B-147706, JAN. 24, 1962

B-147706: Jan 24, 1962

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

HORNER: REFERENCE IS MADE TO OUR LETTER OF DECEMBER 18. IT APPEARS THAT THE CONTRACTOR IS ENTITLED TO PAYMENT OF THE SUM OF $946 ON ACCOUNT OF WORK PERFORMED AND ACCEPTED BY THE GOVERNMENT AFTER THE EXPIRATION DATE OF THE SECOND CONTRACT. WE HAVE ALSO DETERMINED THAT THE CONTRACTOR'S CLAIM FOR $3. THERE IS AN APPARENT DISCREPANCY IN THE CONTRACTOR'S CLAIM FOR $3. WE ASSUME THAT IT WAS INTENDED TO COVER OTHER DISPUTED ITEMS OF $5.52 AND $68.25. THE SUM OF $5.52 WAS DISALLOWED BECAUSE OF A FAILURE ON THE PART OF THE CONTRACTOR TO ALLOW CREDIT FOR A DISCOUNT EARNED IN THE PURCHASE OF MATERIAL WHEN CLAIMING REIMBURSEMENT FOR THE EXPENSE INVOLVED. THE DISALLOWANCE OF $68.25 WAS BASED UPON APPARENT DISCREPANCIES IN THE CONTRACTOR'S TIME RECORDS.

B-147706, JAN. 24, 1962

TO MR. HENRY C. HORNER:

REFERENCE IS MADE TO OUR LETTER OF DECEMBER 18, 1961, AND TO THE CONFERENCE HELD ON JANUARY 4, 1962, CONCERNING A CLAIM OF AUTOMATION MANAGEMENT, INC., WESTBORO, MASSACHUSETTS, FOR $5,162.06 UNDER THAT FIRM'S CONTRACTS DATED MAY 24, 1957, AND JUNE 6, 1958, WITH THE POST OFFICE DEPARTMENT.

AS INDICATED IN OUR LETTER OF DECEMBER 18, 1961, THERE EXISTS NO LEGAL BASIS FOR THE ALLOWANCE OF ANY PART OF THE CONTRACTOR'S CLAIM FOR INTEREST IN THE AMOUNT OF $959.55. HOWEVER, IT APPEARS THAT THE CONTRACTOR IS ENTITLED TO PAYMENT OF THE SUM OF $946 ON ACCOUNT OF WORK PERFORMED AND ACCEPTED BY THE GOVERNMENT AFTER THE EXPIRATION DATE OF THE SECOND CONTRACT. WE HAVE ALSO DETERMINED THAT THE CONTRACTOR'S CLAIM FOR $3,256.51, BASED UPON ALLEGEDLY ERRONEOUS DISALLOWANCES OF PORTIONS OF BILLINGS SUBMITTED DURING THE CONTRACT PERIODS, MAY PROPERLY BE ALLOWED IN THE NET AMOUNT OF $3,198.53, WHICH INCLUDES THE ADMINISTRATIVELY PROPOSED SETTLEMENT AMOUNT OF $409.88 AND THE DISPUTED ITEM OF $2,788.65 WHICH RELATES TO THE CONTRACTOR'S BILLINGS FOR TRAVEL TIME SPENT IN CONNECTION WITH THE PERFORMANCE OF THE TWO CONTRACTS.

THERE IS AN APPARENT DISCREPANCY IN THE CONTRACTOR'S CLAIM FOR $3,256.51, AND WE ASSUME THAT IT WAS INTENDED TO COVER OTHER DISPUTED ITEMS OF $5.52 AND $68.25, WHICH WOULD INCREASE THE TOTAL OF SUCH CLAIM TO $3,272.30. THE SUM OF $5.52 WAS DISALLOWED BECAUSE OF A FAILURE ON THE PART OF THE CONTRACTOR TO ALLOW CREDIT FOR A DISCOUNT EARNED IN THE PURCHASE OF MATERIAL WHEN CLAIMING REIMBURSEMENT FOR THE EXPENSE INVOLVED. THE DISALLOWANCE OF $68.25 WAS BASED UPON APPARENT DISCREPANCIES IN THE CONTRACTOR'S TIME RECORDS. WE BELIEVE THAT THE FIRST DISALLOWANCE WAS PROPER AND THAT WE WOULD NOT BE WARRANTED ON THE PRESENT RECORD IN MAKING ANY ADJUSTMENT WITH RESPECT TO THE DISALLOWANCE OF $68.25.

ACCORDINGLY, THE AMOUNT OF $4,144.53, REPRESENTING THE TOTAL OF THE ABOVE SUMS OF $946 AND $3,198.53, WILL BE CERTIFIED FOR PAYMENT TO THE CONTRACTOR AS IN FULL AND FINAL SETTLEMENT OF ALL CLAIMS ARISING OUT OF THE TWO CONTRACTS.