and David Rose, prime contractor; further that he had been notified by the subcontractor that he, Rickman, intended to discontinue all operations when he had finished all shirts which had been cut. The basis for the above statement was that he would not continue without an understanding with David Rose (Bo-Jack), prime contractor. The letter of October 6, 1948, referred to in the above Finding of Fact, followed. On October 8, 1948 Sylvania wrote the Quartermaster Corps that he had stopped working on the Poplin Khaki Shirts under the contract on which it had been working as subcontractor for Bo-Jack, alleging that Bo-Jack had violated its contract, and requested immediate withdrawal of Government property from the plant on the ground that it would be occupied within a week or ten days by new tenants. On 15 October 1948 the Contracting Officer for the Army wrote Bo-Jack demanding that it take steps to complete its contract. The inspection report for the week of October 15, 1948 revealed only 14 completed shirts on hand. On October 29, 1948 Bo-Jack answered the letter of October 15th requesting permission to complete the contract in one of its other plants or at a regular contract plant, but did nothing further in the matter. On 30 November 1948 the Contracting Officer terminated the right to deliver the further balance due under the contract. This letter contained 'findings of fact' in accordance with the contract provision and no appeal was taken therefrom. On December 1, 1948 the defendant Employers was notified of the termination. On 25 July 1949 claim was made against Bo-Jack under the Delays-Liquidated Damages Clause and on 18 August 1949 claim was made against the Employers for damages under the contract because of the default of Bo-Jack. Upon refusal of Bo-Jack and Employers to pay, suit was instituted on January 5, 1953.
20. As a result of the demand of Sylvania that the Government remove its cloth from its plant, the Quartermaster Corps made provisions to and promptly removed the government-owned cloth from the Montgomery plant of Sylvania to the Quartermaster Depot in Philadelphia within a few days after the demand was received.
21. The Government advertised for bids for that part of the contract terminated on October 6, 1948, and on December 10, 1948 relet this portion of the contract to Southland Mfg. Co. of North Carolina; deliveries to be completed by the end of February, 1949.
22. The Government also advertised for bids on the completion of the remaining shirts, 83,776 in number, terminated November 30, 1948, and on December 29, 1948 relet the manufacturing of these shirts to Raycord, Inc. of North Carolina; deliveries to be completed by the end of March, 1949.
23. There being no contravening evidence, the Court finds that the Government acted with reasonable promptitude in the reletting of these contracts.
24. Failure to complete the contract was due to the combined fault of Bo-Jack and Sylvania.
25. The Government performed all duties required under the contract and in nowise interferred with the completion of the contract by Bo-Jack, prime contractor.
26. The Delays-Liquidated Damages Clause of the contract provided a reasonable method of calculating damages and the Court finds that the rate of one-fifth of 1% of the unit price per day for delay in delivery constitutes liquidated damages, and not a penalty.
27. Bo-Jack, prime contractor, defaulted in the delivery of 122,452 shirts, later supplied by Southland and Raycord.
28. The following chart sets forth in detail the quantities, periods of delay, number of days, unit price, and the calculated liquidated damages to the Government, together with credits due Bo-Jack as a result of savings and liquidated damages collected from Southland and Raycord.
of 1% of the
Period of delay price of each
Mfg. From date To date of No. of Unit unit for each
Co. Quantity due delivery days Price day's DELAY
S 18,564 9-30-48 1-31-49 123 $0.749 $3,420.49
R 11,330 9-30-48 2-10-49 133 $0.749 2,257.32
R 5,170 10-31-48 2-10-49 102 $0.749 789.96
S 15 10-31-48 2-16-49 108 $0.749 2.43
R 4,500 10-31-48 2-22-49 114 $0.749 768.47
S&R 21,226 10-31-48 2-28-49 120 $0.749 3,815.58
S&R 17,871 11-30-48 2-28-49 90 $0.749 2,409.37
R 500 11-30-48 3-14-49 104 $0.749 77.90
R 9,600 11-30-48 3-18-49 108 $0.749 1,553.13
R 2,940 11-30-48 3-25-49 115 $0.749 506.47
R 6,960 12-31-48 3-25-49 84 $0.749 875.79
R 23,776 12-31-48 3-31-49 90 $0.749 3,205.48
To this total, the following credits are to be applied:
(A) Withheld on DO Voucher No. 105840, Nov. 1949 $1,981.27
(B) Liquidated damages collected from Raycord and Southland 1,003.49
(C) Saving to Government from Raycord & Southland contracts 1,395.00
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