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B-180174 1 (1974-07-24)

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FILE:  B-180174                     [

MATTER OF-, Lasho etal Products,
                  Incorporated


D1IGEt


ET;  Request for remission of liquiduted
     damages assessed by Air Forqe is
     denied since Air Fbrce's refusal tc
     recommrnd remission precludots GAO
     inderI t0 hUP  2P12 from remitt4in


July 24, 1974


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           Sall or part of such damages.

     Lasko Metal Products, Inc rporated (Lsho), r quests that
our OffIce remit all or part o   iquidated         n the
amount of  $405,$575.55, assessec by the Air Fore against
it under contract No. F2600-69-C-3171.

     By letter dated April 19, 1971, Lasko regeqsted that the
Air Force recommend that all or a portion 6-ftheTIuidated
damages be remitted., This request was denied in a letter
dated Noveber  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 re-
quest was denied by letter dated October 23, 1973, from
the contracting officer.  By letter dated November 27, 1973,
counsel for Lasko reo'aested that our Office review the
matter since the position of the contractingr officer, in
counsel's view, is arbitrtary, capricious, unreasonable,
grossly erroneous, and not supported by substantiel 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 thc' recaznndation of the head of an
agency the Comptroller %eneral may remit all or part, as he
considers just and equl sable, 0of any liquidated damages
assesse& for delay in performing a contract made by the
agency.  It in apparent from the statute, and it has
consistently been our view, that an agency's favorable recom-
mendation for remission is a prerequisite to any action by
this Office.   -162643, February 1, 1968; B-175180, May 11,
1972.


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