B-156518, MAY 14, 1974
Highlights
SCOPE OF WORK HAD BEEN UNDERESTIMATED AND REVISED ESTIMATED COST WAS $15. GAO WILL NOT OBJECT TO PAYMENT OF ADDITIONAL SUM REPRESENTING WORK PERFORMED IN GOOD FAITH AND BENEFITS THEREOF RECEIVED BY GOVERNMENT. WHICH WAS CREATED BY PUBLIC LAW 91-213. WE UNDERSTAND THAT FUNDS ARE AVAILABLE FOR PAYMENT OF THE ADDITIONAL AMOUNT CLAIMED BY THE CONTRACTOR. THE LETTER STATED THAT IT WAS TENTATIVELY AGREED THAT THE COST OF THE EFFORT SHOULD NOT EXCEED $10. PAGE PROOFS FOR EACH VOLUME TO BE INDEXED WERE TO BE FORWARDED BY THE COMMISSION TO THE COUNCIL UPON THEIR AVAILABILITY. THE COMMISSION WAS TO ARRANGE FOR THE PRINTING OF THE INDEX. THE ADMINISTRATIVE OFFICER REPORTS THAT THE FOREGOING LETTER AND ITS REFERENCED PRICE WAS PREDICATED UPON AN ESTIMATED 10.
B-156518, MAY 14, 1974
ALTHOUGH GOVERNMENT COMMISSION HAD INFORMALLY AGREED IN TELEPHONE CONVERSATIONS WITH CONTRACTOR THAT COMPENSATION FOR SERVICES REQUESTED WOULD NOT EXCEED $10,000, GAO DOES NOT CONSIDER LETTER REFERENCING SUCH CONVERSATIONS AS FIXED PRICE CONTRACT PRECLUDING ADDITIONAL COMPENSATION WHERE COMMISSION LATER DETERMINED THAT THERE HAD BEEN DELAYS IN DELIVERY OF GOVERNMENT FURNISHED MATERIALS, SCOPE OF WORK HAD BEEN UNDERESTIMATED AND REVISED ESTIMATED COST WAS $15,000. ACCORDINGLY, GAO WILL NOT OBJECT TO PAYMENT OF ADDITIONAL SUM REPRESENTING WORK PERFORMED IN GOOD FAITH AND BENEFITS THEREOF RECEIVED BY GOVERNMENT.
TO PRESIDENT OF THE POPULATION COUNCIL:
THE ADMINISTRATIVE OFFICER OF THE COMMISSION ON POPULATION GROWTH AND THE AMERICAN FUTURE, WHICH WAS CREATED BY PUBLIC LAW 91-213, ENACTED MARCH 16, 1970, TO INVESTIGATE SPECIFIED ASPECTS OF POPULATION GROWTH IN THE UNITED STATES, AND TO PROVIDE THE PRESIDENT AND CONGRESS WITH ITS FINDINGS AND RECOMMENDATIONS, REQUESTS OUR ADVICE AS TO THE PROPRIETY OF INCREASING THE PRICE OF ONE OF THE COMMISSION'S CONTRACTS. SUBSEQUENT TO AWARD OF THE SUBJECT CONTRACT, THE COMMISSION CEASED TO EXIST. HOWEVER, WE UNDERSTAND THAT FUNDS ARE AVAILABLE FOR PAYMENT OF THE ADDITIONAL AMOUNT CLAIMED BY THE CONTRACTOR.
BY LETTER OF MAY 15, 1972, TO THE PRESIDENT OF THE POPULATION COUNCIL, NEW YORK CITY, THE EXECUTIVE DIRECTOR OF THE COMMISSION CONFIRMED SEVERAL CONVERSATIONS CONCERNING THE WILLINGNESS OF THE COUNCIL TO UNDERTAKE THE PREPARATION OF AN INDEX TO THE COMMISSION'S ENTIRE COLLECTION OF PAPERS, STUDIES, AND HEARINGS STATEMENTS TO BE ISSUED AS THE FINAL VOLUME OF THE COMMISSION'S PUBLICATIONS. THE LETTER STATED THAT IT WAS TENTATIVELY AGREED THAT THE COST OF THE EFFORT SHOULD NOT EXCEED $10,000. PAGE PROOFS FOR EACH VOLUME TO BE INDEXED WERE TO BE FORWARDED BY THE COMMISSION TO THE COUNCIL UPON THEIR AVAILABILITY. THE COMMISSION WAS TO ARRANGE FOR THE PRINTING OF THE INDEX.
THE ADMINISTRATIVE OFFICER REPORTS THAT THE FOREGOING LETTER AND ITS REFERENCED PRICE WAS PREDICATED UPON AN ESTIMATED 10,000 PAGES OF MANUSCRIPT WITH A SCHEDULED DELIVERY OF THE LAST GALLEYS BY AUGUST 31, 1972. BECAUSE OF ADMINISTRATIVE DELAYS IN RECEIPT OF THE GALLEYS BY THE CONTRACTOR, THE LAST GALLEYS WERE NOT DELIVERED BY THE CONTRACTOR UNTIL NOVEMBER 1973. MOREOVER, THE MANUSCRIPT TOTALS HAD BEEN UNDERESTIMATED, RESULTING IN A REVISED ESTIMATE IN THE TOTAL COST OF THE PROJECT OF $15,000. THEREFORE, OUR ADVICE AS TO THE PROPRIETY OF PAYING AN ADDITIONAL $5,000 IS REQUESTED.
WITH REGARD TO THE LETTER OF MAY 15, 1972, TO THE POPULATION COUNCIL, WE DO NOT CONSIDER IT TO CONSTITUTE A FORMAL FIXED PRICE CONTRACT BUT RATHER A WRITTEN MEMORANDUM OF CONVERSATIONS IN WHICH IT WAS "TENTATIVELY AGREED THAT THE COST OF THE EFFORT SHALL NOT EXCEED TEN THOUSAND DOLLARS ($10,000)." IT ALSO APPEARS THAT THE ADDITIONAL INDEXING SERVICES WERE PERFORMED IN GOOD FAITH BY THE CONTRACTOR. FURTHERMORE, IT DOES NOT APPEAR THAT THE DELAY IN DELIVERY OF THE GALLEYS OR ADDITIONAL WORK BEYOND THAT WHICH WAS INITIALLY ESTIMATED WAS THE FAULT OF THE CONTRACTOR.
ACCORDINGLY, OUR OFFICE WILL NOT OBJECT TO PAYMENT OF THE ADDITIONAL SUM AS ADMINISTRATIVELY RECOMMENDED.