B-127301, APR. 19, 1956

B-127301, APR. 19, 1956

TO MR. HARRY NUNN, AUTHORIZED CERTIFYING OFFICER, CIVIL AERONAUTICS ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 2, 1956, TRANSMITTED HERE BY THE ADMINISTRATIVE AUDIT BRANCH, CIVIL AERONAUTICS ADMINISTRATION, REQUESTING A DECISION AS TO WHETHER YOU ARE AUTHORIZED TO CERTIFY FOR PAYMENT A VOUCHER DATED MARCH 2, 19565, IN THE AMOUNT OF $1,369.46, DRAWN IN FAVOR OF THE PACIFIC TELEPHONE AND TELEGRAPH COMPANY, SAN FRANCISCO, CALIFORNIA, IN CONNECTION WITH CONTRACT NO. C4CA-3361-A DATED JUNE 9, 1955.

UNDER THE TERMS OF THE CONTRACT THE PACIFIC TELEPHONE AND TELEGRAPH COMPANY AGREED TO FURNISH TO THE CIVIL AERONAUTICS ADMINISTRATION, LOS ANGELES, CALIFORNIA, ONE REMOTE CONTROL CIRCUIT AND ONE DC DIALING CIRCUIT BETWEEN THE MARYSVILLE, CALIFORNIA, INTERSTATE AIRWAY COMMUNICATIONS STATION AT THE MARYSVILLE AIRPORT AND THE WILLIAMS VOR RADIO RANGE FACILITY IN COLUSA COUNTY. THE CONTRACT PROVIDED THAT---

"AT THE VOR END OF THE CIRCUIT THE COMPANY SHALL TERMINATE ITS LINES IN A DEMARCATION BOX MOUNTED ON THE OUTSIDE OF THE BUILDING TO BE PROVIDED BY THE CAA. * * * THE TELEPHONE COMPANY WILL FURNISH, MAINTAIN AND INSTALL UNDERGROUND CABLE FROM THE TERMINAL POLE TO THE VOR BUILDING.'

THE CONTRACT FIXED THE MONTHLY CHARGE FOR THE SERVICE AT $156.25 AND A NONRECURRING INSTALLATION CHARGE OF $13.

IT IS REPORTED THAT THE NONRECURRING CHARGE SET OUT IN THE CONTRACT WAS BASED ON THE ERRONEOUS BELIEF OF THE SUBCONTRACTOR THAT THE CIRCUITS WERE TO BE TERMINATED AT THE SRA RADIO RANGE AND THAT CONSTRUCTION OF ADDITIONAL UNDERGROUND CONDUIT WOULD NOT BE REQUIRED, SINCE UNDERGROUND CONDUIT WAS ALREADY IN PLACE AT THAT POINT. HOWEVER, SINCE THE CONTRACT REQUIRED THE CIRCUITS TO BE TERMINATED AT THE VOR RADIO RANGE, AN ADDITIONAL UNDERGROUND CONDUIT HAD TO BE CONSTRUCTED AND THE VOUCHER COVERS THE CHARGE FOR THE ADDITIONAL CONSTRUCTION.

YOU RECOMMEND FAVORABLE CONSIDERATION OF THE VOUCHER, CONCURRING IN THE RECOMMENDATION OF THE CHIEF, CONTRACT AND CLAIMS SECTION OF YOUR OFFICE, WHO EXPRESSES THE VIEW THAT A MISTAKE WAS MADE IN THE BID ON WHICH THE CONTRACT IS BASED. INFORMAL ADVICE FROM THE CIVIL AERONAUTICS ADMINISTRATION REFLECTS THE VIEW THAT THE AMOUNT FIXED IN THE CONTRACT FOR THE NONRECURRING CHARGE ($13) IS OBVIOUSLY ERRONEOUS; THAT THE NONRECURRING CHARGE FOR CONSTRUCTION OF THE UNDERGROUND CONDUIT SHOULD BE APPROXIMATELY THE AMOUNT OF THE VOUCHER; AND THAT THE CONTRACTING OFFICER SHOULD HAVE TAKEN NOTICE OF THE ERROR, IN VIEW OF THE FACT THAT PERFORMANCE OF THE CONTRACT WOULD REQUIRE THE CONSTRUCTION OF ADDITIONAL UNDERGROUND CONDUIT.

SINCE IT APPEARS THAT THERE WAS NO MEETING OF THE MINDS OF THE PARTIES, IT IS CONCLUDED THAT THE CONTRACT PROVISION AS TO THE NONRECURRING CHARGE WAS INVALID AND THAT PAYMENT FOR THE CONSTRUCTION OF THE UNDERGROUND CONDUIT SHOULD BE MADE ON A QUANTUM MERUIT BASIS. THE CONTRACTOR'S ESTIMATED COST OF THE ADDITIONAL CONSTRUCTION WAS $1,410, AND THE REPORTED ADMINISTRATIVE VIEW IS THAT THE AMOUNT OF THE VOUCHER ($1,369.46) IS A REASONABLE CHARGE FOR THE ADDITIONAL CONSTRUCTION. ACCORDINGLY, THE VOUCHER MAY BE CERTIFIED FOR PAYMENT IN THAT AMOUNT.

A REFERENCE TO THIS DECISION SHOULD ACCOMPANY THE VOUCHER.