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B-190659 1 (1978-10-23)

handle is hein.gao/gaobadgmv0001 and id is 1 raw text is: :* .rH COMPTROLLER GENERAL 07 DECIUION O .r THU UNITED BTATUE VWAB HINOTON. D.C. RDe4B PILE: B-190659 DATE0ctober 23, 1978 MATTER OF: Pederal Data Corporation DIGEST: 1. Where there are no disputed facts involved in claim--concerning question of law under specific GAO precedent--and claimant has not objected to GAO deciding claim, but instead has submitted argument in support of its position on merits of claim, GAO will review claim rather than returning for processing under Disputes clause of contract. 2. Real effect of separate charges provision in contract was to~force contrabting agency to pur- * chase requiremerits from contr'actor for successive fiscal years or 4to pay damages for failure to do so. In so purporting to obliaate Government, test whether charges are proper under funding laws depends on reasonablenesa of cLarges. 3. If separate charges (plus othcr stipulated con- tract payment) art unrewsonable--more than lowest cost of scpply or servicec otherwise obtainable for bona fide needs of 'particular fiscal year-- charge cannot be &onsidered to relate to current fiscal year need; therefore, restrictions in funding laws ara violated. Under further GAO analysis, separate'charges scheme is shown to violate funding laws' restrictions. 4: Separate chargesNprovision was void from beginning of contract and, therefore, it is irrelevant as to which year discontinuance ac tually took place.o as to give rise to separate charges claim. ,Because of conclusion, i,t is unnecessary to consider whether payment of claim would also he cdntrary to limits of recovery set forth in contract's Termination for Convenience clause. II

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