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B-184827 1 (1975-12-09)

handle is hein.gao/gaobadcqm0001 and id is 1 raw text is: DECISION THE COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-184827 DATE: December 9, 1975 MATTER OF: Ohio Pipe, Valves & Fittings, Inc. DIGEST: 1. Where Government is required to obtain all pipe needed from contractor under requirements contract, second contract awarded at higher price to same contractor for pipe covered under requirements contract is void, since award of second contract would amount to modification of requirements contract without consideration passing to Government. 2. Where Government accepts goods delivered under contractor is entitled to payment for value to benefit conferred; however, payment is limited which Government would be unjustly enriched. void contract, Government of to amount by On September 5, 1973, the Defense Supply Agency (DSA) awarded contract No. DSA700-74-D-0009 to Ohio Pipe, Valves & Fittings, Inc. (Ohio). This contract was a one-year requirements contract calling for the delivery of various sizes of steel pipe, including FSN 4710- 00-162-1022, upon the issuance of delivery orders. The pipe was to be delivered to Oakland, California, and other specified destina- tions. The price varied from $0.5343 to $0.5709 per foot depending upon the place of delivery and the amount ordered. The contract contained a provision for price escalation not to exceed 10 percent. Apparently due to a steel shortage, Ohio was having difficulty in complying with the delivery dates. Subsequently, the delivery time (within 75 days of the date of the delivery order) was extended to 120 days from the date of the delivery order by modification No. P0001, dated November 14, 1973. Despite the extension, Ohio was unable to fulfill its obligations under the contract and was delinquent on a number of deliveries. The contracting officer decided not to issue further delivery orders under the contract. Instead, the contracting officer issued invita- tion for bids No. DSA700-74-B-2600 calling for delivery of 60,000 feet of -1022 pipe to Tracy, California. Ohio was the sole bidder - 1 -

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