Claim for Remission of Liquidated Damages Assessed Under Government Contracts

B-185005: Feb 13, 1976

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A contractor requested remission of liquidated damages assessed against it by the Government under four contracts. The request for equitable remission was denied since the agency recommended against remission and the Comptroller General may not remit liquidated damages in the absence of a favorable recommendation from the agency. Where the liquidated damage provision in the contract was otherwise valid, the fact that the Government did not suffer actual damages as a result of the default did not preclude the assessment of liquidated damages against the defaulting purchaser. The record did not support the contractor's claim that the Government erred in placing the claimant on the cleared bidders list and, in any event, the validity of the contract would not be affected by such an error since the clearance requirement was solely for the protection of the Government.