B-145410, OCT. 19, 1962

B-145410, OCT. 19, 1962

TO TECHNER, RUBIN AND SHAPIRO:

YOUR LETTER OF OCTOBER 11, 1962, WITH ENCLOSURES, REQUESTED REMISSION OF ALL OR PART OF THE SUM OF $114,654.40 ASSESSED AS LIQUIDATED DAMAGES AGAINST YOUR CLIENT THE GRAMM TRAILER CORPORATION UNDER CONTRACT NO. DA 36 -039-SC-74922, ENTERED INTO UNDER DATE OF MARCH 28, 1958, WITH THE U.S. ARMY SIGNAL AGENCY, FORT MONMOUTH, NEW JERSEY.

THE ENCLOSURES TO YOUR LETTER SHOW THAT IN AN OPINION RENDERED NOVEMBER 3, 1961, BY THE ARMED SERVICES BOARD OF CONTRACT APPEALS, ASBCA NOS. 5847, 5933, 6203, THE BOARD GAVE CONSIDERATION TO THE MATTER OF LIQUIDATED DAMAGES ASSESSED BY THE CONTRACTING OFFICER IN THIS CASE AND EXPRESSED THE OPINION THAT THE APPELLANT'S CHALLENGE TO THE ASSESSMENT OF LIQUIDATED DAMAGES WAS WITHOUT MERIT. ON MARCH 6, 1962, THE BOARD DENIED THE APPELLANT'S MOTION FOR RECONSIDERATION.

SECTION 256A OF TITLE 41, U.S.C. UNDER WHICH YOUR CLIENT NOW SEEKS RELIEF PROVIDES AS FOLLOWS:

HOWEVER, THE AUTOMOBILE ON OR ABOUT JUNE 23, 1960, WAS INADVERTENTLY HEAD OF ANY FEDERAL AGENCY, OR BY OFFICERS AUTHORIZED BY HIM SO TO DO, INCLUDES A PROVISION FOR LIQUIDATED DAMAGES FOR DELAY, THE COMPTROLLER GENERAL UPON RECOMMENDATION OF SUCH HEAD IS AUTHORIZED AND EMPOWERED TO REMIT THE WHOLE OR ANY PART OF SUCH DAMAGES AS IN HIS DISCRETION MAY BE JUST AND EQUITABLE.'

THIS STATUE AUTHORIZES THE GRANTING OF RELIEF ONLY IN THOSE CASES WHERE A FAVORABLE RECOMMENDATION IS MADE BY THE HEAD OF THE AGENCY CONCERNED, IN THIS CASE THE DEPARTMENT OF THE ARMY. SUCH A RECOMMENDATION--- A PREREQUISITE TO ANY ACTION BY OUR OFFICE--- HAS NOT BEEN MADE IN THIS CASE. CONSEQUENTLY, YOUR REQUEST FOR REMISSION OF ALL OR ANY PART OF THE LIQUIDATED DAMAGES ASSESSED IN THIS CASE MUST NECESSARILY BE DENIED UNLESS AND UNTIL WE RECEIVE A FAVORABLE RECOMMENDATION FROM THE DEPARTMENT OF THE ARMY.