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B-206439 1 (1982-10-27)

handle is hein.gao/gaobadkrp0001 and id is 1 raw text is: QLL[R THE COMPTROLLER oENERAL DECISION . OF THE UNITED STATES <,. - WASHINGTON, o.C. 20548 FILE: B-206439 DATE:October 27, 1982 MATTER OF: Office of Technology Assessment-Waiver of claims provision DIGEST: GAO sees no legal objection to Office of Technology Assessment's including provision in certain research services contracts by which contractor waives all claims not presented within a certain time fixed in the provision. The Director of Contracts of the Office of Technology Assessment (OTA) has requested our opinion as to the validity and effect of a waiver of claims clause which OTA includes in certain contracts for research services. The clause provides that any cla-ims not filed by the contractor within 3 months of a contract's expiration date are waived. We have no objection to the inclusion of such a clause in OTA research service contracts. Specifically, the waiver of claims clause provides that: Monies reserved for payment under this contract shall be released to other purposes after three months from the expiration date stated or any ex- tension thereof. Claims not made before that time are waived. The suhmission notes that an alternative to inclusion of the clause is for OTA to send waiver letters to contractors for signature. This. alternative has proved to be ineffective, however, in that deobligation of funds conmitted to a parti- cular contract cannot be accomplished until the signed letter is returned to OTA, and thus when, as frequently occurs, con- tractors fail to sign and return the letters or delay several months before returning them, deobligation cannot be accom- plished promptly. According to OTA, the use of the waiver letters often results in the loss of funds earmarked for particular contracts, as well as creating a significant administrative cost. We have no objection to the Office of Technology Assessment's use of this provision. Contractual clauses limiting the period C a

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