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B-237421 1 (1991-09-11)

handle is hein.gao/gaobadnzt0001 and id is 1 raw text is: Comptroller General ~of the United States Wa Jttou D,O, 20648 Decision Matter of: Army Corps of Engineers - Propriety of Liquidated Damages in Supervision and Administration Account Depositing File: Date: B-237421 September 11, 1991 DIGEST The portion of delayed performance liquidated damages that is attributable to increased supervision and administration (S&A) expenses may be reimbursed to the Corps of Engineers' S&A revolving fund. DECISION The disbursing officer for the United States Army Corps of Engineers, Fort Worth District, has collected $2,283,600 as liquidated damages for a contractor's delay in completing a military construction contract. The disbursing officer requests an advance decision on whether that portion of the liquidated damages attributable to increased supervision and administration (S&A) expenses incurred by the Corps may be used to reimburse the revolving fund available for such expenses. We conclude that the reimbursement would be proper. Irt 1986, a contract was awarded for the construction of a fuel cell shop at Kelly Air Force Base, Texas, under solicitation No. DACA63-86-B-0020. The Corps supervised and administered the contract. Although the scheduled contract completion date was October 6, 1987, the contractor did not complete the facility until July 1989, a delay of 660 days. The solicitation as issued contained a liquidated damages clause that established a liquidated damages rate of $1,060 per day for S&A expenses as provided for under Federal Acquisition Regulation § 12.203(b). Prior to bid opening, however, an amendment increased the rate to cover other expenses that would result from delay, such as storage of equipment at other facilities. The Corps believes that $669,600 of the $2,283,600 in liquidated da' ages (the amount representing liquidated damages for S&A expenses) should be returned to the S&A account, but asks whether this would be inconsistent with the views we expressed in 65 Comp. Gen. 838 (1986)4

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