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B-190150 1 (1978-10-03)

handle is hein.gao/gaobadgmo0001 and id is 1 raw text is: - HECOMCTROLLU' -PALt2 OIEISCN(i:? t OF THE UNITE;' . YES .zWAsHINGTL'vN. Dir .10540 FILE: B-190150 DATE: October 3, 1978 MATTER OF: California Meat Company-- Reconsideration DIGEST: lact that contractor terminated for default had no control over replacement contractor's efforts to deliver the goods, required that there be established a ma::imum period for which liquidated damages could be assessed against the terminated contractor, but pro- vides no further equitable basis for remit- ting damages witnin the agreed maximum period. California Meat Company (California) and the Secretary of Agriculture request recdnsideration of our decision in California Meat Company, B-190150, February 9, 1978, 78-1 CPD 112. In that decision we denied the agency's request for partial equita- bleiremission of liquidated damages assessed against California for delivery delinquency. The matter was submitted to GAO pursuant to 41 U.S.C. 5 256(a) (1970), which authorizes the Comptroller General, upon the recommendation of the head of any Feeral agency to remit the whole or any part of liquidated damages as- sessed for delay as in his discretion may be just and equitable. A contract was avarded to California on January 14, 1976, requiring delivery of frozen ground beef for the week of February 22, 1976. The contract-;was terminated by telegram dated February 11, 1976, because of the Government's summary withdrawal from California of Federal meat grading and acceptance services (based on' tie firm's alleged violations cf applicable regula- tions), and because of the firm's advice to the con- tracting officer of its inability to meet the delivery

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