B-155729, MAR. 23, 1965

B-155729, MAR. 23, 1965

TO THE HONORABLE DAVID E. BELL, ADMINISTRATOR, AGENCY FOR INTERNATIONAL DEVELOPMENT, DEPARTMENT OF STATE:

REFERENCE IS MADE TO THE LETTER OF DECEMBER 8, 1964, AND ENCLOSURES, FROM J. C. WATKINS, CONTRACTING OFFICER, BUREAU FOR LATIN AMERICA,CONCERNING THE CLAIM OF HERBERT MORDANA IN THE AMOUNT OF $560 UNDER CONTRACT NO. AID/LA-75.

THIS CONTRACT WAS NEGOTIATED WITH THE CONTRACTOR PURSUANT TO THE AUTHORITY OF THE FOREIGN ASSISTANCE ACT OF 1961, 22 U.S.C. 2151, ET SEQ., AS AMENDED, AND IMPLEMENTING EXECUTIVE ORDER 10784. THE CONTRACT WAS EXECUTED ON DECEMBER 13, 1962, AND CALLED FOR THE CONTRACTOR TO PERFORM CERTAIN SERVICES IN CONNECTION WITH THE PUBLICATION OF SEVERAL BOOKS IN LOW-COST SPANISH LANGUAGE EDITIONS FOR A FIXED PRICE OF $9,075. HOWEVER, THE CONTRACTOR'S PERFORMANCE UNDER THIS CONTRACT WAS SUBJECT TO AID FURNISHING HIM TWO COPIES OF THE ORIGINAL ENGLISH LANGUAGE EDITION AND TWO COPIES OF THE SPANISH LANGUAGE MANUSCRIPT OF THE BOOKS INVOLVED AS REQUIRED BY ARTICLE I OF THE CONTRACT. IT IS REPORTED THAT THESE BOOKS HAVE NOT BEEN DELIVERED AS REQUIRED, AND THAT THE FAILURE TO SO DELIVER SAME, WAS AN OVERSIGHT ON THE PART OF THOSE RESPONSIBLE FOR ADMINISTRATION OF THE CONTRACT. MOREOVER, WE HAVE BEEN INFORMALLY ADVISED THAT THE SERVICES CALLED FOR UNDER THE CONTRACT ARE NO LONGER DESIRED BY THE GOVERNMENT.

THE CONTRACTOR, BY LETTER DATED SEPTEMBER 17, 1964, AND SUBSEQUENT CORRESPONDENCE, HAS PRESENTED A CLAIM IN THE AMOUNT OF $560 REPRESENTING EXPENSES ALLEGED TO HAVE BEEN INCURRED IN ADVANCE PREPARATIONS FOR PERFORMANCE OF THE CONTRACT. THE CONTRACTOR HAS STATED THAT THESE EXPENSES WERE INCURRED IN ADVANCE OF RECEIVING THE BOOKS FROM AID "BECAUSE THIS CONTRACT WAS REPRESENTED TO ME AS BEING OF THE GREATEST URGENCY ...' AND "I WAS ALSO ENCOURAGED TO DO AS MUCH ADVANCE PREPARATION AS WOULD ENABLE ME TO PROCESS THIS JOB AS SOON AS I RECEIVED IT.'

THIS CONTRACT INCLUDES PROVISION FOR TERMINATION OF THE CONTRACT FOR THE CONVENIENCE OF THE GOVERNMENT. PARAGRAPH 19, TERMINATION, APPENDIX A, GENERAL PROVISIONS, PROVIDES THAT THE CONTRACT MAY BE TERMINATED BY THE CONTRACTING OFFICER FOR THE CONVENIENCE OF AID UPON THE GIVING OF WRITTEN NOTICE OF SUCH TERMINATION AND THE REASON THEREFOR TO THE CONTRACTOR. THE RIGHTS AND OBLIGATIONS OF THE GOVERNMENT AND CONTRACTOR, RESPECTIVELY, AND THE PROCEDURE FOR DISPOSING OF ANY CLAIM MADE BY THE CONTRACTOR ARE PRESCRIBED IN SUBPARAGRAPH (D), TERMINATION FOR CONVENIENCE, (INCORRECTLY IDENTIFIED AS (C) (, OF THE ABOVE REFERRED TO PARAGRAPH.

IN THE CIRCUMSTANCES, IF THE SERVICES CONTRACTED FOR ARE NO LONGER DESIRED IT IS OUR OPINION THAT THE PROVISIONS OF THE TERMINATION CLAUSE REFERRED TO SHOULD BE INVOKED AND THE CONTRACTOR'S CLAIM DISPOSED OF ACCORDINGLY.