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B-200862 1 (1981-02-10)

handle is hein.gao/gaobadjch0001 and id is 1 raw text is: 


      169


                  5~/4  \' THE COMPTROLLER GENERAL
    DECISION      ..       .OF THE UNITED STATES
                  .WASHINGTON. 0. C. 2054S




    FILE:   B-200862              OATE: February 10, 1981

    MATTER OF: S. Livingston & Son, Inc.


    DIGEST:

    Contractor's damages for breach of contract
    are limited to recovery allowable under
    Termination for Convenience clause where
t.4< Government failed to order specified minimum
     quantity under contrac


     S. Livingston & Son, Inc. romplains that the National
Gallery of Art (Gallery) did not meet its contractual
obligation under contract NGA-401 with the firm to supply
an estimated quantity of 2,000 shirts during fiscal year
1980.The contract reserved to the Government the right
to vary the quantities ordered * * * by a plus or
minus 20 percent of the quantity listed [2,000]. The
contractor asserts that the agency did not order the
minimum amount contemplated in the contract.

     The contract in effect called for at minimum quantity
of 1600 shirts to be ordered by the Government during the
life of the contract. This figure Iproved to be an overesti-
mation of the-needs of the Galler %and only 408 shirts
were ordered. Given the variation -fn size requirements
from year to 7-ear the Gallery contends that it could not
purchase the additional shirts and stockpile them.

     _Included in the contract was a Termination for Con-
venience clause providing that the contractin  officer,
by written notice, may terminate this contract, in whole
or in part, when it is in the best interest of the Govern-
ment. The contracting officer did not, however, terminate
the contract as he could have_. rionetheless,Lsince the
Government's lack of any need for these supplies was a
justifiable cause for termination, the termination clause

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