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B-183591 1 (1975-07-10)

handle is hein.gao/gaobadcga0001 and id is 1 raw text is: DECISION FILE: B-183591 MATTER OF: Kleen-Rite Corporation DIGEST: 1. Liquidated damages clause for nonperformance or inadequate performance of custodial services does not constitute penalty since damage assessment is reasonable in relation to losses contemplated. 2. There is adequate justification to provide for application of liquidated damages clause to instances of nonperformance and inadequate performance even though under prior contracts clause applied only to nonperformance, because both situations are undesirable and cost of correction may be just as expensive. Invitation for bids No. DAHC30-75-B-0059 was issued on March 17, 1975, by the United States Army, Military District of Washington Procurement Division for custodial services at Cameron Station, Alexandria, Virginia. Bid opening has been postponed because of a protest. On April 8, 1975, Kleen-Rite Corporation (Kleen-Rite) protested to our Office the MONETARY AD*STMENT FOR INADEQUATE PERFORMANCE clause as being punitive and unconscionable. The clause, with a portion of the table of adjustments, reads as follows: I - 1 - 0 THE COMPTROLLER GENERAL OF THE UNITED STATEB SWASHINGTON, O.C. 20548 DATE: July 10,1975

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