[PCC Request for Remission of Liquidated Damages]

The Panama Canal Commission requested remission of liquidated damages assessed against a contractor for the installation of a fire protection system, contending that it erroneously included additional costs that were unforeseeable consequences of a performance delay in the contract's liquidated damage rate provision. GAO held that the contract's liquidated damages provision erroneously included costs that were unforeseeable consequences of a performance delay. Accordingly, the remission was allowed.