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B-179036 1 (1973-09-24)

handle is hein.gao/gaobaadgs0001 and id is 1 raw text is: ;A- C- -n - 9 I. COMPTROLLER GENERAL OFTFIE UNITED STATE-i WAHInCITON, D.C..4W48 3417M9 September 25, 1973 Ko T, A, Evans, Cirillon Disbursing Officer Ohio RLver DiViulonp Cois of Bngirers Depzrtdznt of the oAry M0 Pa 1159 Cincinati, Ohio 4VI.I Dear We. Ivaus: hisi Sn rons to your lettor of Jw 23., 1973# with enc.oure., niqwoting an advance deolsion vtother the wzInl Elactrio Cara.irmy (us) Is entitled to price eaolation uadcr clause 43 (A~utmwnt of Prices for Labor and Matorial) of contract Not. D)A-4-058eeW2Z-66-1o5. The cJalm Is rolvted to contract poy itan vhich were delivered subseonuut to the spcified contract delivery date I this contxt, the question presented for ourc onridorution has reference t the proper rate or csoelation tdoE' tha clnuse applicable to the various late dliveries. Wo are advloed, hoover, thab the Govrnment did not exercise en rights under the contract dofault olnuso on account oi' the Int) deliveros. N exeus- ablo delays upplicable to thA ittu coyer by thti invoices have bn c?.eIdby (XE. W.cme with yw intar tatioa of amm deetions 31 Conp. Con. 565 (1955)) 38 C.Caa*Gn. 1326 (1959); and Det;4k9%17,parch 17t 1961, In our view, the cases stAnd for the propositio. that price escmlatiou Is to be computed on the basis 01' the rates in ntiact as of the contractuall quired delivery date, including excusable d )l0ys end reains conntant therattr. Price escalation for poriewJs of unxcuoed delay, based upon ratoi in effect oftter the reqtired delivery d:te, in not allcuable. The Mt.co is stated In 3 Cop. sn., upraat pe O567: gThe ener Aocotmting Office Ua consicstntly rfuseo&. to alow pice increase in cacso such am this except here the dae vts causd by the Goverrwent or otheivise was excusable wnder tle terms of the contract. The basis for our positionAn this regard in that ye perceive no valid roocon, Ltl lw or equity, e w ouiring the Oovermnnt to anwsa the burdea of prce omaroes occurring after the final date deliivry wt=14 hav been vade but for the cmtrontor' am fault or nacltie gnoe. To *qurs tls Governcnt tn ay iuch prioe Licmsen .A 1 1% (.i , I ' I.-' , I r * - - *,1 t 0 II K I * a 1' I ,I 9 All 1'44, *

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