B-154228, JUL. 10, 1964

B-154228: Jul 10, 1964

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TO THE POSTMASTER GENERAL: REFERENCE IS MADE TO LETTER DATED JANUARY 28. IS LIABLE FOR EXCESS COSTS OF $196 INCIDENT TO PROCUREMENT OF THE SERVICES FROM ANOTHER SOURCE AFTER FEBRUARY 28. ALTHOUGH THE CONTRACTOR IS ADAMANT IN HIS REFUSAL TO PAY THE FULL AMOUNT OF THE EXCESS COSTS WITHOUT A COURT JUDGMENT. WHO IS HOLDING THE CHECK. THE CORRESPONDENCE FORWARDED WITH THE FINANCE OFFICER'S LETTER IS RETURNED.

B-154228, JUL. 10, 1964

TO THE POSTMASTER GENERAL:

REFERENCE IS MADE TO LETTER DATED JANUARY 28, 1964, FROM MR. J. H. MARKS, FINANCE OFFICER, FORWARDING FOR OUR CONSIDERATION COPIES OF CORRESPONDENCE RELATIVE TO THE COMPROMISE OFFER OF MR. RONALD F. MILLER INCIDENT TO HIS DEFAULT ON ANCHORAGE POST OFFICE CONTRACT NO. 63-3.

THE CONTRACT, DATED JUNE 10, 1962, COVERED THE REMOVAL OF WASTE ON A 6- DAY A WEEK BASIS AT THE AIRPORT ANNEX OF THE ANCHORAGE POST OFFICE FOR THE FISCAL YEAR ENDING JUNE 30, 1963. THE CONTRACTOR, WHO DEFAULTED AND CEASED TO PERFORM ON FEBRUARY 28, 1963, IS LIABLE FOR EXCESS COSTS OF $196 INCIDENT TO PROCUREMENT OF THE SERVICES FROM ANOTHER SOURCE AFTER FEBRUARY 28, 1963. ALTHOUGH THE CONTRACTOR IS ADAMANT IN HIS REFUSAL TO PAY THE FULL AMOUNT OF THE EXCESS COSTS WITHOUT A COURT JUDGMENT, HE HAS TENDERED A CERTIFIED CHECK FOR $100 IN COMPROMISE OF THE GOVERNMENT'S CLAIM. THE FINANCE OFFICER, WHO IS HOLDING THE CHECK, HAS RECOMMENDED THAT THE OFFER BE ACCEPTED.

SINCE THE ADDITIONAL AMOUNT OF $96 WHICH MIGHT BE RECOVERED THROUGH COURT ACTION WOULD NOT WARRANT THE EXPENSE OF LITIGATION, WE CONCUR WITH THE RECOMMENDATION OF THE FINANCE OFFICER. ACCORDINGLY, THE CHECK FOR $100 MAY BE ACCEPTED IN COMPROMISE OF THE INDEBTEDNESS PURSUANT TO 39 U.S.C. 2401 (B).

THE CORRESPONDENCE FORWARDED WITH THE FINANCE OFFICER'S LETTER IS RETURNED.