B-164790, JUL. 25, 1968

B-164790: Jul 25, 1968

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COLLINS: REFERENCE IS MADE TO YOUR LETTER OF JUNE 24. THE FINAL PAYMENT ON THE CONTRACT WAS MADE ON JULY 21. THE GENERAL PRESUMPTION IS THAT THE TRANSACTION IS A CLOSED ONE. IF THERE ARE CLAIMS ON THE PART OF THE CONTRACTOR WHICH AFFECT THE AMOUNT DUE AND PAYABLE TO HIM UNDER THE TERMS OF THE CONTRACT. THEY SHOULD BE ASSERTED AT OR BEFORE THE TIME A SETTLEMENT IS MADE. THE GOVERNMENT IS ENTITLED TO KNOW. IT IS ITS RIGHT TO KNOW WHETHER THE SUPPOSED FINAL PAYMENT IS IN FACT FINAL AND CONCLUSIVE. THE SETTLEMENT DISALLOWING YOUR CLAIM IS SUSTAINED.

B-164790, JUL. 25, 1968

TO MR. WILLIAM H. COLLINS:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 24, 1968, REQUESTING RECONSIDERATION OF OUR SETTLEMENT OF MAY 28, 1968, DISALLOWING YOUR COMPANY'S CLAIM FOR $3,740.84, REPRESENTING ADDITIONAL COSTS INCURRED UNDER FOREST SERVICE CONTRACT 38-1157, AS AMENDED.

ACCORDING TO THE RECORD, THE FINAL PAYMENT ON THE CONTRACT WAS MADE ON JULY 21, 1967, WITHOUT OBJECTION OR RESERVATION ON YOUR PART, AND YOUR COMPANY DID NOT FILE A CLAIM FOR ADDITIONAL COMPENSATION UNTIL SEPTEMBER 6, 1967.

WHEN A CONTRACT HAS BEEN PERFORMED AND A STIPULATED CONSIDERATION HAS BEEN PAID, THE GENERAL PRESUMPTION IS THAT THE TRANSACTION IS A CLOSED ONE. IF THERE ARE CLAIMS ON THE PART OF THE CONTRACTOR WHICH AFFECT THE AMOUNT DUE AND PAYABLE TO HIM UNDER THE TERMS OF THE CONTRACT, THEY SHOULD BE ASSERTED AT OR BEFORE THE TIME A SETTLEMENT IS MADE. THE GOVERNMENT IS ENTITLED TO KNOW, WHEN IT MAKES WHAT IT BELIEVES TO BE A FINAL PAYMENT ON ITS CONTRACT, WHAT CLAIMS A CONTRACTOR INTENDS TO ASSERT AGAINST IT ON ACCOUNT OF THE CONTRACT. IT IS ITS RIGHT TO KNOW WHETHER THE SUPPOSED FINAL PAYMENT IS IN FACT FINAL AND CONCLUSIVE. SEE POOLE ENGINEERING AND MACHINE COMPANY V UNITED STATES, 57 CT. CL. 232 (1922); DUBOIS CONST. CORP. V UNITED STATES, 98 F.SUPP. 590 (1951); MCQUAGGE V UNITED STATES, 197 F.SUPP. 460 (1961).

IN VIEW THEREOF, YOUR CLAIM MAY NOT BE ALLOWED. ACCORDINGLY, THE SETTLEMENT DISALLOWING YOUR CLAIM IS SUSTAINED.