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B-196285 1 (1979-10-17)

handle is hein.gao/gaobadhrg0001 and id is 1 raw text is: 


                       -- THE COMPTROLLER   GYEA
DECISION              .OF   T HE  UNITED-STATES
                  ~-                     0. .C. 20548


FILE: B-196285


MATTER


DIGEST:


DATE:   October 17, 1979


OF:   R.B.S., Inc.


Dispute regarding equitable price
adjustment must be pursued under
contract's Disputes clause proce-
dure and thus is not for considera-
tion by GAO.


     R.B.S., Inc., requests our assistance in securing
a price adjustment under contract No. DSA-76-D-0164
with the Defense Fuel Supply Center (DFSC). The
adjustment was first requested of DFSC by R.B.S.
approximately two years ago pursuant to clauses J28C
and J29 of the contract, which are entitled Economic
rice  Adjustment and Economic Price Adjustment/
Federal Coal Mine Health and Safety Act of 1969,
respectively.  The clauses provide for price adjust-
ment, where certain conditions are met, within a
reasonable  time after a request by the contractor;
R.B.S. is concerned that a reasonable time has passed
without any agreement between the parties.

     However, each of the cited clauses also provides
that the failure of the parties to agree to an adjust-
ment shall be deemed a dispute concerning a question
of fact within the meaning of the clause of this con-
tract entitled 'Disputes'. Although it is not clear
from the record presented by R.B.S. whether the firm
has as yet formally proceeded under the contract's
Disputes clause, it is well-established that both the
contractor and the Government are bound to follow and
exhaust the administrative procedure set out therein
for the resolution of disputes, see .Harry C. Partridge,
Jr. & Sons, Inc., B-191808, May 11, 1978, 78-1 CPD 366;
that procedure provides for a decision by the contract-
ing officer, with the contractor having the right of
appeal from the decision to the head of the agency
concerned.


IL

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