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B-185655 1 (1977-02-07)

handle is hein.gao/gaobadejm0001 and id is 1 raw text is: 




                                                                   Aairev Gbager
                                        .tFee. I

                                            TH   C@  MPT    LLWS     UNAL
   -**          OUCION                      *P   THU    tPC1flP     STATUS
                                            wasUIN0e        4. 0.C.   Msm



                PILEoATs: e                                       7 11825

  )            MATTR     OF:     COnsoidated Diesel  lectric Company




             1.  No bests Is Sam -to relax. cotrtfgtto rebue contractor
                 for gaeral, and' a istrative  expemses a  profit applicable
                 to moist-   -CFederal Exise Tax ,(FIT) contractor vs required
                 to pay'tur=S  Peirfoxuance of contract. -Contract's tuna
                     claue povidd tat if ;,writta rulaing took effect after
                 contract date rsulting in contractor, b ivrquired Ito pay
                 VET, contract' price 'culd be Increased by mist of FIT-and
                     thi L~ tt L fct occurred.  Tkrtr. issue presented
                 does got involve, reformation, but tethewr contractor has
                 valid claim =ider terms of 'coatravt as wVittan.
             2.  Contractor's claim  ah  nraly         b  resolved through
                 appeal 'to Armed Seivicea board of Contract' 4pala (ASSCA)
                 Jmder contract disputes clause ile properly for consideration.
                 if-contractor elect. to eubmit claim to GAO In lieu of pur-
                 2  ng appeal to ASICA, ad no material factu are disputed.

             3.  Clim  Inovn               .- locontractormd! i'title-
                          umutto aneal and J~iiatatieiexpnses'and !profit on
                  sotit 'of rlTederal4 £xziue 'Tax Q(Ffl)id duflug contraict:
                  perfokmanc'la udenied. Invitaion I or bide', utatimant'itat
                  FET was ineppiatile is ncyiwda       eaigeffectivu'neua
                  of. contract's'tuaiie clause (Af1 7-103.10(a)), and where
                  contract Is specific as to price adjustm~ent for changes in
                  tax circeatmees, adjustmentisL to be masde as parties up.-
                  cifically provided foL. Contract'sa changes clause appear.
                  Inapplicable and no reason Is. an why taxes clause provides
                  basis for recovery of costs and profit clalmuid.

                  This, daclsion Inovsa  .clats fildL with our, of fice -by~
                       Coeslidaed DeselElecric  oq~'y (C~g),a Divisio  ofCdd
C6 Cpwrtifi             iconn~ct  on witl_ iiis contract No. MAZO7-74-C-0134
             witS th UieStates,   AM   Tank-Autovmtivea Comd.   the claim Is
             for gSeneral and'administrctiv. (04A) expenses ad profit on an
               aat which CDZC states* It would have included in iLts bid to cover
             Federal Excise'Tax (FIT), but for the Army'sa misrepresentation in
             the invitation for bid. (IFB) that FPT was inapplicable.
                       DIGE-T-








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