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B-186817 1 (1976-09-17)

handle is hein.gao/gaobadcyy0001 and id is 1 raw text is: c THE COMPTROLLER GENERAL DECISION . ' OF THE UNITED STATES WASHINGTON, 0. C. 20548 FILE: B-186817 CATE: September 17, 1976 MATTER OF: The Farmington Manufacturing Company DIGEST: 1. Government is not liable to subcontractor for unanticipated increased costs since Government was not prime contractor and GAO has no jurisdiction to resolve issues between prime contrac- tor and its subcontractor. 2. Reporting claim to Congress under Meritorious Claims Act, 31 U.S.C. § 236,for relief by fixed-price Government subcontractor for unan- ticipated cost increases would not be justified because claim con- tains no elements of unusual legal liability or equity. The Farmington Manufacturing Company (Farmington) has requested review of our April 30, 1976, settlement which disallowed Farmington's claim for payment of excess costs incurred in manufacturing and supply- ing rotary tables to the Standard Tool and Die Company (Standard). The record discloses that Standard was a subcontractor for Lockheed Missiles and Space Company, Inc., which had been awarded Government contract No. N00030-74-C-0100, for the development and initial production of the Trident I (C-4) missile. After receipt of its contract, Standard issued its purchase orders to Farmington calling for the manufacture and delivery of three rotary tables. In the performance of this sub- contract, Farmington contends in its May 21, 1976, letter that it incurred additional costs in excess of .$100,000. Our disallowance of the claim was based on the fact that there was no privity of contract between Farmington and the Government and therefore our Office had no jurisdiction to consider the claim. In its request for review of the disallowance, Farmington contends that there was a direct relationship between the Government and Farmington since the Government was the ultimate user and Farmington was the builder of a product to meet the required specifications of the United States Naval Gage Laboratory in California. Farmington also contends that its firm qualifies for consideration under the Meritorious Claims Act, 31 U.S.C. § 236 (1970). -S

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