B-134017, OCT. 21, 1957

B-134017: Oct 21, 1957

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THE COMPTROLLER GENERAL ON THE RECOMMENDATION OF THE AGENCY HEAD IS AUTHORIZED AND EMPOWERED TO REMIT THE WHOLE OR ANY PART OF SUCH DAMAGES AS IN HIS DISCRETION MAY BE JUST AND EQUITABLE.'. WE HAVE CONSISTENTLY HELD THAT IN VIEW OF THE EXPRESS LANGUAGE OF THIS ACT. THERE IS NO AUTHORITY FOR THE ALLOWANCE OF THE CLAIM.

B-134017, OCT. 21, 1957

TO MR. SAMUEL F. SCHWAG, ATTORNEY AT LAW:

BY LETTER OF OCTOBER 3, 1957, THE DEPARTMENT OF THE ARMY FORWARDED TO THIS OFFICE YOUR LETTER OF APRIL 4, 1956, REQUESTING THAT THE CLAIM OF YOUR CLIENT, AND READING CLOTHING MANUFACTURING COMPANY, INC., NOW BANKRUPT, FOR REMISSION OF $69,617.63 LIQUIDATED DAMAGES COLLECTED UNDER ITS CONTRACT NO. DA 30-280-QM-615, DATED OCTOBER 20, 1949, BE FAVORABLY CONSIDERED ON A EQUITABLE BASIS UNDER THE PROVISIONS OF SECTION 6 OF THE ARMED SERVICES PROCUREMENT ACT OF 1947, 62 STAT. 24.

THIS STATUTE READS, IN PERTINENT PART:

"SEC. 6. WHENEVER ANY CONTRACT MADE ON BEHALF OF THE GOVERNMENT BY THE AGENCY HEAD OR BY OFFICERS AUTHORIZED BY HIM SO TO DO INCLUDES A PROVISION FOR LIQUIDATED DAMAGES FOR DELAY, THE COMPTROLLER GENERAL ON THE RECOMMENDATION OF THE AGENCY HEAD IS AUTHORIZED AND EMPOWERED TO REMIT THE WHOLE OR ANY PART OF SUCH DAMAGES AS IN HIS DISCRETION MAY BE JUST AND EQUITABLE.'

WE HAVE CONSISTENTLY HELD THAT IN VIEW OF THE EXPRESS LANGUAGE OF THIS ACT, AUTHORIZING THE REMISSION OF THE COMPTROLLER GENERAL OF LIQUIDATED DAMAGES ONLY UPON RECOMMENDATION OF THE AGENCY HEAD, ANY CLAIM FOR RELIEF THEREUNDER MUST FIRST CONTAIN A FAVORABLE RECOMMENDATION BY THE HEAD OF THE DEPARTMENT OR AGENCY CONCERNED. IN THIS INSTANCE, THE SECRETARY OF THE ARMY HAS RECOMMENDED THAT YOUR CLIENT'S REQUEST FOR RELIEF UNDER THE ACT BE DENIED. ACCORDINGLY, THERE IS NO AUTHORITY FOR THE ALLOWANCE OF THE CLAIM.