B-170766, NOV. 9, 1970

B-170766: Nov 9, 1970

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MAY NOT HAVE SUCH REDUCTIONS REGARDED AS ASSESSMENT OF LIQUIDATED DAMAGES FOR INVOCATION OF REMISSION AUTHORITY UNDER 10 U.S.C. 2312. INC.: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 4. 607 THAT WERE "ASSESSED" AGAINST YOUR FIRM FOR DELAY IN THE COMPLETION OF CONTRACTS NOS. YOUR REQUEST IS BASED UPON 10 U.S.C. 2312 WHICH PROVIDES THAT. OF LIQUIDATED DAMAGES WHICH HAVE BEEN ASSESSED FOR DELAY. IF THERE IS A PROVISION IN THE CONTRACT WHICH PROVIDES FOR SUCH ASSESSMENT. 607 REDUCTION WAS OFFERED BY YOUR FIRM AS CONSIDERATION FOR AN EXTENSION IN TIME OF COMPLETION UNDER AN EXTENDED DELIVERY SCHEDULE AS PROVIDED BY PARAGRAPH 8-602.4 OF THE ARMED SERVICES PROCUREMENT REGULATION. THE REDUCTIONS WERE ACCEPTED BY THE CONTRACTING OFFICER AS FOLLOWS: ORIGINAL CONTRACT REDUCTION FOR CONTRACT TOTAL EXTENSION OF DELIVERY N00612-69-C-0444 $ 6.

B-170766, NOV. 9, 1970

CONTRACTS - DAMAGES - LIQUIDATED A CONTRACTOR WHO OFFERED A PRICE REDUCTION AS CONSIDERATION FOR AN EXTENSION IN TIME FOR COMPLETION OF WORK UNDER CONTRACTS THAT DID NOT CONTAIN ANY LIQUIDATED DAMAGE CLAUSES, MAY NOT HAVE SUCH REDUCTIONS REGARDED AS ASSESSMENT OF LIQUIDATED DAMAGES FOR INVOCATION OF REMISSION AUTHORITY UNDER 10 U.S.C. 2312.

TO HALIFAX ENGINEERING, INC.:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 4, 1970, IN WHICH YOU REQUEST A REFUND OF "PENALTIES" IN THE AMOUNT OF $4,607 THAT WERE "ASSESSED" AGAINST YOUR FIRM FOR DELAY IN THE COMPLETION OF CONTRACTS NOS. N00612-69-C-0444 DATED MAY 16, 1969, -0505 DATED JUNE 6, 1969, AND -0525 DATED JUNE 16, 1969.

YOUR REQUEST IS BASED UPON 10 U.S.C. 2312 WHICH PROVIDES THAT, UPON THE RECOMMENDATION OF THE HEAD OF AN AGENCY, THE COMPTROLLER GENERAL MAY REMIT ALL OR PART, AS HE CONSIDERS JUST AND EQUITABLE, OF LIQUIDATED DAMAGES WHICH HAVE BEEN ASSESSED FOR DELAY, IF THERE IS A PROVISION IN THE CONTRACT WHICH PROVIDES FOR SUCH ASSESSMENT. NONE OF THE INSTANT CONTRACTS CONTAIN SUCH PROVISIONS FOR THE ASSESSMENT OF LIQUIDATED DAMAGES. RATHER, THE NAVAL SUPPLY SYSTEMS COMMAND HAS INFORMED US THAT THE $4,607 REDUCTION WAS OFFERED BY YOUR FIRM AS CONSIDERATION FOR AN EXTENSION IN TIME OF COMPLETION UNDER AN EXTENDED DELIVERY SCHEDULE AS PROVIDED BY PARAGRAPH 8-602.4 OF THE ARMED SERVICES PROCUREMENT REGULATION. THE REDUCTIONS WERE ACCEPTED BY THE CONTRACTING OFFICER AS FOLLOWS:

ORIGINAL CONTRACT REDUCTION FOR

CONTRACT TOTAL EXTENSION OF DELIVERY

N00612-69-C-0444 $ 6,577.00 $ 520.00

N00612-69-C-0505 19,987.49 3,912.00

N00612-69-C-0525 9,777.00 175.00

SINCE THE REDUCTION WAS NEITHER A PENALTY NOR AN ASSESSMENT OF LIQUIDATED DAMAGES, BUT CONSIDERATION FOR A SUPPLEMENTAL AGREEMENT SIGNED BY THE PRESIDENT OF YOUR FIRM, THE PROVISIONS OF 10 U.S.C. 2312, WHICH ARE LIMITED TO CONTRACTS CONTAINING LIQUIDATED DAMAGES CLAUSES, ARE NOT APPLICABLE.

ACCORDINGLY, WE CANNOT GIVE FAVORABLE CONSIDERATION TO YOUR REQUEST.