B-127777, MAY 9, 1956

B-127777: May 9, 1956

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- REQUESTING AN ADVANCE DECISION AS TO WHETHER YOU ARE AUTHORIZED TO MAKE PAYMENT ON A VOUCHER TRANSMITTED THEREWITH IN FAVOR OF THE GENERAL ELECTRIC COMPANY IN THE AMOUNT OF $44. WHICH SERVICES WERE FURNISHED UNDER CONTRACT NO. THAT BY VOUCHER NO. 450 IN YOUR FEBRUARY 1956 ACCOUNTS THE CLAIMANT WAS PAID THE SUM OF $220. THE CONTRACTOR'S APPLICABLE ESTABLISHED PRICE FOR SUCH EQUIPMENT IS HIGHER OR LOWER THAN THE CONTRACTOR'S APPLICABLE ESTABLISHED PRICE AT THE DATE OF THIS CONTRACT. THE CONTRACTOR SHALL CERTIFY THE PERCENT INCREASE OR PERCENT DECREASE TO THE CONTRACTING OFFICER AND THE CONTRACT PRICE WILL BE ADJUSTED ACCORDINGLY: * * *" IT SEEMS CLEAR FROM A READING OF THE ABOVE-QUOTED PROVISIONS OF THE CONTRACT THAT THE SAME WERE INTENDED TO HAVE APPLICATION ONLY TO THE EQUIPMENT TO BE FURNISHED.

B-127777, MAY 9, 1956

TO MR. B. S. CURTIS, DISBURSING OFFICER, OFFICE OF THE DISTRICT ENGINEER:

THERE HAS BEEN TRANSMITTED HERE BY THE OFFICE OF THE CHIEF OF ENGINEERS YOUR LETTER OF APRIL 9, 1956, WITH ENCLOSURES--- YOUR FILE OVNVL--- REQUESTING AN ADVANCE DECISION AS TO WHETHER YOU ARE AUTHORIZED TO MAKE PAYMENT ON A VOUCHER TRANSMITTED THEREWITH IN FAVOR OF THE GENERAL ELECTRIC COMPANY IN THE AMOUNT OF $44, REPRESENTING AN ADDITIONAL AMOUNT CLAIMED TO BE DUE FOR THE SERVICES OF AN ERECTING ENGINEER AT THE RATE OF $11 PER DAY FOR FOUR DAYS, WHICH SERVICES WERE FURNISHED UNDER CONTRACT NO. DA-40-058-ENG-1908, DATED APRIL 16, 1953.

IT APPEARS FROM THE PAPERS TRANSMITTED BY YOU THAT THE GENERAL ELECTRIC COMPANY SUBMITTED ITS INVOICE IN THE AMOUNT OF $264, OR AT THE RATE OF $66 PER DAY FOR THE FOUR DAYS INVOLVED, AND THAT BY VOUCHER NO. 450 IN YOUR FEBRUARY 1956 ACCOUNTS THE CLAIMANT WAS PAID THE SUM OF $220, OR AT THE CONTRACT RATE OF $55 PER DAY. THE VOUCHER UNDER CONSIDERATION COVERS THE DIFFERENCE BETWEEN THE RATE CLAIMED AND THE RATE PAID, THE PRESENT CLAIM BEING PREDICATED ON THE APPLICATION OF THE PROVISIONS OF ARTICLE 26--- ESCALATION--- OF THE GENERAL PROVISIONS OF THE CONTRACT TO THE FACTS HERE INVOLVED.

ARTICLE 26 OF THE GENERAL PROVISIONS PROVIDES, IN PART, AS FOLLOWS:

"IF AT THE TIME OF SHIPMENT OF THE EQUIPMENT, OR EACH COMPLETE UNIT THEREOF, THE CONTRACTOR'S APPLICABLE ESTABLISHED PRICE FOR SUCH EQUIPMENT IS HIGHER OR LOWER THAN THE CONTRACTOR'S APPLICABLE ESTABLISHED PRICE AT THE DATE OF THIS CONTRACT, THE CONTRACTOR SHALL CERTIFY THE PERCENT INCREASE OR PERCENT DECREASE TO THE CONTRACTING OFFICER AND THE CONTRACT PRICE WILL BE ADJUSTED ACCORDINGLY: * * *"

IT SEEMS CLEAR FROM A READING OF THE ABOVE-QUOTED PROVISIONS OF THE CONTRACT THAT THE SAME WERE INTENDED TO HAVE APPLICATION ONLY TO THE EQUIPMENT TO BE FURNISHED, AND WERE NOT INTENDED TO SERVE AS A BASIS FOR CLAIMING INCREASED COMPENSATION FOR THE ENGINEERING SERVICES INVOLVED. OTHER WORDS, WE AGREE WITH THE VIEWS EXPRESSED BY COLONEL G. M. DORLAND, THE CONTRACTING OFFICER, TO THE EFFECT THAT NO AUTHORIZATION IS FOUND IN THE CONTRACT FOR THE PAYMENT FOR ERECTING ENGINEER SERVICES AT A RATE IN EXCESS OF THE CONTRACT RATE OF $55 PER DAY.

ACCORDINGLY, YOU ARE INFORMED THAT PAYMENT ON THE VOUCHER TRANSMITTED BY YOU IS NOT AUTHORIZED, AND THE SAME WILL BE RETAINED IN THIS OFFICE.