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Claim for Contract Price Adjustment

B-200534 Oct 15, 1980
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Highlights

A firm submitted a claim under contracts awarded by the Air Force to provide parts for vehicles for use at Rickenbacker Air Force Base. The firm contended that the Air Force agreed originally that a severe reduction in the vehicle fleet was outside the scope and intent of the original contracts, and a reduction in the discounts structure to mitigate the firm's overhead losses was appropriate. The Air Force notified the firm that a reduction in the vehicle fleet was contemplated, and thus the scope of the contracts was being reduced. The firm submitted a claim to mitigate the overhead losses sustained by the severe reduction of vehicles. The Air Force notified the firm that no adjustments could be made as the provisions of the contracts did not allow for any. The firm asked for further consideration of its claim and filed a claim with GAO contending that the Air Force had initially agreed with a reduction in the discounts structure, as the reduction in the vehicle fleet was extremely severe and was outside the scope and intent of the original contracts. This claim is not a proper subject for review by GAO. The questions raised are normally resolved under the procedures of the contract's Disputes Clause mechanism and should be processed under the disputes procedures provided for in the contracts.

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