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B-228262 1 (1988-01-12)

handle is hein.gao/gaobadmyy0001 and id is 1 raw text is: The Comptroller General of the United States Washington, D.C. 20548 Decision Matterof: Department of the Interior--Request for Advance Decision File: B-228262 Date: January 12, 1988 DIGEST 1. The Department of the Interior is authorized to pay a contract line item for bonds and insurance that is in excess of the cost of the bonds and insurance, where payment of the amount for that item is consistent with the language of the contract and the intent of the parties. 2. Where the language in a contract is clear and unam- biguous, contractual terms will be given their usual and ordinary meaning. 3. Where the contracting officer determines that a mathe- matically unbalanced bid is not materially unbalanced because award will result in the lowest overall cost to the government, and a contract is awarded on that basis, the government is obligated to pay the contractor in accordance with the terms of the contract. DECISION The Bureau of Reclamation of the U.S. Department of the Interior requests an advance decision on whether the Bureau is authorized to pay a contractor the bid amount in excess of the premiums paid under a lump-sum bid for bonds and insurance based on a clause in the contract which provides for said payment. We hold that the Bureau is authorized to pay the claim. Ball, Ball & Brosamer (BBB) was awarded an indefinite quantity contract under solicitation No. 6-SI-30-04800 for Central Arizona Project Aqueduct repairs on September 30, 1986. The 1-year contract contained a guaranteed minimum of $100,000 for work performed and an option to extend the OL14 035

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