B-163819, OCT. 11, 1968

B-163819: Oct 11, 1968

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SECRETARY: FURTHER REFERENCE IS MADE TO THE REQUEST BY TEXAS INSTRUMENTS. WHICH WAS THE SUBJECT OF A REPORT DATED SEPTEMBER 24. THE SUBJECT CONTRACT WAS AWARDED ON OCTOBER 5. TI STATES THAT DELIVERY WAS MADE TO NATC ON SEPTEMBER 28. THE FIELD ENGINEERING SERVICES WERE BEGUN AT THE DIRECTION OF NASC PERSONNEL. TI STATES THAT THE F4B TESTING DID NOT START UNTIL DECEMBER 1966 AND THE A4E TESTS WERE DELAYED UNTIL APRIL 1967 AND WERE STILL BEING CONDUCTED AS OF MARCH 8. TI SAYS IT WAS REQUIRED TO PROVIDE AN ENGINEER FROM THE PROJECT STAFF TO TRAVEL BACK AND FORTH BETWEEN THE TEST SITES TO PROVIDE THE NECESSARY SUPPORT SERVICES BEYOND THE THREE-MONTH PERIOD PROVIDED FOR IN THE CONTRACT. TI CLAIMS THAT THE VALUE OF THESE ADDITIONAL SERVICES WAS $17.

B-163819, OCT. 11, 1968

TO MR. SECRETARY:

FURTHER REFERENCE IS MADE TO THE REQUEST BY TEXAS INSTRUMENTS, INCORPORATED (TI), FOR AN ADJUSTMENT IN THE PRICE OF CONTRACT NO. NOW66 0091-DI, WHICH WAS THE SUBJECT OF A REPORT DATED SEPTEMBER 24, 1968, FROM COUNSEL, NAVAL AIR SYSTEMS COMMAND.

THE SUBJECT CONTRACT WAS AWARDED ON OCTOBER 5, 1965, AND CALLED FOR TI TO DESIGN, DEVELOPE, FABRICATE AND TEST ALARM MONITORING INDICATORS FOR THE AN/AJB-3A SYSTEM AND ASSOCIATED BACKUP SYSTEM. ITEM 4 OF THE CONTRACT REQUIRED TI TO PROVIDE THREE MAN-MONTHS OF FIELD ENGINEERING SERVICES BEGINNING AFTER DELIVERY OF THE ALARM MONITORING INDICATORS.

TI STATES THAT DELIVERY WAS MADE TO NATC ON SEPTEMBER 28, 1966, AND THE FIELD ENGINEERING SERVICES WERE BEGUN AT THE DIRECTION OF NASC PERSONNEL. HOWEVER, TI STATES THAT THE F4B TESTING DID NOT START UNTIL DECEMBER 1966 AND THE A4E TESTS WERE DELAYED UNTIL APRIL 1967 AND WERE STILL BEING CONDUCTED AS OF MARCH 8, 1968, THE DATE OF ITS LETTER TO OUR OFFICE. BECAUSE OF THIS DELAY AND BECAUSE OF THE INTERMITTENT NATURE OF THE TESTING, TI SAYS IT WAS REQUIRED TO PROVIDE AN ENGINEER FROM THE PROJECT STAFF TO TRAVEL BACK AND FORTH BETWEEN THE TEST SITES TO PROVIDE THE NECESSARY SUPPORT SERVICES BEYOND THE THREE-MONTH PERIOD PROVIDED FOR IN THE CONTRACT. TI ALSO CLAIMS THAT IT PROVIDED THE NAVY TEST FACILITIES, ADDITIONAL MINOR TEST EQUIPMENT, AND MODIFICATIONS TO THE ALARM MONITORING INDICATORS. TI CLAIMS THAT THE VALUE OF THESE ADDITIONAL SERVICES WAS $17,701.

IN HIS REPORT THE COUNSEL STATES THAT, ALTHOUGH THE ADDITIONAL SERVICES CLAIMED BY TI WERE NOT SPECIFICALLY AUTHORIZED BY A NAVAIR CONTRACTING OFFICER, THEY WERE IN FACT PERFORMED AND WERE OF CONSIDERABLE VALUE TO NAVAIR IN DEVELOPMENT OF THE AN/AJB-3A SYSTEM. THEREFORE, HE RECOMMENDS PAYMENT OF THE COSTS INCURRED IN THE PERFORMANCE OF SUCH SERVICES PRIOR TO DECEMBER 1967, AT WHICH TIME TI WAS NOTIFIED THAT SINCE THERE WAS NO CONTRACT FOR SUCH SERVICES THERE WOULD BE NO REIMBURSEMENT.

ALTHOUGH THE ADDITIONAL SERVICES IN QUESTION WERE NOT PROPERLY AUTHORIZED BY A CONTRACT MODIFICATION, THE RECORD INDICATES THAT THEY WERE PERFORMED WITH THE KNOWLEDGE AND ACQUIESCENCE OF GOVERNMENT PERSONNEL AND RESULTED IN A BENEFIT TO THE GOVERNMENT. IN SUCH CIRCUMSTANCES, THERE IS RECOGNIZED AN OBLIGATION TO PAY THE FAIR VALUE OF THE SERVICES ACTUALLY FURNISHED PRIOR TO DECEMBER 1967 ON A QUANTUM VALEBAT OR QUANTUM MERUIT BASIS. 46 COMP. GEN. 348; 40 ID. 447; 38 ID. 38. THEREFORE, SUBJECT TO THE DETERMINATION OF THE REASONABLENESS OF THE CHARGES CLAIMED, PAYMENT IS AUTHORIZED.