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B-187178 1 (1976-10-07)

handle is hein.gao/gaobadeez0001 and id is 1 raw text is: mm THE COMPTkOLLER UENERAL DICISION1 . .7. WTHE UNITED STATES 0VWABE.l-IINaTCN. D.c. 2U4S i hll FILE: B-187178 DOJTE: October 1976 MATTER OP: Me sro Machine Corpoiation DIGEST: Notwithstanding completion and acceptance of job order under Master Contract for Repair and Alteration of Vessels, contracting officer may set off teasonable estimate of cost of work remaining to be performed under warranty clause, where necessity for such wXrk became apparent prior to presentation for payment of cmnttactor's final invoice. 50 Comp. Gen. 263 (1970) distinguished. Metro Machine Coiporation (Metro) has filed a claim Ai this Office, requesting payment of $2,590 alleged to have been improperly withheld from final payment on Job Order No. 13 under Hastet Contract for Repcit and Alteration of Vessels, N00033-70-C-0032, with the Military Sealift Command (Navy). Metro aserts that the funds were withheld contrary to our decision in 50 'omp. Gen. 263 (1970). In that case we held that the Navy could not. withhold final payment under contract provisions substantially Identical to those involved here, pending expiration of the warranty period. In thet regard, we indicated that we were una.'qre of any general basis for ruling that an express warran .y in a contract excuses or suspends the obligation to make payment after a contractor has completed performance. We stated chat: 0 * * *when the Government accepts redelivery of the vessel without reservation it is acrinting the contractor's work under the inspection clause - .and is presumed to have exercised its rights to inspect that work. Consequently, we held that the Government acted improperly in refusing to complete final payment when the vessel upon which the work was performed was returned without reservation. -1- -q I A a

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