CORPORATION V. UNITED STATES, 27 F.2D 389, AFFIRMED 32 F.2D 141, CERTIORARI DENIED 280 U.S. 574, AND PACIFIC HARDWARE CO. V. UNITED STATES, 49 C.CLS. 327, 335.

IT CLEARLY APPEARS THAT UNDER THE TERMS OF THE CONTRACTS HERE INVOLVED THE WITHHOLDING OR THE AMOUNTS NOW CLAIMED BY YOU WAS PROPER. CONSEQUENTLY, IN CONFORMITY WITH THE LIMITATIONS PLACED UPON THE AUTHORITY OF OUR OFFICE IN MATTERS OF THIS NATURE, AS RELATED ABOVE, WE HAD NO ALTERNATIVE OTHER THAN TO DISALLOW YOUR CLAIM FOR REFUND. ACCORDINGLY, YOU ARE ADVISED THAT THE ACTION PREVIOUSLY TAKEN BY US WITH RESPECT TO YOUR CLAIM MUST BE SUSTAINED.