B-143489, JUL. 20, 1960

B-143489: Jul 20, 1960

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WHICH WAS AWARDED BY THE PUBLIC HEALTH SERVICE MAY 15. IT WAS STIPULATED THAT THE MAXIMUM ACTUAL COST TO THE GOVERNMENT SHOULD NOT EXCEED $7. 132.09 WAS FURNISHED AFTER THE EXPIRATION DATE. THE CONTRACTOR HAS EXPLAINED ITS CONTINUED PERFORMANCE BEYOND THE LIMITS FIXED IN THE CONTRACT AS AN OVERSIGHT DUE TO THE FACT THAT MOST OF ITS DEVELOPMENT WORK IS DONE UNDER OTHER FEDERAL CONTRACTS NOT HAVING FIXED COMPLETION DATES. ALTHOUGH THE CONTRACTOR WAS NOT FREE FROM FAULT. THAT THE WORK PERFORMED WAS NECESSARY. 132.09 WERE REASONABLE AND SHOULD BE PAID. THEY WOULD HAVE TAKEN STEPS ON A TIMELY BASIS TO DO SO. IT IS CLEAR THAT FAILURE TO COMPLETE ALL FORMALITIES WAS DUE SOLELY TO OVERSIGHT. YOU ARE AUTHORIZED TO CERTIFY THE RECOMMENDED AMOUNT OF $5.

B-143489, JUL. 20, 1960

TO MISS LOUISE C. CLARK, AUTHORIZED CERTIFYING OFFICER, DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE:

IN LETTER OF JULY 7, 1960, YOU REQUESTED A DECISION AS TO THE PROPRIETY OF CERTIFYING FOR PAYMENT A CLAIM OF THE NOME CLARKE COMPANY, FOR $5,519.33, COVERING DEVELOPMENTAL WORK PERFORMED UNDER CONTRACT SA-43-PH- 2367 AFTER ITS EXPIRATION DATE.

THE CONTRACT, WHICH WAS AWARDED BY THE PUBLIC HEALTH SERVICE MAY 15, 1958, PROVIDED FOR THE DEVELOPMENT AND CONSTRUCTION OF A FILM TRANSPORT MECHANISM FOR OPERATION ON A GOVERNMENT-OWNED 16 MM VARIABLE SPEED MOTION PICTURE PROJECTOR. IT WAS STIPULATED THAT THE MAXIMUM ACTUAL COST TO THE GOVERNMENT SHOULD NOT EXCEED $7,500,"UNLESS OTHERWISE PROVIDED FOR BY SUPPLEMENTAL AGREEMENT," PLUS A FIXED-FEE OF $515, AND THAT WORK "SHALL NOT EXTEND BEYOND THE 14TH DAY OF NOVEMBER, 1958, UNLESS OTHERWISE PROVIDED FOR BY AMENDMENT TO THE CONTRACT.'

YOU REPORT THAT, NONETHELESS, AND IN DISREGARD OF CLAUSE 24 OF THE GENERAL PROVISIONS OF THE CONTRACT (OBLIGATING THE CONTRACTOR TO GIVE NOTICE OF ADDITIONAL COSTS, ETC., AND TO OBTAIN WRITTEN APPROVAL THEREOF), DEVELOPMENT WORK HAVING AN ADDITIONAL VALUE OF $5,132.09 WAS FURNISHED AFTER THE EXPIRATION DATE. THE CONTRACTOR HAS EXPLAINED ITS CONTINUED PERFORMANCE BEYOND THE LIMITS FIXED IN THE CONTRACT AS AN OVERSIGHT DUE TO THE FACT THAT MOST OF ITS DEVELOPMENT WORK IS DONE UNDER OTHER FEDERAL CONTRACTS NOT HAVING FIXED COMPLETION DATES. THE CONTRACTING OFFICER DETERMINED THAT THE PROJECT OFFICER "APPARENTLY MISLED" THE CONTRACTOR BY WORKING WITH IT, ALTHOUGH THE CONTRACTOR WAS NOT FREE FROM FAULT, THAT THE WORK PERFORMED WAS NECESSARY, AND THAT THE ADDITIONAL COSTS OF $5,132.09 WERE REASONABLE AND SHOULD BE PAID. IN THIS CONNECTION, YOU STATE THAT BOTH THE PROJECT OFFICER AND THE CONTRACTING OFFICER AGREE THAT HAD THEY BEEN AWARE OF THE TECHNICALITIES REQUIRING FORMAL EXTENSION OF THE CONTRACT, THEY WOULD HAVE TAKEN STEPS ON A TIMELY BASIS TO DO SO.

IN VIEW OF THE CIRCUMSTANCES, IT IS CLEAR THAT FAILURE TO COMPLETE ALL FORMALITIES WAS DUE SOLELY TO OVERSIGHT. SINCE THE ADDITIONAL WORK HAS BEEN COMPLETED IN ACCORDANCE WITH AN OTHERWISE PROPER AND MUTUALLY INTENDED EXTENSION OF THE ORIGINAL AGREEMENT, YOU ARE AUTHORIZED TO CERTIFY THE RECOMMENDED AMOUNT OF $5,132.09 FOR PAYMENT.

THE CONTRACTOR'S ORIGINAL INVOICE (NO. 61783, DATED JULY 8, 1959), IS RETURNED.