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B-168634, JAN. 16, 1970

B-168634 Jan 16, 1970
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SINCE APPEAL OF DEFAULT TERMINATION IS PENDING BEFORE ARMED SERVICES BOARD OF CONTRACT APPEALS. IF APPEAL IS UNSUCCESSFUL AND IF DENIAL OF CLAIM IS BELIEVED TO BE ERRONEOUS IN POINT OF FACT OR LAW. WE HAVE BEEN INFORMALLY ADVISED BY HEADQUARTERS ARMY MATERIEL COMMAND. THAT AN APPEAL FROM THE CONTRACTING OFFICER'S DECISION TO TERMINATE YOUR CONTRACT FOR DEFAULT IS PRESENTLY PENDING BEFORE THE ARMED SERVICES BOARD OF CONTRACT APPEALS (ASBCA). THE MERITS OF YOUR PROTEST ARE NOT PROPERLY FOR CONSIDERATION BY OUR OFFICE AT THIS TIME. BOTH THE CONTRACTOR AND THE GOVERNMENT ARE BOUND TO FOLLOW THE PROCEDURES SET OUT IN THE CONTRACT FOR THE ADMINISTRATIVE SETTLEMENT OF DISPUTES ARISING OUT OF THE CONTRACT AND THE CONTRACTOR MUST EXHAUST ITS REMEDIES UNDER THE DISPUTES CLAUSE BEFORE RESORTING EITHER TO OUR OFFICE OR THE COURTS.

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B-168634, JAN. 16, 1970

CONTRACTS--TERMINATION--DISPUTES DECISION TO STANDARD ELECTRONICS CORP. CONCERNING DEFAULT TERMINATION AND REPROCUREMENT OF ITEM FOR SACRAMENTO ARMY DEPOT. SINCE APPEAL OF DEFAULT TERMINATION IS PENDING BEFORE ARMED SERVICES BOARD OF CONTRACT APPEALS, MERITS OF PROTEST MAY NOT BE CONSIDERED BY COMPTROLLER GENERAL. IF APPEAL IS UNSUCCESSFUL AND IF DENIAL OF CLAIM IS BELIEVED TO BE ERRONEOUS IN POINT OF FACT OR LAW, THEN COMPTROLLER GENERAL MAY REVIEW ACCORDING TO WUNDERLICH ACT STANDARDS.

TO STANDARD ELECTRONICS CORPORATION:

WE REFER TO YOUR TELEGRAM OF DECEMBER 15, 1969, AND LETTER, WITH ENCLOSURES, DATED DECEMBER 20, 1969, PROTESTING AGAINST THE DEFAULT TERMINATION OF YOUR CONTRACT NO. DAAG08-69-C-1531 BY THE SACRAMENTO ARMY DEPOT, AND THE PROPOSED REPROCUREMENT OF THE ITEM FROM ANOTHER SOURCE.

WE HAVE BEEN INFORMALLY ADVISED BY HEADQUARTERS ARMY MATERIEL COMMAND, WASHINGTON, D.C; THAT AN APPEAL FROM THE CONTRACTING OFFICER'S DECISION TO TERMINATE YOUR CONTRACT FOR DEFAULT IS PRESENTLY PENDING BEFORE THE ARMED SERVICES BOARD OF CONTRACT APPEALS (ASBCA). IN VIEW OF THIS INFORMATION, THE MERITS OF YOUR PROTEST ARE NOT PROPERLY FOR CONSIDERATION BY OUR OFFICE AT THIS TIME. BOTH THE CONTRACTOR AND THE GOVERNMENT ARE BOUND TO FOLLOW THE PROCEDURES SET OUT IN THE CONTRACT FOR THE ADMINISTRATIVE SETTLEMENT OF DISPUTES ARISING OUT OF THE CONTRACT AND THE CONTRACTOR MUST EXHAUST ITS REMEDIES UNDER THE DISPUTES CLAUSE BEFORE RESORTING EITHER TO OUR OFFICE OR THE COURTS. SEE UNITED STATES V. HAMMER CONTRACTING CORPORATION, 331 F. 2D 173 (1964); BEACON CONSTRUCTION COMPANY OF MASS. V. UNITED STATES, 314 F. 2D 501 (1963); UNITED STATES V. PETER KIEWIT SONS' CO; 345 F. 2D 879 (1965); 37 COMP. GEN. 568 (1958), AND AUTHORITIES CITED THEREIN.

IF YOU ARE UNSUCCESSFUL IN YOUR APPEAL BEFORE THE ASBCA AND IF YOU BELIEVE THAT THE DENIAL OF YOUR CLAIM WAS ERRONEOUS IN POINT OF FACT OR LAW, YOU MAY THEN REQUEST OUR OFFICE TO REVIEW THE MATTER ACCORDING TO THE STANDARDS OF THE WUNDERLICH ACT, 41 U.S.C. 321, 322.

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