B-162340, OCT. 6, 1967

B-162340: Oct 6, 1967

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TO PARAGON MACHINE COMPANY: REFERENCE IS MADE TO YOUR LETTER OF AUGUST 19. THE COMPTROLLER GENERAL UPON RECOMMENDATION OF SUCH 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 NOW RECEIVED A LETTER FROM THE SECRETARY OF COMMERCE. ADVISING THAT AFTER REVIEWING THE MATTER THE SECRETARY BELIEVES THAT THE LIQUIDATED DAMAGES WHICH HAVE ACCRUED ARE APPROPRIATE. WE ARE. THE LEGALITY OF THE ASSESSMENT IS FOR CONSIDERATION IN ACCORDANCE WITH THE "DISPUTES" CLAUSE OF THE CONTRACT.

B-162340, OCT. 6, 1967

CONTRACTS - DAMAGES - REMISSION DECISION TO PARAGON MACHINE CO. FOR RELIEF FROM ASSESSMENT OF LIQUIDATED DAMAGES FOR LATE DELIVERY UNDER CONTRACT WITH COMMERCE DEPARTMENT. DECLINATION OF HEAD OF DEPARTMENT TO RECOMMEND REMISSION OF LIQUIDATED DAMAGES WHICH ACCRUED BECAUSE OF LATE DELIVERY PRECLUDES THE COMPTROLLER GENERAL FROM REMITTING SUCH DAMAGES UNDER 41 U.S.C. 256A.

TO PARAGON MACHINE COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 19, 1967, REQUESTING RELIEF FROM THE ASSESSMENT OF LIQUIDATED DAMAGES FOR LATE DELIVERY OF 13,000 UNIVAC REEL CONTAINERS TO THE BUREAU OF CENSUS UNDER A CONTRACT AWARDED PURSUANT TO INVITATION FOR BIDS NO. 6706.

THE AUTHORITY OF OUR OFFICE TO REMIT LEGALLY ASSESSED LIQUIDATED DAMAGES EXISTS PURSUANT TO 41 U.S.C. 256A, AS FOLLOWS: "WHENEVER ANY CONTRACT MADE ON BEHALF OF THE GOVERNMENT BY THE HEAD OF ANY FEDERAL AGENCY, OR BY OFFICERS AUTHORIZED BY HIM SO TO DO, INCLUDES A PROVISION FOR LIQUIDATED DAMAGES FOR DELAY, THE COMPTROLLER GENERAL UPON RECOMMENDATION OF SUCH 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 NOW RECEIVED A LETTER FROM THE SECRETARY OF COMMERCE, DATED SEPTEMBER 22, 1967, ADVISING THAT AFTER REVIEWING THE MATTER THE SECRETARY BELIEVES THAT THE LIQUIDATED DAMAGES WHICH HAVE ACCRUED ARE APPROPRIATE.

SINCE THE SECRETARY OF COMMERCE HAS DECLINED TO RECOMMEND REMISSION OF THE LIQUIDATED DAMAGES, WE ARE, BY STATUTE, WITHOUT AUTHORITY TO REMIT THE DAMAGES.

THE LEGALITY OF THE ASSESSMENT IS FOR CONSIDERATION IN ACCORDANCE WITH THE "DISPUTES" CLAUSE OF THE CONTRACT. SHOULD YOU CHOOSE TO PURSUE THE MATTER FURTHER, IT SHOULD BE TAKEN UP WITH THE CONTRACTING OFFICER.