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B-142060, AUG. 6, 1963

B-142060 Aug 06, 1963
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ATTORNEYS AT LAW: FURTHER REFERENCE IS MADE TO YOUR LETTER OF JULY 1. IT IS OUR UNDERSTANDING THAT THE ONLY MONEYS WHICH MAY NOW BE PAYABLE UNDER THE CONTRACT. WHICH WAS COMPLETED IN 1961. ARE THOSE CLAIMED AS EXTRAS BY THE CONTRACTOR. WE UNDERSTAND FURTHER THAT AGREEMENT AS TO AMOUNT WAS REACHED BY THE PARTIES ON MAY 16. WE ARE INFORMED THAT THE CONTRACTOR BY LETTER OF JUNE 13. THAT FURTHER ADMINISTRATIVE PROCEEDINGS WILL BE NECESSARY BEFORE IT CAN BE DETERMINED HOW MUCH.

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B-142060, AUG. 6, 1963

TO MR. HENRY JAMES WALLACH, HART, HUME AND ENGLEMAN, ATTORNEYS AT LAW:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF JULY 1, 1963, CONCERNING YOUR REQUEST THAT THE BALANCE DUE UNDER CONTRACT NO. NBY-21183, ENTERED INTO WITH THE OVE GUSTAVSSON CONTRACTING CO., INC., BE PAID TO THE HANOVER INSURANCE COMPANY.

IT IS OUR UNDERSTANDING THAT THE ONLY MONEYS WHICH MAY NOW BE PAYABLE UNDER THE CONTRACT, WHICH WAS COMPLETED IN 1961, ARE THOSE CLAIMED AS EXTRAS BY THE CONTRACTOR. WE UNDERSTAND FURTHER THAT AGREEMENT AS TO AMOUNT WAS REACHED BY THE PARTIES ON MAY 16, 1963, AND EMBODIED IN CHANGE F TO THE CONTRACT. HOWEVER, WE ARE INFORMED THAT THE CONTRACTOR BY LETTER OF JUNE 13, 1963, TO THE NAVY, HAS REPUDIATED ITS AGREEMENT TO CHANGE F, AND THAT FURTHER ADMINISTRATIVE PROCEEDINGS WILL BE NECESSARY BEFORE IT CAN BE DETERMINED HOW MUCH, IF ANY, ADDITIONAL AMOUNTS MAY BE PAYABLE UNDER THE CONTRACT.

IN THESE CIRCUMSTANCES, WE MUST DECLINE TO RULE UPON THE ACCEPTABILITY OF YOUR PROPOSAL TO INDEMNIFY THE UNITED STATES AGAINST ANY LOSS RESULTING FROM PAYMENT OF THE CONTRACT BALANCE TO YOUR CLIENT.

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