B-180174, JUL 24, 1974
Highlights
REQUEST FOR REMISSION OF LIQUIDATED DAMAGES ASSESSED BY AIR FORCE IS DENIED SINCE AIR FORCE'S REFUSAL TO RECOMMEND REMISSION PRECLUDES GAO UNDER 10 U.S.C. 2312 FROM REMITTING ALL OR PART OF SUCH DAMAGES. THIS REQUEST WAS DENIED IN A LETTER DATED NOVEMBER 8. THIS REQUEST WAS DENIED BY LETTER DATED OCTOBER 23. IS "ARBITRARY. IT IS APPARENT FROM THE STATUTE. THAT AN AGENCY'S FAVORABLE RECOMMENDATION FOR REMISSION IS A PREREQUISITE TO ANY ACTION BY THIS OFFICE. WE ARE UNABLE TO GRANT LASKO REMISSION OF ALL OR ANY PART OF THE LIQUIDATED DAMAGES ASSESSED.
B-180174, JUL 24, 1974
REQUEST FOR REMISSION OF LIQUIDATED DAMAGES ASSESSED BY AIR FORCE IS DENIED SINCE AIR FORCE'S REFUSAL TO RECOMMEND REMISSION PRECLUDES GAO UNDER 10 U.S.C. 2312 FROM REMITTING ALL OR PART OF SUCH DAMAGES.
TO LASKO METAL PRODUCTS, INCORPORATED:
LASKO METAL PRODUCTS, INCORPORATED (LASKO), REQUESTS THAT OUR OFFICE REMIT ALL OR PART OF LIQUIDATED DAMAGES IN THE AMOUNT OF $405, $575.55, ASSESSED BY THE AIR FORCE AGAINST IT UNDER CONTRACT NO. F42600-69-C 3171.
BY LETTER DATED APRIL 19, 1971, LASKO REQUESTED THAT THE AIR FORCE RECOMMEND THAT ALL OR A PORTION OF THE LIQUIDATED DAMAGES BE REMITTED. THIS REQUEST WAS DENIED IN A LETTER DATED NOVEMBER 8, 1972, FROM THE CONTRACTING OFFICER. ON JUNE 4, 1973, LASKO SUBMITTED TO THE AIR FORCE A REQUEST FOR RECONSIDERATION OF THE NOVEMBER 8 DECISION. THIS REQUEST WAS DENIED BY LETTER DATED OCTOBER 23, 1973, FROM THE CONTRACTING OFFICER. LETTER DATED NOVEMBER 27, 1973, COUNSEL FOR LASKO REQUESTED THAT OUR OFFICE REVIEW THE MATTER SINCE THE POSITION OF THE CONTRACTING OFFICER, IN COUNSEL'S VIEW, IS "ARBITRARY, CAPRICIOUS, UNREASONABLE, GROSSLY ERRONEOUS, AND NOT SUPPORTED BY SUBSTANTIAL EVIDENCE." THE AIR FORCE AGAIN REVIEWED THE MATTER IN RESPONSE TO OUR REQUEST AND AGAIN DECLINED TO RECOMMEND REMISSION.
AS COUNSEL HAS RECOGNIZED, OUR AUTHORITY TO REMIT LIQUIDATED DAMAGES RESTS SOLELY UPON 10 U.S.C. 2312, WHICH PROVIDES THAT UPON THE RECOMMENDATION OF THE HEAD OF AN AGENCY THE COMPTROLLER GENERAL MAY REMIT ALL OR PART, AS HE CONSIDERS JUST AND EQUITABLE, OF ANY LIQUIDATED DAMAGES ASSESSED FOR DELAY IN PERFORMING A CONTRACT MADE BY THE AGENCY. IT IS APPARENT FROM THE STATUTE, AND IT HAS CONSISTENTLY BEEN OUR VIEW, THAT AN AGENCY'S FAVORABLE RECOMMENDATION FOR REMISSION IS A PREREQUISITE TO ANY ACTION BY THIS OFFICE. B-162643, FEBRUARY 1, 1968; B-175180, MAY 11, 1972.
CONSEQUENTLY, WE ARE UNABLE TO GRANT LASKO REMISSION OF ALL OR ANY PART OF THE LIQUIDATED DAMAGES ASSESSED.