B-130291, JUL. 15, 1957

B-130291: Jul 15, 1957

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SPEED: REFERENCE IS MADE TO YOUR LETTERS DATED MARCH 15 AND APRIL 10. NO PROVISION WAS MADE IN THE CONTRACT FOR ANY CHANGE IN THE CONTRACT PRICE. HAS NO AUTHORITY TO WAIVE CONTRACTUAL RIGHTS WHICH HAVE ACCRUED TO THE GOVERNMENT. WHILE IT MAY BE THAT THE CONTRACT PRICE WAS FIXED ON THE BASIS OF THE SALARIES RECEIVED BY PUBLIC SCHOOL TEACHERS. THAT FACT ALONE IS NOT SUFFICIENT FOR THE PAYMENT OF AN ADDITIONAL AMOUNT EQUIVALENT TO THE INCREASE IN PUBLIC SCHOOL TEACHERS. AS YOU HAVE BEEN PAID THE FULL CONTRACT PRICE FOR THE SERVICES RENDERED. THERE IS NO LEGAL OR OTHER BASIS FOR PAYMENT OF ANY AMOUNT IN ADDITION TO SUCH PRICE. MAY HAVE BEEN IMPROPERLY AMENDED TO PROVIDE FOR CERTAIN INCREASES IN TEACHERS' SALARIES PROVIDED BY THE STATE OF FLORIDA BOARD OF EDUCATION.

B-130291, JUL. 15, 1957

TO MR. FRANK T. SPEED:

REFERENCE IS MADE TO YOUR LETTERS DATED MARCH 15 AND APRIL 10, 1957, REQUESTING REVIEW OF SETTLEMENT DATED FEBRUARY 18, 1957, WHICH DISALLOWED YOUR CLAIM FOR ADDITIONAL COMPENSATION FOR SERVICES RENDERED THE CRAIG AIR FORCE BASE ELEMENTARY SCHOOL UNDER CONTRACT NO. AF 01 (602/-338, DATED AUGUST 1, 1955.

UNDER THE TERMS OF THE CONTRACT YOU AGREED TO ACT AS PRINCIPAL OF THE ELEMENTARY SCHOOL AT THE CRAIG AIR FORCE BASE FOR THE PERIOD FROM AUGUST 1, 1955, UNTIL JUNE 30, 1956, FOR THE SUM OF $5,400. NO PROVISION WAS MADE IN THE CONTRACT FOR ANY CHANGE IN THE CONTRACT PRICE. IT APPEARS THAT EFFECTIVE SEPTEMBER 1, 1955, THE STATE OF ALABAMA BOARD OF EDUCATION INCREASED TEACHERS' SALARIES IN THAT STATE BY AN AVERAGE AMOUNT OF $600 PER YEAR. YOU NOW SEEK PAYMENT OF THE DIFFERENCE BETWEEN THE SALARY CONTRACTED FOR WITH THE AIR FORCE AND THE INCREASE GRANTED BY THE ALABAMA BOARD OF EDUCATION.

THE ACCEPTANCE OF YOUR OFFER TO FURNISH THE SERVICES AT THE PRICE STATED GAVE RISE TO A BINDING CONTRACT. OUR OFFICE, AS WELL AS ALL AGENTS AND OFFICERS OF THE UNITED STATES, HAS NO AUTHORITY TO WAIVE CONTRACTUAL RIGHTS WHICH HAVE ACCRUED TO THE GOVERNMENT, OR TO MODIFY EXISTING CONTRACTS WITHOUT A COMPENSATING BENEFIT TO THE GOVERNMENT. SEE AMERICAN SALES CORP. V. UNITED STATES, 27 F.2D 389, AND PACIFIC HARDWARE AND STEEL COMPANY V. UNITED STATES, 49 C.CLS. 327, 335. WHILE IT MAY BE THAT THE CONTRACT PRICE WAS FIXED ON THE BASIS OF THE SALARIES RECEIVED BY PUBLIC SCHOOL TEACHERS, THAT FACT ALONE IS NOT SUFFICIENT FOR THE PAYMENT OF AN ADDITIONAL AMOUNT EQUIVALENT TO THE INCREASE IN PUBLIC SCHOOL TEACHERS, IN THE ABSENCE OF A CONTRACT PROVISION TO THAT EFFECT. AS YOU HAVE BEEN PAID THE FULL CONTRACT PRICE FOR THE SERVICES RENDERED, THERE IS NO LEGAL OR OTHER BASIS FOR PAYMENT OF ANY AMOUNT IN ADDITION TO SUCH PRICE.

THE FACT THAT CERTAIN CONTRACTS COVERING TEACHING SERVICES AT EGLIN AIR FORCE BASE, FLORIDA, MAY HAVE BEEN IMPROPERLY AMENDED TO PROVIDE FOR CERTAIN INCREASES IN TEACHERS' SALARIES PROVIDED BY THE STATE OF FLORIDA BOARD OF EDUCATION, DOES NOT AUTHORIZE ANY INCREASE IN YOUR CONTRACT PRICE. NOR IS THIS CONCLUSION CHANGED BY THE FACT THAT ADMINISTRATIVE ACTION MAY HAVE BEEN TAKEN--- AS YOU STATE IN YOUR LETTER OF MARCH 15, 1957--- TO REALLOCATE FUNDS FOR PAYMENT OF INCREASES IN TEACHERS' SALARIES.