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B-191493 1 (1978-04-05)

handle is hein.gao/gaobadtka0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 B-191493 APR 5 1978 The Honorable Peter W. Rodino, Jr. Chairman, Committee on the Judiciary House of Representatives Dear Mr. Chairman: By letter of March 17, 1978, you transmitted copies of H.R. 9072, 95th Congress, lst session, entitled A Bill for the relief of the Kurz and Root Company, Appleton, Wisconsin, and requested our views on the proposed legislation. The bill would authorize the Secretary of the Treasury to pay $501,472 to Kurz and Root Company, in full settlement of all claims of such company against the United States for losses incurred as the result of improper delay in payment of sums owed by the United States pursuant to a settlement agreement between such company and the United States Marine Corps. We have no firsthand knowledge of the relevant facts, and no claims relating to the contract have been filed in our Office. However, it appears that the bill would reimburse Kurz and Root for the interest and other costs it incurred during the time period when the settlement agreement was made by the contract- ing officer in December 1970 and the agreement was held valid by the Armed Services Board of Contract Appeals (ASBCA) on March 18, 1974 (ASBCA 17146, 74-1 BCA 10,543) . We do not recommend favorable consideration of the proposed bill since it has been consistently held by our Office, the ASBCA and the courts that a con- tractor is not entitled to interest for delay in paying a contract claim ( , B-187877,WApril 14,.. 1977, 77-1 CPD 325; Appeal or uneves Construction Co..r/ ?ASBCA 15239, 71-2 8BQA 8937 (1971);! and EcnmyPlumbi & Heating Co., Inc.)rv. United States, 197 Ct. Cl. 839, 470 F.2d 585 (1972)), absent a contract provision permitting such payment, or unless payment is specifically directed by statute, and passage of this private legisla- tion would accord preferential treatment-not available to other contractors similarly situated. , *.. . ..:.. ..... . .

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