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B-191140 1 (1978-04-05)

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FILlH: B-191140                 DATE:  Apz'il 5, 1978

MATTER   OF:   DNH nevelopment corporation

DIGEST:


    Contractor, having mistakenly  failed to reserve
    claims against  the Government in general release,
    may nevertheless have  claims considered on merits
    since contracting  officer knew of contractor's
    active  interest in larger claims and prior to pay-
    ment was  informed of error by contractor.

    The United States  Coast Guard, on January 30, 1978,
requested an advapce decision  regarding the validity
of a release executed b'  D NHDevelopment Corporation
(DNH), unde: contract No,  SB0228(a)-76-C-090 (Contract
090).  By letier dated  February,8, 1978, DNH elected
to submit the matter  to our office for decision in lieu
of puisuing an appeal  to the board of contract appeals
under the disputes procedure.   The material facts are
not disputed.

    The Small Business Administration  (SBA) entered
into Contract No. DOTNCGl7-2249  wiTh the Coast Guard
on March 19, 1976, under  the provibions rf section 8(a)
of the Small Business Act,.15  U.S 2. § 637(a) (1970).
DNH wan awarded Contract  090 by tle SBA on April 1, 1976,
pursuant to the 8(a) subcontracting  program, a program
designed to assist  nall  business concerns owned and
controlled by socially or economically  disadvantaged
persons.  The contract was  for the construction of one
duplex family house  tid one fourplex family house at
Tok, Alaska,  for a total contract price of $522,065.
Construction was to begin within  60 days of receipt
of a notice to proceed and  work was to be completed

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