B-126966, MAR. 30, 1956

B-126966: Mar 30, 1956

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INC.: REFERENCE IS MADE TO YOUR LETTER OF JANUARY 11. YOU WERE AUTHORIZED TO PROCEED WITH THE EMERGENCY REPAIR WORK AT THE CONTRACT SITE NECESSITATED BY THE HURRICANE OF AUGUST 31. THE FINAL PARAGRAPH OF THE LETTER IS AS FOLLOWS: "UPON COMPLETION OF THIS EMERGENCY WORK. PAYMENT WILL BE MADE INCLUDING 10 PERCENT OVERHEAD AND 10 PERCENT PROFIT. THE RECORDS SHOW THAT YOU PROCEEDED ON THE BASIS OF THAT LETTER AND THAT THE WORK WAS COMPLETED BY YOU AND APPROVED BY THE CONTRACTING OFFICIALS ON OCTOBER 15. UNDER WHICH THE "AMOUNT OF CONTRACT" IS FOLLOWED BY THE PROVISION "TO BE DETERMINED AFTER AUDIT OF CERTIFIED STATEMENTS. IN WHICH IT WAS STATED THAT THE FINAL COSTS TO THE GOVERNMENT FOR ALL WORK SHALL BE DETERMINED AFTER ITS COMPLETION AND AFTER AUDIT OF CERTIFIED STATEMENTS TO BE SUBMITTED BY YOU.

B-126966, MAR. 30, 1956

TO CANCIAN COMPANY, INC.:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 11, 1956, WITH ENCLOSURES, REQUESTING REVIEW OF THAT PORTION OF CERTIFICATE NO. 2268209 DATED DECEMBER 20, 1955, WHICH DISALLOWED $912.57 OF THE TOTAL AMOUNT OF $1,082.09 CLAIMED BY YOU AS ADDITIONAL COMPENSATION EARNED IN CONNECTION WITH THE EMERGENCY REPAIR WORK COMPLETED AT THE UNITED STATES POST OFFICE AND COURTHOUSE, AND THE UNITED STATES POST OFFICE ANNEX, PROVIDENCE, RHODE ISLAND, UNDER CONTRACT NO. GS-01B-1560, DATED SEPTEMBER 29, 1954.

THE RECORD SHOWS THAT BY ADMINISTRATIVE LETTER DATED SEPTEMBER 8, 1954, YOU WERE AUTHORIZED TO PROCEED WITH THE EMERGENCY REPAIR WORK AT THE CONTRACT SITE NECESSITATED BY THE HURRICANE OF AUGUST 31, 1954. THE FINAL PARAGRAPH OF THE LETTER IS AS FOLLOWS:

"UPON COMPLETION OF THIS EMERGENCY WORK, SUBMIT ALL CERTIFIED STATEMENTS OF MATERIALS AND LABOR, AND PAYMENT WILL BE MADE INCLUDING 10 PERCENT OVERHEAD AND 10 PERCENT PROFIT, IN ACCORDANCE WITH GOVERNMENT REGULATIONS.'

THE RECORDS SHOW THAT YOU PROCEEDED ON THE BASIS OF THAT LETTER AND THAT THE WORK WAS COMPLETED BY YOU AND APPROVED BY THE CONTRACTING OFFICIALS ON OCTOBER 15, 1954. DURING THE PERIOD OF PERFORMANCE THE CONTRACTING PARTIES EXECUTED A FORMAL CONTRACT ON SEPTEMBER 29, 1954, UNDER WHICH THE "AMOUNT OF CONTRACT" IS FOLLOWED BY THE PROVISION "TO BE DETERMINED AFTER AUDIT OF CERTIFIED STATEMENTS, BUT SHALL NOT EXCEED TWENTY-THREE THOUSAND DOLLARS ($23,000.00).' ALSO, ON SEPTEMBER 30, 1954, YOU ACKNOWLEDGED AND CONFIRMED A LETTER OF SEPTEMBER 29, 1954, FROM THE DEPUTY REGIONAL DIRECTOR, PUBLIC BUILDINGS SERVICE, BOSTON 9, MASSACHUSETTS, IN WHICH IT WAS STATED THAT THE FINAL COSTS TO THE GOVERNMENT FOR ALL WORK SHALL BE DETERMINED AFTER ITS COMPLETION AND AFTER AUDIT OF CERTIFIED STATEMENTS TO BE SUBMITTED BY YOU, AND SPECIFICALLY STATED THAT SUCH COSTS SHALL NOT EXCEED TWENTY-THREE THOUSAND DOLLARS ($23,000).

THE RECORD FURTHER SHOWS THAT YOU PRESENTED STATEMENTS WITH YOUR CERTIFIED INVOICE DATED NOVEMBER 18, 1954, PURSUANT TO CONTRACT REQUIREMENTS IN THE TOTAL AMOUNT OF $23,912.57 WHICH WERE REPRESENTATIVE OF THE "TOTAL AMOUNT TO BE BILLED UNDER THIS CONTRACT.' IN THE ADMINISTRATIVE AUDIT OF YOUR STATEMENTS OF WHICH YOU WERE ADVISED ON JANUARY 23, 1955, SUSPENSIONS WERE STATED IN A TOTAL AMOUNT OF $1,082.09 (EXCLUDING A DEDUCTION IN THE AMOUNT OF $10,635.04, REPRESENTING THE FIRST PROGRESS PAYMENT MADE TO YOU ON NOVEMBER 29, 1954). A SECOND PROGRESS PAYMENT TO YOU IN THE AMOUNT OF $12,195.44 WAS MADE ON JANUARY 26, 1955. YOUR CLAIM VOUCHER FOR THE UNPAID BALANCE OF $1,082.09 WAS TRANSMITTED TO OUR OFFICE FOR FINAL DISPOSITION AND IN THE CERTIFICATE DATED DECEMBER 20, 1955, THE AMOUNTS OF $169.52 AND $912.57 WERE ALLOWED AND DISALLOWED, RESPECTIVELY, FOR THE REASONS STATED THEREIN. THUS, THE TOTAL PAYMENTS MADE TO YOU UNDER THE CONTRACT AGGREGATE THE MAXIMUM AMOUNT THAT MAY BE PAID FOR ALL WORK COMPLETED THEREUNDER.

IN YOUR REQUEST FOR REVIEW YOU MAKE REFERENCE TO YOUR LETTER OF OCTOBER 14, 1954, WRITTEN UPON COMPLETION OF THE CONTRACT WORK, WHEREIN YOU REQUESTED MODIFICATION OF YOUR CONTRACT TO INCLUDE CERTAIN SPECIFIED WORK AT AN ADDITIONAL PRICE OF $1,553.33, THUS INCREASING YOUR MAXIMUM CONTRACT PRICE TO $24,533.33. YOUR REQUEST IS PREDICATED ON THE BASIS THAT SUCH ADDITIONAL EMERGENCY WORK WAS DIRECTED BY THE GOVERNMENT'S SUPERINTENDENT OF BUILDINGS AT THE CONTRACT SITE. NEITHER THE ADMINISTRATIVE REPORTS NOR YOUR STATEMENTS TO THE LABOR AND MATERIAL COSTS IN QUESTION AS SET FORTH IN YOUR LETTER WAS OTHER THAN A PART OF THE WORK MADE NECESSARY BY THE HURRICANE AND, THEREFORE, A PART OF THE WORK CONTEMPLATED AT THE TIME THE MAXIMUM COST TO THE GOVERNMENT WAS FIXED BY THE GOVERNMENT'S REPRESENTATIVE AND SPECIFICALLY AGREED TO BY YOU.

ACCORDINGLY, SINCE IT APPEARS THAT YOU HAVE BEEN FULLY COMPENSATED IN THE MAXIMUM CONTRACT AMOUNT AGREED UPON BY YOU, THE SETTLEMENT OF DECEMBER 20, 1955, IS SUSTAINED.