B-133623, SEP. 12, 1957

B-133623, SEP. 12, 1957

TO MISS ESTELLE M. BLACK, AUTHORIZED CERTIFYING OFFICER, CIVIL AERONAUTICS ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER DATED AUGUST 27, 1957, WITH ENCLOSURES, REQUESTING A DECISION WHETHER MANAGEMENT CONTROL SYSTEMS, INC., WASHINGTON, D.C., SHOULD BE ALLOWED A $200 TYPEWRITER RENTAL CHARGE INCURRED BY REASON OF A TIME EXTENSION OF CONTRACT NO. CCA32105 BECAUSE OF THE GOVERNMENT'S DELAY IN DELIVERING THE WORK TO THE CONTRACTOR.

CONTRACT NO. CCA-32105 REQUIRED MANAGEMENT CONTROL SYSTEMS, INC., TO DESIGN, FURNISH, AND INSTALL A COMPLETE SYSTEM FOR MAINTENANCE AND PUBLICATION OF A NATIONAL SUPPLY CATALOG FOR THE CIVIL AERONAUTICS ADMINISTRATION AT A PRICE OF 011.00 PER 00000 REFERENCE PAGE 01 PER ITEM DESCRIPTION PAGE AND ?20 PER CONTRACT PRINT. ALL THE WORK UNDER THE CONTRACT WAS TO BE COMPLETED ON OR BEFORE FEBRUARY 1, 1957. BECAUSE UNFORESEEN DELAYS WERE ENCOUNTERED IN THE CATALOGING PROGRAM BY THE CIVIL AERONAUTICS ADMINISTRATION AND BECAUSE THE ACTUAL WORK REQUIRED EXCEEDED THE ADMINISTRATION'S ORIGINAL ESTIMATES, THE CONTRACT WAS AMENDED TO EXTEND THE COMPLETION DATE TO MARCH 31, 1957. PRIOR TO THE ISSUANCE OF THE CONTRACT MODIFICATION, THE CONTRACTOR REQUESTED ALLOWANCE OF ADDITIONAL COMPENSATION, INDICATING THAT IT HAD BEEN NECESSARY TO RENT SPECIAL TYPEWRITERS TO PERFORM THE CONTRACT AND THAT IT WOULD BE NECESSARY TO RETAIN THEM ON A STAND-BY BASIS SO THAT THEY WOULD BE READY FOR IMMEDIATE USE AS SOON AS THE GOVERNMENT FURNISHED MATERIAL WAS DELIVERED. ALTHOUGH THE MODIFICATION PROVIDES THAT, OUTSIDE OF THE INCREASED QUANTITIES AND TIME EXTENSION, ALL THE REMAINING CONTRACT TERMS AND CONDITIONS SHALL REMAIN UNCHANGED, THE CONTRACTOR'S ACCEPTANCE WAS QUALIFIED BY ITS LETTER OF MARCH 12, 1957, REFERRING TO PRIOR VERBAL UNDERSTANDING THAT THIS WAS WITHOUT PREJUDICE TO THE CONTRACTOR'S CLAIM FOR ADDITIONAL COMPENSATION. THE CONTRACTOR HAS SUBMITTED A CLAIM FOR FOR ADDITIONAL COMPENSATION. THE CONTRACTOR HAS SUBMITTED A CLAIM FOR EXTENSION OF THE CONTRACT BEYOND FEBRUARY 1, 1957.

THE DELAY BY THE GOVERNMENT CONSTITUTED AN ADEQUATE EXCUSE FOR THE CONTRACTOR'S FAILURE TO COMPLETE THE WORK ON TIME, AND MADE NECESSARY THE EXTENSION OF TIME, WHICH COULD NOT HAVE BEEN REQUIRED WITHOUT THE CONTRACTOR'S CONSENT. THE CONTRACTOR WAS THEREFORE ENTITLED TO SO MUCH OF ITS ADDITIONAL EXPENSE AS MIGHT REASONABLY BE ATTRIBUTED TO THE GOVERNMENT'S DELAY. BECAUSE OF THE DELAY THE CONTRACTOR WAS REQUIRED TO RETAIN THE TYPEWRITERS ON A STAND-BY BASIS BEYOND THE ORIGINAL TERM OF THE CONTRACT TO ALLOW IMMEDIATE PRODUCTION ONCE THE GOVERNMENT-FURNISHED MATERIAL WAS RELEASED TO THE CONTRACTOR.

IN THESE CIRCUMSTANCES, YOU MAY CERTIFY THE SUBJECT VOUCHER FOR IT IS DETERMINED ADMINISTRATIVELY TO BE FAIR AND REASONABLE COMPENSATION FOR THE CONTRACTOR'S INCREASED COSTS.

THE FILE AND VOUCHERS TRANSMITTED WITH YOUR LETTER ARE RETURNED HEREWITH.