B-92044, MARCH 23, 1950, 29 COMP. GEN. 387

B-92044: Mar 23, 1950

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IS LIMITED TO CONTRACTS ENTERED INTO UNDER PROVISIONS OF TITLE III OF THE ACT. SO THAT THE COMPTROLLER GENERAL IS NOT AUTHORIZED TO REMIT LIQUIDATED DAMAGES INCURRED UNDER CONTRACTS ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF THE ACT. IT APPEARS THAT THE LIQUIDATED DAMAGES INVOLVED WERE COMPUTED AND DEDUCTED ON THE BASIS CONTEMPLATED AND PROVIDED FOR UNDER THE CONTRACT. THE RECOMMENDATION FOR REMISSION OF THE LIQUIDATED DAMAGES IS MADE PURSUANT TO SECTION 306. THE COMPTROLLER GENERAL ON THE RECOMMENDATION OF THE AGENCY HEAD IS AUTHORIZED AND EMPOWERED TO REMIT THE WHOLE OR ANY PART OF SUCH DAMAGES AS IN HIS DISCRETION MAY BE JUST AND EQUITABLE. THE AUTHORITY TO REMIT LIQUIDATED DAMAGES CONFERRED ON THE COMPTROLLER GENERAL BY SECTION 306 IS LIMITED TO CONTRACTS ENTERED INTO PURSUANT TO TITLE III OF THE ACT.

B-92044, MARCH 23, 1950, 29 COMP. GEN. 387

CONTRACTS - LIQUIDATED DAMAGES - REMISSION OF BY THE COMPTROLLER GENERAL THE AUTHORITY CONFERRED UPON THE COMPTROLLER GENERAL BY SECTION 306 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949 TO REMIT LIQUIDATED DAMAGES UNDER CONTRACTS FOR SUPPLIES OR SERVICES MADE BY THE GENERAL SERVICES ADMINISTRATION, OR BY CERTAIN OTHER EXECUTIVE AGENCIES, IS LIMITED TO CONTRACTS ENTERED INTO UNDER PROVISIONS OF TITLE III OF THE ACT, SO THAT THE COMPTROLLER GENERAL IS NOT AUTHORIZED TO REMIT LIQUIDATED DAMAGES INCURRED UNDER CONTRACTS ENTERED INTO PRIOR TO THE EFFECTIVE DATE OF THE ACT.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF THE INTERIOR, MARCH 23, 1950:

THERE HAS BEEN CONSIDERED A LETTER DATED JANUARY 12, 1950, WITH ENCLOSURES, FROM THE SOLICITOR OF YOUR DEPARTMENT RECOMMENDING THE REMISSION OF LIQUIDATED DAMAGES IN THE AMOUNT OF $13,555 UNDER CONTRACT NO. 12R-16498, DATED AUGUST 2, 1946, WITH DAWSON-CORBETT AND SHELP, A PARTNERSHIP.

IT APPEARS THAT THE LIQUIDATED DAMAGES INVOLVED WERE COMPUTED AND DEDUCTED ON THE BASIS CONTEMPLATED AND PROVIDED FOR UNDER THE CONTRACT.

THE RECOMMENDATION FOR REMISSION OF THE LIQUIDATED DAMAGES IS MADE PURSUANT TO SECTION 306, TITLE III, OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, 63 STAT. 396, WHICH PROVIDES AS FOLLOWS:

WHENEVER ANY CONTRACT MADE ON BEHALF OF THE GOVERNMENT BY THE AGENCY HEAD OR BY OFFICERS AUTHORIZED BY HIM SO TO DO INCLUDES A PROVISION FOR LIQUIDATED DAMAGES FOR DELAY, THE COMPTROLLER GENERAL ON THE RECOMMENDATION OF THE AGENCY HEAD IS AUTHORIZED AND EMPOWERED TO REMIT THE WHOLE OR ANY PART OF SUCH DAMAGES AS IN HIS DISCRETION MAY BE JUST AND EQUITABLE.

SECTION 302 (A) OF THE ACT, 63 STAT. 393, PROVIDES THAT THE PROVISIONS OF TITLE III, WHICH INCLUDES SECTION 306, SHALL BE APPLICABLE TO PURCHASES AND CONTRACTS FOR SUPPLIES OR SERVICES MADE BY (1) THE GENERAL SERVICES ADMINISTRATION, AND (2) BY ANY OTHER EXECUTIVE AGENCY (EXCEPT ANY AGENCY NAMED IN SECTION 2 (A) OF THE ARMED SERVICES PROCUREMENT ACT OF 1947, 62 STAT. 21), TO THE EXTENT OF AND IN CONFORMITY WITH AUTHORITY DELEGATED BY THE ADMINISTRATOR PURSUANT TO THE PROVISIONS OF THIS SUBSECTION.

THUS, THE AUTHORITY TO REMIT LIQUIDATED DAMAGES CONFERRED ON THE COMPTROLLER GENERAL BY SECTION 306 IS LIMITED TO CONTRACTS ENTERED INTO PURSUANT TO TITLE III OF THE ACT. SINCE THE INSTANT CONTRACT WAS ENTERED INTO ON AUGUST 2, 1946, AND THE SUBJECT ACT WAS NOT APPROVED UNTIL JUNE 30, 1949, IT IS EVIDENT THAT THE CONTRACT WAS NOT MADE PURSUANT TO THE ACT. ACCORDINGLY, THE CONCLUSION IS REQUIRED THAT THE COMPTROLLER GENERAL IS NOT AUTHORIZED UNDER SAID SECTION 306 TO REMIT THE LIQUIDATED DAMAGES IN THIS CASE.