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B-124619, APR. 20, 1956

B-124619 Apr 20, 1956
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TO UNITED OCEANIC CORPORATION: REFERENCE IS MADE TO YOUR LETTER DATED NOVEMBER 4. YOU STATE THAT SINCE YOU WERE IN A POSITION ON AUGUST 29. YOU CANNOT FAIRLY BE CONSIDERED TO HAVE BEEN IN DEFAULT UNDER THE TERMS OF THE CASH BOND. IT IS YOUR CONTENTION THAT AS OF THE END OF AUGUST YOU WERE IN A POSITION TO MEET THE CONDITIONS OF THE CASH BOND. IT IS CONTENDED THAT THE BOND IN QUESTION WAS NOT GIVEN TO SECURE PERFORMANCE BY YOUR CORPORATION OF THE AWARD OF CHARTERS BUT TO SECURE THE OBLIGATION OF THE CORPORATION TO FURNISH WITHIN A 60-DAY PERIOD "AS EVIDENCE OF ITS ABILITY TO PERFORM UNDER SAID AWARD THE FOLLOWING DOCUMENT IN A FORM ACCEPTABLE TO THE GOVERNMENT.'. THE DOCUMENTS IN QUESTION WERE (1) FINANCING COMMITMENTS.

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B-124619, APR. 20, 1956

TO UNITED OCEANIC CORPORATION:

REFERENCE IS MADE TO YOUR LETTER DATED NOVEMBER 4, 1955, AND SUBSEQUENT CORRESPONDENCE, FROM YOUR ATTORNEY, CLAIMING THE AMOUNT OF $50,000, WHICH HAD BEEN DEPOSITED BY YOUR CORPORATION IN CONNECTION WITH OFFERS MADE FOR THE CHARTERING OF EIGHT TANKERS UNDER PUBLIC LAW 575, 83D CONGRESS (34 U.S.C. 498/0/-/Q) ).

IN YOUR LETTER OF NOVEMBER 4, 1955, YOU STATE THAT SINCE YOU WERE IN A POSITION ON AUGUST 29, 1955 (WITHIN 60 DAYS AFTER THE INITIAL AWARD), TO CARRY OUT THE AWARD MADE TO YOUR CORPORATION, AND HAD FURNISHED THE MILITARY SEA TRANSPORTATION SERVICE REASONABLE EVIDENCE OF YOUR ABILITY TO CARRY OUT THE AWARD AT THAT TIME, YOU CANNOT FAIRLY BE CONSIDERED TO HAVE BEEN IN DEFAULT UNDER THE TERMS OF THE CASH BOND, AS EXTENDED. HENCE, IT IS YOUR CONTENTION THAT AS OF THE END OF AUGUST YOU WERE IN A POSITION TO MEET THE CONDITIONS OF THE CASH BOND. ALSO, IN A LETTER DATED MARCH 2, 1956, FROM YOUR ATTORNEY, IT IS CONTENDED THAT THE BOND IN QUESTION WAS NOT GIVEN TO SECURE PERFORMANCE BY YOUR CORPORATION OF THE AWARD OF CHARTERS BUT TO SECURE THE OBLIGATION OF THE CORPORATION TO FURNISH WITHIN A 60-DAY PERIOD "AS EVIDENCE OF ITS ABILITY TO PERFORM UNDER SAID AWARD THE FOLLOWING DOCUMENT IN A FORM ACCEPTABLE TO THE GOVERNMENT.' THE DOCUMENTS IN QUESTION WERE (1) FINANCING COMMITMENTS, (2) SHIPYARD COMMITMENTS AND (3) A COMMITMENT FROM THE MARITIME ADMINISTRATION TO GRANT MORTGAGE INSURANCE.

A BRIEF REVIEW OF THE RECORD AS PRESENTED TO THIS OFFICE INDICATES THAT THE AWARD OF JUNE 30, 1955, TO YOUR CORPORATION, OF CHARTERS FOR EIGHT TANKERS WAS CONDITIONED UPON THE EXECUTION OF A DEFINITIVE CONTRACT AND THE FURNISHING BY YOUR CORPORATION WITHIN 60 DAYS, AND IN ACCORDANCE WITH THE TERMS OF YOUR CASH BOND OF JUNE 20, 1955, OF FIRM EVIDENCE OF YOUR ABILITY TO FINANCE, CONSTRUCT AND OPERATE THE VESSELS. THE PERTINENT PROVISION OF THE AFOREMENTIONED BOND READS AS FOLLOWS:

"4. WHEREAS, ALSO, OCEANIC HAS DELIVERED TO THE GOVERNMENT, OR WILL DELIVER TO THE GOVERNMENT WITHIN TWO (2) WORKING DAYS FROM THE DATE HEREOF THE SUM OF FIFTY THOUSAND ($50,000.00) DOLLARS AS A CASH BOND TO ASSURE THE GOVERNMENT THAT ITS SAID REPRESENTATIONS ARE FIRM OR, IF IN PRINCIPLE, THAT THEY CAN BE REDUCED TO FIRM COMMITMENTS WITHOUT UNDUE DELAY AND THAT IN THE EVENT IT SHOULD BE AWARDED A CONTRACT UNDER COMSTS LETTER SERIAL 1913M34, DATED 20 AUGUST 1954, OCEANIC CAN AND WILL PRODUCE DOCUMENTARY EVIDENCE OF SAID FIRMNESS WITHIN SIXTY (60) DAYS FROM THE GRANTING TO IT OF AN AWARD CONDITIONED UPON SUBMISSION OF SUCH PROOF, AND WILL THEREAFTER ACCEPT A FINAL AWARD IN ACCORDANCE WITH ITS SAID OFFER AND UNDERTAKE THE PERFORMANCE OF THE AWARD.'

IN SUBSTANCE, THE BOND ALSO PROVIDED THAT THE SUM OF $50,000 WOULD BE FORFEITED TO THE GOVERNMENT IN THE EVENT THE CORPORATION SHOULD FAIL WITHIN 60 DAYS OF AWARD TO (1) MEET THE MINIMUM REQUIREMENTS OF THE MARITIME COMMISSION FOR MORTGAGE INSURANCE, (2) PRESENT PROOF OF FIRM FINANCIAL COMMITMENTS BY PERSONS SPECIFIED IN THE OFFER AND (3) FURNISH EXECUTED COPIES OF CONSTRUCTION CONTRACTS ENTERED INTO BETWEEN THE OFFEROR AND THE SHIPYARDS SPECIFIED IN THE AWARD, SUCH CONSTRUCTION CONTRACTS TO BE IN COMPLIANCE WITH THE REQUIRED SPECIFICATIONS AND DELIVERY DATES.

SHORTLY AFTER THE CONDITIONAL AWARD OF JUNE 30, 1955, CERTAIN PROTESTS WERE FILED WITH THE SENATE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE AND, ON JULY 11, 1955, THE CHAIRMAN OF THAT COMMITTEE REQUESTED THE GENERAL ACCOUNTING OFFICE TO CONDUCT A PREAUDIT OF THE AWARD TO YOUR CORPORATION AND THE PROCEDURES USED IN EVALUATING THE BIDS OF THE VARIOUS OFFERORS. ALSO, ON JULY 14 A FORMAL PROTEST WAS FILED IN THIS OFFICE BY BIG TANKERS, INC., AND ON THE DAY FOLLOWING THERE WAS RECEIVED A PROTEST FROM THE OLEUM-ATLANTIC LINES, BOTH OF WHOM HAD BEEN UNSUCCESSFUL BIDDERS. IMMEDIATELY UPON RECEIPT OF THE FOREGOING, OUR DIVISION OF AUDITS WAS INSTRUCTED TO CONDUCT THE PRE AUDIT, AND THE DEPARTMENT OF THE NAVY WAS REQUESTED TO FURNISH A COMPLETE REPORT CONCERNING THE ALLEGATIONS SET FORTH IN THE PROTESTS. FOLLOWING SUCH REPORTS, THERE WERE RECEIVED ADDITIONAL DATA FROM THE PROTESTORS WHICH ALSO REQUIRED ADDITIONAL COMMENTS FROM THE ADMINISTRATIVE OFFICE. IN VIEW OF THIS SITUATION, THE DEPARTMENT OF THE NAVY WITHHELD FORMAL CONFIRMATION OF THE AWARD PENDING THE ISSUANCE OF OUR DECISIONS ON THE PROTESTS AND THE COMPLETION OF OUR REPORT TO THE SENATE COMMITTEE.

HAVING BEEN APPRISED OF THESE EVENTS, AND REALIZING THE INABILITY OF THE MILITARY SEA TRANSPORTATION SERVICE TO CONFIRM THE AWARD, YOUR CORPORATION BY AGREEMENT DATED AUGUST 26, 1955--- FOUR DAYS PRIOR TO THE EXPIRATION OF YOUR 60-DAY PERIOD--- AMENDED THE BOND OF JUNE 21, 1955, WHEREIN THE TIME FOR OBTAINING THE FIRM COMMITMENTS WAS EXTENDED UNTIL TEN DAYS AFTER THE COMPTROLLER GENERAL'S DECISION ON THE VARIOUS PROTESTS, OR THE FORMAL CONFIRMATION BY THE DEPARTMENT OF THE NAVY OF THE PROPOSED AWARD, WHICHEVER WAS LATER. BY SUCH AGREEMENT, PARAGRAPH 6 OF THE ORIGINAL BOND WAS AMENDED TO READ AS FOLLOWS:

"THE CONDITION OF THIS OBLIGATION IS SUCH, THAT SAID BOND SHALL BE FORFEITED TO THE GOVERNMENT IF OCEANIC SHALL FAIL TO FURNISH THE GOVERNMENT AS EVIDENCE OF ITS ABILITY TO PERFORM UNDER THE FORMAL AWARD THE DOCUMENTS DESCRIBED IN (A), (B) AND (C) BELOW IN A FORM ACCEPTABLE TO THE GOVERNMENT, WITHIN TEN (10) DAYS FROM AND AFTER DECISION BY THE COMPTROLLER GENERAL ON THE PROTESTS OF BIG TANKERS AND OLEUM/ATLANTIC OR FROM THE FORMAL CONFIRMATION BY COMMANDER MILITARY SEA TRANSPORTATION SERVICE OF THE CONDITIONAL AWARD, WHICHEVER DATE IS THE LATER, OR FROM SUCH OTHER TIME AS SPECIFIED IN PARAGRAPH 7 BELOW: "

THE REFERRED-TO PARAGRAPH 7 READS AS FOLLOWS:

"THE TEN (10) DAY PERIOD REFERRED TO IN PARAGRAPH 6 ABOVE MAY BE EXTENDED FOR SUCH ADDITIONAL TIME AS IS DETERMINED BY COMMANDER MILITARY SEA TRANSPORTATION SERVICE TO BE IN THE BEST INTERESTS OF THE GOVERNMENT AND REASONABLY NECESSARY (1) BECAUSE OF FURTHER DELAYS OCCASIONED BY ACTION OR INACTION ON THE PART OF THE GOVERNMENT, AND (2) FOR AGREEMENT BY ALL CONCERNED ON THE DEFINITIVE LANGUAGE OF THE FINANCIAL AND CONTRACTUAL DOCUMENTS.'

OUR DECISIONS WERE ISSUED ON SEPTEMBER 30, 1955, AND IT IS REPORTED THAT ORAL NOTICE OF SUCH DECISIONS WAS GIVEN TO YOUR CORPORATION ON THE SAME DATE. FURTHERMORE, SUCH ORAL NOTICE AND THE AWARD WERE CONFIRMED BY THE COMMANDER, MILITARY SEA TRANSPORTATION SERVICE, BY LETTER DATED OCTOBER 10, 1955. SUCH LETTER READ AS FOLLOWS:

"THIS LETTER CONFIRMS THE ORAL NOTICE GIVEN TO YOU ON 30 SEPTEMBER 1955 THAT THE COMPTROLLER GENERAL HAD ISSUED HIS DECISIONS WITH REGARD TO THE PROTESTS OF BIG TANKERS AND OLEUM/ATLANTIC ON 30 SEPTEMBER AND THAT SUCH DECISIONS UPHELD THE AWARD MADE TO YOU AS SET FORTH IN MY TELEGRAM OF 30 JUNE 1955.

"YOUR ATTENTION IS INVITED TO THE CONDITIONS OF AWARD TO BE COMPLIED WITH BY YOU IN ACCORDANCE WITH THE TERMS OF THE CASH BOND EXECUTED BY YOU ON THE 21ST DAY OF JUNE 1955 AS AMENDED 26 GUST.'

ON OCTOBER 24, 1955, YOU GAVE ORAL NOTICE TO THE COMMANDER, MILITARY SEA TRANSPORTATION SERVICE, THAT BY OCTOBER 28, 1955, YOU WOULD OBTAIN BINDING COMMITMENTS IN WRITING COVERING ALL ASPECTS OF YOUR FINANCIAL AND CONSTRUCTION PLANS AND, THEREFORE, YOU REQUESTED THAT THE TIME FOR PERFORMING UNDER THE TERMS OF THE CASH BOND BE EXTENDED TO THE CLOSE OF BUSINESS AS OF THAT DATE. SUCH REQUESTS WAS GRANTED, AND AT THAT TIME YOU AGAIN WERE REMINDED THAT YOU WOULD BE HELD TO STRICT COMPLIANCE WITH THE PERFORMANCE PROVISIONS AND CONDITIONS OF THE BOND. ON OCTOBER 28, 1955, YOU REQUESTED AN ADDITIONAL EXTENSION OF TIME, AND AT THAT TIME YOU PRESENTED CERTAIN ALTERNATIVE METHODS OF CHARTERING FOR CONSIDERATION--- ALL OF WHICH WERE AT VARIANCE WITH YOUR ORIGINAL COMMITMENTS. IN RESPONSE TO THIS LETTER, THE COMMANDER, MILITARY SEA TRANSPORTATION SERVICE, ON NOVEMBER 2, 1955, INFORMED YOU THAT THE ALTERNATIVES COULD NOT BE ACCEPTED, AND THAT YOU WERE CONSIDERED AS HAVING FAILED TO MEET THE PROVISIONS OF THE CONDITIONAL AWARD, AND TO HAVE FORFEITED YOUR RIGHTS UNDER THE AWARD AND THE SUM FURNISHED WITH YOUR BOND.

A REVIEW OF EVENTS LEADING TO THE ISSUANCE OF THE CASH BOND IN QUESTION INDICATES THAT THE FINANCIAL PLANS SUBMITTED BY THE OFFERORS REVEALED THAT NONE OF THEM WERE IN A POSITION TO PROCEED WITH SHIP CONSTRUCTION IMMEDIATELY UPON RECEIPT OF AN AWARD, AND THAT ALL OF THE OFFERORS REQUIRED TIME AFTER RECEIVING AN AWARD TO FIRM UP THEIR FINANCING. EQUITY CAPITAL HAD TO BE RAISED, LOANS HAD TO BE FLOATED AND MORTGAGE INSURANCE OBTAINED FROM THE MARITIME ADMINISTRATION. EACH OFFEROR WAS ALLEGING THAT ITS OWN FINANCING WAS FIRM AND INTIMATING OR CHARGING THAT THE ABILITY OF THE OTHERS TO FINANCE THE REQUIRED CONSTRUCTION WAS DOUBTFUL. IN THESE CIRCUMSTANCES, THE BOND WAS REQUIRED, AND IT WAS DESIGNED TO LEAVE LITTLE DOUBT AS TO WHETHER A PARTICULAR FIRM TO WHOM A CONDITIONAL AWARD WAS MADE COULD OR COULD NOT MEET THE CONDITIONS. WHILE THE FINANCIAL PLANS OF SOME OFFERORS APPEARED TO HAVE BEEN FIRMER THAN OTHERS, PARTICULARLY AS TO EQUITY FINANCING, SUCH DIFFERENCE, IN TERMS OF THE RELATIVE FINANCIAL PLANS OF ALL THE OFFERORS, WAS NOT SUCH AS TO JUSTIFY REJECTION OF ANY ONE OR MORE OF THE OFFERORS IN FAVOR OF THE OTHERS. IN THESE CIRCUMSTANCES, THE MILITARY SEA TRANSPORTATION SERVICE WAS FACED WITH THE PROBLEM OF EITHER REJECTING ALL OFFERS FOR LACK OF SUFFICIENTLY FIRM FINANCING, THEREBY FURTHER DELAYING A PROGRAM CONSIDERED TO BE URGENT, OR OF FINDING SOME OTHER MEANS WITHIN THE FRAMEWORK OF THE EXISTING SITUATION BY WHICH AN AWARD OR AWARDS COULD BE MADE. THE MILITARY SEA TRANSPORTATION SERVICE CHOSE THE LATTER COURSE BY DEFINING THE CONDITIONS UNDER WHICH AN AWARD WOULD BE MADE. SUCH CONDITIONS WERE SET FORTH IN A SO-CALLED "STATEMENT OF UNDERSTANDING" WHICH WAS THE SUBJECT OF A CONFERENCE ON JUNE 22, 1955. SECTION 3 OF SUCH "STATEMENT" REQUIRED THE DEPOSIT OF A $50,000 CASH BOND, AND IN SUBSTANCE EMBODIED THE SAME PROVISIONS WITH RESPECT TO ITS FORFEITURE AS CONTAINED IN YOUR BOND.

THE TERMS SET FORTH IN YOUR BOND OF JUNE 21, 1955, APPEAR TO BE CLEAR AND UNAMBIGUOUS, AND THE POINT RAISED BY YOUR ATTORNEY THAT IT WAS NOT GIVEN TO SECURE PERFORMANCE BY YOUR CORPORATION OF THE AWARD OF CHARTERS IS WELL TAKEN. HOWEVER, AS FURTHER POINTED OUT BY YOUR ATTORNEY, IT WAS GIVEN TO SECURE THE OBLIGATION OF YOUR CORPORATION TO FURNISH WITHIN A 60-DAY PERIOD CERTAIN DOCUMENTS IN A FORM ACCEPTABLE TO THE GOVERNMENT AS EVIDENCE OF YOUR ABILITY TO PERFORM. REDUCED TO ITS SIMPLEST TERMS, THEREFORE, IT IS YOUR CONTENTION THAT SUCH EVIDENCE HAD BEEN FURNISHED AS OF AUGUST 29, 1955, AND, IN VIEW THEREOF, THE CONDITIONS OF THE BOND HAD BEEN COMPLIED WITH. SUCH A CONTENTION DOES NOT APPEAR IN CONFORMITY WITH THE FACTS OF RECORD IN THIS OFFICE. SECTION 6 OF THE BOND DATED JUNE 21, 1955, SETS FORTH IN UNEQUIVOCAL TERMS THAT SUCH BOND SHALL BE FORFEITED IF WITHIN 60 DAYS FROM AND AFTER AWARD THE CORPORATION SHOULD FAIL TO FURNISH THE FOLLOWING DOCUMENTS:

"/A) A STATEMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF EACH OF THE INDIVIDUALS, CORPORATIONS OR FINANCIAL INSTITUTIONS NAMED IN PARAGRAPH 3 ABOVE CONSTITUTING A FIRM COMMITMENT ON HIS OR ITS PART TO FURNISH FOR THE CONSTRUCTION OR OPERATION OF THE SAID TANKERS, EITHER AS A LOAN, CREDIT OR PURCHASE OF BONDS OR STOCK, THE AMOUNT OR AMOUNTS HERETOFORE SET OPPOSITE HIS OR ITS NAME;

"/B) AN EXECUTED COPY OF A CONTRACT WITH EACH OF THE SHIPYARDS LISTED IN PARAGRAPH 3 ABOVE IN WHICH THE SHIPYARD AGREES TO CONSTRUCT AND DELIVER TO OCEANIC TANKERS OF THE SPECIFICATIONS SET OUT IN COMSTS LETTER SERIAL 1913M34, DATED 20 AUGUST 1954, IN THE NUMBER SET OPPOSITE THE NAME OF THE SHIPYARD IN PARAGRAPH 3, SAID TANKERS TO BE DELIVERED TO OCEANIC WITHIN SUFFICIENT TIME TO PERMIT THEIR TENDER TO THE GOVERNMENT WITHIN TWO YEARS FROM THE DATE OF THE FINAL AWARD BY THE GOVERNMENT OF A CHARTER OR CHARTERS TO OCEANIC; THE SAID CONTRACT, OR A SUPPLEMENTARY AGREEMENT BETWEEN OCEANIC AND THE SHIPYARD, SHALL CLEARLY ESTABLISH THAT THE LATTER ACCEPTS THE FINANCING PROPOSED BY OCEANIC IN PAYMENT OF THE COST OF CONSTRUCTION OF THE TANKERS.

"/C) A FIRM COMMITMENT IN WRITING BY THE MARITIME ADMINISTRATION TO GRANT TO OCEANIC MORTGAGE INSURANCE FOR 90 PERCENT OF 87 1/2 PERCENT OF THE CONSTRUCTION COSTS OF THE TANKERS COVERED BY THE CONDITIONAL AWARD, TOGETHER WITH APPROVAL IN WRITING BY THE MARITIME ADMINISTRATION OF THE CITIZENSHIP OF THE STOCKHOLDERS OF OCEANIC, THE CONTROL OF SUCH STOCK, AND THE OPERATING ORGANIZATION PROPOSED BY OCEANIC TO OPERATE THE TANKERS WHILE SAID TANKERS ARE TO BE UNDER TIME CHARTER TO THE GOVERNMENT.'

THE FOREGOING CONDITIONS WOULD APPEAR TO REQUIRE NO CLARIFICATION, AND IT IS MANIFEST THAT THEY WERE REQUIRED TO BE PERFORMED WITHIN 60 DAYS FROM THE DATE OF THE CONDITIONAL AWARD--- OR BY THE END OF AUGUST 29, 1955. EVIDENCE OF RECORD IN THIS OFFICE INDICATES THAT, WHILE YOUR CORPORATION HAD OBTAINED COMMITMENTS IN PRINCIPLE COVERING ALL OF ITS PROPOSED FINANCING AND CONSTRUCTION, AND ON AUGUST 31, 1955, HAD RECEIVED APPROVAL FROM THE MARITIME ADMINISTRATION FOR MORTGAGE INSURANCE, IT HAD NOT PRODUCED "AN EXECUTED COPY OF A CONTRACT WITH EACH OF THE SHIPYARDS" AS REQUIRED BY SUBPARAGRAPH (B) OF PARAGRAPH 6 OF THE BOND. FURTHERMORE, NO MENTION WAS MADE OF SUCH OMISSION IN THE LETTER DATED SEPTEMBER 1, 1955, FROM YOUR ATTORNEY TO THE MILITARY SEA TRANSPORTATION SERVICE; AND IN THIS CONNECTION, THE SECRETARY OF THE NAVY, IN A LETTER DATED FEBRUARY 24, 1956, ADVISED THIS OFFICE THAT HIS DEPARTMENT DID NOT CONSIDER THAT FIRM BINDING COMMITMENTS IN THE DEFINITIVE FORM ORIGINALLY CONTEMPLATED WERE OBTAINED BY YOUR CORPORATION PRIOR TO THE END OF AUGUST 1955. VIEW OF THIS SITUATION, THEREFORE, YOUR CONTENTIONS THAT THE REQUIREMENTS OF THE BOND OF JUNE 21, 1955, WERE COMPLIED WITH APPEAR TO BE WITHOUT MERIT. FURTHERMORE, YOUR FAILURE TO COMPLY WITHIN SUCH 60-DAY PERIOD CANNOT PROPERLY BE IMPUTED TO ANY ACT OF THE GOVERNMENT AS A HINDRANCE TO SUCH PERFORMANCE FOR THE OBVIOUS REASON THAT THE GOVERNMENT WAS UNDER NO OBLIGATION TO MAKE FINAL AWARD UNTIL YOUR CORPORATION HAD COMPLIED WITH THE CONDITIONS OF ITS ORIGINAL BOND.

WITH RESPECT TO THE DOCUMENT SUBSEQUENTLY SIGNED ON AUGUST 26, 1955, IT IS CLEAR THAT THE AMENDMENT MADE NO BASIC CHANGE IN THE ORIGINAL INSTRUMENT EXCEPT TO EXTEND THE TIME OF PERFORMANCE TO "WITHIN TEN (10) DAYS FROM AND AFTER DECISION BY THE COMPTROLLER GENERAL ON THE PROTESTS * * * OR FROM THE FORMAL CONFIRMATION BY COMMANDER MILITARY SEA TRANSPORTATION SERVICE OF THE CONDITIONAL AWARD, WHICHEVER DATE IS LATER.' FURTHERMORE, SINCE SUCH EXTENSION WAS EXECUTED WITH FULL KNOWLEDGE OF THE PENDING PROTESTS BEFORE THE GENERAL ACCOUNTING OFFICE, ITS EXECUTION IN THE FACE OF SUCH KNOWLEDGE WOULD APPEAR TO PRECLUDE CONSIDERATION OF ANY CONTENTION THAT YOUR FAILURE TO PERFORM WAS OCCASIONED BY DELAY ON THE PART OF THE GOVERNMENT IN DISPOSING OF SUCH PROTESTS.

IN THE LIGHT OF THE FOREGOING, THEREFORE, IT MUST BE CONCLUDED THAT THE CONDITIONS OF THE BOND WERE NOT COMPLIED WITH AS CONTENDED BY YOU.

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