B-176478, AUG 31, 1972

B-176478: Aug 31, 1972

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

PAYMENT WAS TO BE MADE FOR HOURS OF ACTUAL OPERATION IN PERFORMING WORK. THE AMOUNT IN QUESTION WAS PROPERLY DEDUCTED. GAO IS UNABLE TO CONCLUDE THAT THERE IS A LEGAL BASIS FOR ANY FURTHER PAYMENT. WHICH WAS AWARDED UNDER INVITATION FOR BIDS NO. BIDDERS WERE REQUIRED TO SUPPLY THE MARSH BUGGY WITH OPERATOR AND PONTOONS FROM APPROXIMATELY NOVEMBER 29. THE FOLLOWING STATEMENT WAS ALSO INCLUDED IN THE BID SCHEDULE: "PRICES QUOTED SHALL INCLUDE THE COST OF ALL MATERIALS. PAYMENT WAS TO BE MADE AS FOLLOWS: "PAYMENT WILL BE MADE ONLY FOR HOURS OF ACTUAL OPERATION. THE CONTRACTOR IS NOW CLAIMING ADDITIONAL PAYMENT OF $238 REPRESENTING RENTAL FEES OF $98 AND $140. THE DEDUCTIONS WERE MADE BECAUSE THE CHARGES WERE FOR THE 1 HOUR LUNCH PERIODS WHEN NO WORK WAS ACTUALLY PERFORMED.

B-176478, AUG 31, 1972

CONTRACT - INTERPRETATION - "HOURS OF OPERATION" DENIAL OF CLAIM OF ANDREW A. CHERAMIE MARSH BUGGIES, INC., FOR $238 AS FURTHER PAYMENT UNDER A CONTRACT AWARDED BY THE SOIL CONSERVATION SERVICE, ALEXANDRIA, LA., FOR RENTAL OF A TRACK-TYPE MARSH BUGGY, WITH OPERATOR, AND A SET OF PONTOONS USED FOR MOVING A DRILLING RIG. UNDER THE TERMS OF THE IFB AS INCORPORATED INTO THE CONTRACT, PAYMENT WAS TO BE MADE FOR HOURS OF ACTUAL OPERATION IN PERFORMING WORK. IN THE CIRCUMSTANCES, THE AMOUNT IN QUESTION WAS PROPERLY DEDUCTED, AND GAO IS UNABLE TO CONCLUDE THAT THERE IS A LEGAL BASIS FOR ANY FURTHER PAYMENT.

TO MR. O. T. SEELY:

WE REFER TO YOUR LETTER OF MAY 15, 1972, REQUESTING OUR DECISION CONCERNING THE CLAIM OF ANDREW A. CHERAMIE MARSH BUGGIES, INC., FOR $238 AS FURTHER PAYMENT UNDER AN UNNUMBERED CONTRACT DATED NOVEMBER 23, 1971, WHICH WAS AWARDED UNDER INVITATION FOR BIDS NO. SCS-1-LA-72, ISSUED BY THE SOIL CONSERVATION SERVICE (SCS), ALEXANDRIA, LOUISIANA, FOR RENTAL OF A TRACK-TYPE MARSH BUGGY, WITH OPERATOR, AND A SET OF PONTOONS USED FOR MOVING A DRILLING RIG.

UNDER ITEMS 1 AND 2 OF THE INVITATION FOR BIDS (IFB), BIDDERS WERE REQUIRED TO SUPPLY THE MARSH BUGGY WITH OPERATOR AND PONTOONS FROM APPROXIMATELY NOVEMBER 29, 1971, THROUGH MARCH 1, 1972, FOR WORK PERFORMED 8 HOURS PER DAY, 40 HOURS PER WEEK. THE FOLLOWING STATEMENT WAS ALSO INCLUDED IN THE BID SCHEDULE:

"PRICES QUOTED SHALL INCLUDE THE COST OF ALL MATERIALS, ACCESSORIES, LABOR, MAINTENANCE, OPERATING SUPPLIES, SALARIES OF EQUIPMENT OPERATORS, AND ANY OTHER EXPENSE INCIDENT TO THE OPERATION OF THE EQUIPMENT. ***"

FURTHER, UNDER PARAGRAPH 5(C) OF THE IFB, PAYMENT WAS TO BE MADE AS FOLLOWS:

"PAYMENT WILL BE MADE ONLY FOR HOURS OF ACTUAL OPERATION. ACTUAL OPERATION MEANS THAT TIME SPENT IN PERFORMING WORK AS WELL AS TIME NECESSARY FOR MOVING EQUIPMENT BETWEEN WORK SITES WHEN REQUESTED BY THE CONTRACTING OFFICER."

THE CONTRACTOR BID UNIT PRICES OF $13 PER HOUR FOR USE OF THE MARSH BUGGY WITH OPERATOR AND $1 PER HOUR FOR USE OF THE PONTOONS. THE CONTRACTOR IS NOW CLAIMING ADDITIONAL PAYMENT OF $238 REPRESENTING RENTAL FEES OF $98 AND $140, AMOUNTS DEDUCTED BY SCS FROM THE ORIGINAL INVOICES. THE DEDUCTIONS WERE MADE BECAUSE THE CHARGES WERE FOR THE 1 HOUR LUNCH PERIODS WHEN NO WORK WAS ACTUALLY PERFORMED. THE CONTRACTOR CONTENDS THAT WORKING TIME IS CONSIDERED TO EXTEND FROM STARTING TIME UNTIL QUITTING TIME AND THAT THE MARSH BUGGY OPERATOR WAS PAID FOR THE NOON HOUR WHETHER OR NOT ANY WORK WAS PERFORMED.

HOWEVER, UNDER THE TERMS OF THE IFB AS INCORPORATED INTO THE CONTRACT, PAYMENT WAS TO BE MADE FOR HOURS OF ACTUAL OPERATION IN PERFORMING WORK.

IN THE CIRCUMSTANCES, THE ADDITIONAL AMOUNTS CLAIMED BY THE CONTRACTOR WERE PROPERLY DEDUCTED AND WE ARE UNABLE TO CONCLUDE THAT THERE IS A LEGAL BASIS FOR ANY FURTHER PAYMENT.