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B-184862 1 (1975-09-25)

handle is hein.gao/gaobadcmq0001 and id is 1 raw text is: 

                     0 ,LER .
                             THE   COMPTROLLER GENERAL
 01CISION        .         . OF   THE    UNITED       STATES
                              WASHINGTON, D.C. 20548




 FILE:  B-184862                    DATE:   September 25, 1975

 MATTER   OF:    F. Schwartz


 DIGEST:


     Allegation by contractor regarding validity of notices
     of default upon which liquidated damages were assessed,
     is matter for resolution by the contracting parties under
     the contractual Disputes procedure and is not for considera-
     tion by GAO.


     F. Schwartz in a letter to our Office disputes the validity
of two notices of default issued by the Defense Supply Agency's
Defense Property Disposal Region Office, Ogden, Utah, upon which
the contractor was assessed liquidated damages in the amount of
20 percent of the price of each of his two contracts (contract Nos.
41-5492-091 and 41-5525-026).

     F. Schwartz challenges the validity of said notices of default
on the ground that they were not properly served. Specifically,
the contractor alleges that while both notices were sent by
certified mail, return receipt requested, neither notice was
delivered to or signed by him, but was in fact delivered to a
third person not identified on the face of the envelope.

     The propriety of a default termination must be resolved
by the contracting parties pursuant to the Disputes clause of
the contract and is not a matter for resolution by our Office.
Ampex Corporation, 53 Comp. Gen. 572(1974), 74-1 CPD 58; Dun-Well
Janitorial Co., Inc., B-183145, February 25, 1975, 75-1 CPD 114.
Further, any question F. Schwartz may have regarding the propriety
of the assessmeht of liquidated damages, following its default
also is a matter for resolution under the Disputes procedure.

     Accordingly, we are unable to take any action on this matter
and are closing our file.




                      Deputy Comptroller Genera0'
                             of the United States


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