International Telephone & Telegraph v. United States

453 F.2d 1283, 197 Ct. Cl. 11, 1972 U.S. Ct. Cl. LEXIS 201
CourtUnited States Court of Claims
DecidedJanuary 21, 1972
DocketNo. 147-70
StatusPublished
Cited by24 cases

This text of 453 F.2d 1283 (International Telephone & Telegraph v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Telephone & Telegraph v. United States, 453 F.2d 1283, 197 Ct. Cl. 11, 1972 U.S. Ct. Cl. LEXIS 201 (cc 1972).

Opinions

Skelton, Judge,

delivered the opinion of the court:

The facts in this case are not in dispute. They are set forth below as they appear in the plaintiff’s petition and in the decision of the Armed Services Board of Contract Appeals (Board), with some additions and changes.

Plaintiff, International Telephone and Telegraph, is a corporation duly organized and existing under and fey virtue of the laws of the State of Delaware, with principal place of business at New York City, New York. ITT Defense Communications is a Division of International Telephone and Telegraph and is located at Nutley, New Jersey. ITT Defense Communications is an administrative successor to ITT Fed[14]*14eral Laboratories which, executed and performed the subject contract.

Plaintiff brings this action under the general jurisdiction of this court (28 U.S.C. § 1491) for review of an administrative decision under both sections of the so-called Wunder-lich Act (41 U.S.C. §§ 321,322 (1964)).

On June 27, 1966, plaintiff was awarded Contract No. NObsr-96395 for the production of 1193 AN/PEC-11 Portable Transmitter Eeceivers at a unit price of $2,585 and 657 MK-706/PEC-41 Accessory Kits at a unit price of $750 plus certain maintenance and repair parts. The total estimated contract price was $3,580,956.96.

This contract was awarded under the Multi-Year Procurement alternative of the IFB. As required by ASPE 1-322.5, the contract contained “Limitation of Price and Contractor Obligations” and “Cancellation of Items” clauses. The Limitation of Price and Contractor Obligations clause provided in pertinent part as follows:

*****
* * * ^) Funds are available for performance of this contract in the amount specifically described in the Schedule, as available for contract performance. The amount of funds so described at the time of award is not considered sufficient for the contract performance required by and described in the Schedule for any Program Year other than the First Program Year. Upon availability to the Contracting Officer of additional funds sufficient for performance of the full requirements for the next succeeding Program Year, the Contracting Officer shall, not later than the date specified in the Schedule, unless a later date is agreed to by the parties, so notify the contractor in writing and the amount of funds described in the Schedule as available for contract performance shall be modified accordingly. This procedure shall apply for each successive Program Year. [Emphasis supplied.]
(d) The contractor is not obligated to incur costs for the performance required for any Program Year after the first unless and until he has been notified in writing by the Contracting Officer of an increase in availability of funds in accordance with paragraph (b) of this clause * * *. [Emphasis supplied.]

[15]*15The “Cancellation of Items” clause provided in paragraph (b):

As used herein, the term “cancellation” means that the Government is cancelling, pursuant to this clause, its Program Year requirements for items as set forth in the Schedule for all Program Years subsequent to that in which notice of cancellation is provided. Such cancellation shall occur only if, within the time period specified in the Schedule, or such further time as may be agreed to, the Contracting Officer (i) notifies the contractor that funds will not be available for contract performance for any subsequent Program Year; or (ii) fails to notify the contractor that funds have been made available for performance of the Program Year requirement for the succeeding Program Year.

Delivery was scheduled for each of four successive Fiscal or Program Years, beginning in Fiscal Year 1966, subject to the provisions set forth above.

The schedule referred to in the above-quoted paragraphs provided:

The clause entitled “Limitation of Price and Contractor Obligations” is modified to specify 15 December 1966 as the date by which the Contracting Officer shall notify the Contractor of the availability of funds for the Fiscal Year 1967 program; 15 August 1967 for the Fiscal Year 1968 program; and 15 August 1968 for the Fiscal Year 1969 program.

The schedule further provided:

The clause entitled “Cancellation of Items” is supplemented by specifying the following:
(a) The cancellation date referred to in paragraph (b) is 15 December 1966 for the Fiscal Years 1967, 1968 and 1969 program requirements, 15 August 1967 for the Fiscal Year 1968 and 1969 program requirements, and 15 August 1968 for the requirements of the 1969 program.

Defendant notified plaintiff of the availability of funds sufficient for the performance of the Fiscal Year 1967 requirements by sending Change Order (DD 1819), Modification No. 3, dated December 13,1966, and signed by the contracting officer, R. W. 'Campbell.

On July 7, 1967, responsibility for administration of the [16]*16contract was transferred from the Naval Ship Systems Command to the Naval Electronic Systems Command (NAV ELEX). Subsequently, the contract negotiator with NAV ELEX, who was responsible for ascertaining the availability of funds for the 1968 buy, learned that because one of the using activities no longer needed the contract items additional funds would have to be secured under another Navy project. Because of the paper work and delay in making these funds available, it was not until a few minutes after 4 p.m. on August 15, 1967, that the negotiator received release of the full amount necessary to cover the 1968 program year requirement.

In anticipation of their release, a written notification of availability of funds, addressed to plaintiff’s Nutley, New Jersey, office had been prepared for the signature of the contracting officer. Immediately upon receipt of the funds, the notification, which was in the form of an authorization for a teletype message, was 'signed by the contracting officer. This authorized transmission of the message to plaintiff. Immediately after signing, the contracting officer directed that the message be hand-delivered to the message center of NAV FT /FIX by the contract negotiator. The teletype message notifying plaintiff of the availability of funds for the 1968 ■buy was delivered from the contracting officer to the message center for transmission at 4:10 p.m. August 15, 1967.

Immediately upon receipt, the message center clerk took action to see that the message was transmitted in due course to plaintiff through the Naval Communications Center in Philadelphia.

Plaintiff maintains, at its offices in Nutley, New Jersey, a teletype machine which operates automatically twenty-four hours a day to receive incoming messages. Due to unaccounted for delays in transmission, the contracting officer’s written notification of availability of funds was not received in plaintiff’s offices until 6:50 a.m. on August 16, 1967. Since plaintiff’s teletype office was unmanned from 5 p.m. on August 15 to 8:15 a.m. on August 16, plaintiff could not have received notice in writing of the contents of any message transmitted during that time. Consequently, it was not until 8:15 a.m.

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Bluebook (online)
453 F.2d 1283, 197 Ct. Cl. 11, 1972 U.S. Ct. Cl. LEXIS 201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-telephone-telegraph-v-united-states-cc-1972.