B-149166, AUG. 13, 1962

B-149166: Aug 13, 1962

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GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO LETTER OF AUGUST 2. SINCE IT IS REPORTED THAT THE PROTEST WITH RESPECT TO A SUBSTANTIAL PORTION OF THAT AMOUNT IS NOW PENDING BEFORE YOUR BOARD OF CONTRACT APPEALS. A FURTHER REQUEST IS FOR RELEASE OF THE FUNDS WITHHELD BY YOUR ADMINISTRATION TO PREVENT IRREPARABLE HARM TO THE CONTRACTOR. WHICH IS A SMALL BUSINESS CONCERN WITH LIMITED CAPITAL. SINCE THE AMOUNT OF THE OBLIGATION IS IN DISPUTE. OUR OFFICE WOULD NOT OBJECT TO YOUR RELEASING OF THE FUNDS AFTER THE CONTEMPLATED ARRANGEMENTS HAVE BEEN ACCEPTED BY ALL PARTIES INTEREST.

B-149166, AUG. 13, 1962

TO ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO LETTER OF AUGUST 2, 1962, FROM THE COMMISSIONER, FEDERAL SUPPLY SERVICE, RELATIVE TO THE REQUEST FOR RELIEF SUBMITTED TO US BY RVR INDUSTRIES, INCORPORATED, THROUGH ITS ATTORNEY, ALBERT H. GREENE.

BY LETTERS DATED JUNE 7 AND JULY 5, 1962, COUNSEL FOR THE CONTRACTOR PROTESTED THE ACTION TAKEN BY THE FEDERAL SUPPLY SERVICE IN WITHHOLDING FUNDS APPROXIMATING $30,000 (NOW REPORTED TO BE APPROXIMATELY $50,000), OTHERWISE DUE THE CONTRACTOR FOR EQUIPMENT FURNISHED THE GOVERNMENT UNDER CONTRACT NO. GS-00S-34365. SINCE IT IS REPORTED THAT THE PROTEST WITH RESPECT TO A SUBSTANTIAL PORTION OF THAT AMOUNT IS NOW PENDING BEFORE YOUR BOARD OF CONTRACT APPEALS, WHICH INVOLVES THE RIGHT OF THE UNITED STATES TO RETAIN THOSE FUNDS AS LIQUIDATED DAMAGES FOR ALLEGED DELAYED DELIVERIES UNDER THE CITED CONTRACT, WE BELIEVE THAT SUCH PROTEST SHOULD NOT BE CONSIDERED BY US AT THIS TIME.

A FURTHER REQUEST IS FOR RELEASE OF THE FUNDS WITHHELD BY YOUR ADMINISTRATION TO PREVENT IRREPARABLE HARM TO THE CONTRACTOR, WHICH IS A SMALL BUSINESS CONCERN WITH LIMITED CAPITAL, LOCATED IN A SUBSTANTIAL AND PERSISTENT LABOR SURPLUS AREA. IN THAT CONNECTION THE COMMISSIONER STATES THAT A NEW CONTRACT FOR AN ESTIMATED VOLUME OF $1,700,000 IN MERCHANDISE HAS BEEN AWARDED TO THE DEBTOR COMPANY AND, IN VIEW OF ITS PAST PERFORMANCE RECORD AND POTENTIAL CAPABILITIES, THE AGENCY WOULD NOT BE ADVERSE TO RELEASING THE SUBJECT FUNDS, AND DEDUCTING FROM CURRENT VOUCHERS A PERCENTAGE ADEQUATE TO RECOUP THE ULTIMATELY DETERMINED INDEBTEDNESS DURING THE LIFE OF THE PRESENT CONTRACT.

IN VIEW OF THE FOREGOING, AND SINCE THE AMOUNT OF THE OBLIGATION IS IN DISPUTE, OUR OFFICE WOULD NOT OBJECT TO YOUR RELEASING OF THE FUNDS AFTER THE CONTEMPLATED ARRANGEMENTS HAVE BEEN ACCEPTED BY ALL PARTIES INTEREST.