B-122386, JUL. 26, 1955
Highlights
TRUSTEE: REFERENCE IS MADE TO YOUR ATTORNEYS' LETTER OF JUNE 29. WE DO NOT HAVE A COPY OF THE LETTER DATED JUNE 7. WHICH IS REFERRED TO IN YOUR ATTORNEYS' LETTER. IT IS UNDERSTOOD THAT THE PURPOSE OF THE LETTER OF JUNE 29 IS TO OBJECT TO THE SCOPE OF THE AUDIT AND REVIEW OF YOUR CLAIM CONTEMPLATED BY THE DEPARTMENT OF THE ARMY PURSUANT TO OUR REQUEST OF APRIL 27. ALTHOUGH IN OUR REQUEST NO REFERENCE WAS MADE TO A FURTHER REPORT ON MATTERS OTHER THAN THE PROPRIETY OF THE AMOUNTS CLAIMED AND CREDITS WHICH MAY BE DUE THE GOVERNMENT. SINCE THERE WOULD BE FOR ALLOWANCE IN ANY EVENT ONLY SUCH EXPENSES AS WERE NECESSARILY AND PROPERLY INCURRED IN ACCORDANCE WITH THE CONTRACT PROVISIONS.
B-122386, JUL. 26, 1955
TO MR. CHESTER H. CLARKE, TRUSTEE:
REFERENCE IS MADE TO YOUR ATTORNEYS' LETTER OF JUNE 29, 1955, CONCERNING YOUR PENDING CLAIM UNDER CONTRACT NO. DA-92-320-FEC-11 WITH THE DEPARTMENT OF THE ARMY.
WE DO NOT HAVE A COPY OF THE LETTER DATED JUNE 7, 1955, FROM GENERAL HAUCK TO SENATOR BARRETT, WHICH IS REFERRED TO IN YOUR ATTORNEYS' LETTER; HOWEVER, IT IS UNDERSTOOD THAT THE PURPOSE OF THE LETTER OF JUNE 29 IS TO OBJECT TO THE SCOPE OF THE AUDIT AND REVIEW OF YOUR CLAIM CONTEMPLATED BY THE DEPARTMENT OF THE ARMY PURSUANT TO OUR REQUEST OF APRIL 27, 1955, FOR A DETAILED REPORT ON THE ITEMS OF COSTS AND EXPENSES CLAIMED BY YOU.
ALTHOUGH IN OUR REQUEST NO REFERENCE WAS MADE TO A FURTHER REPORT ON MATTERS OTHER THAN THE PROPRIETY OF THE AMOUNTS CLAIMED AND CREDITS WHICH MAY BE DUE THE GOVERNMENT, WE FEEL THAT A COMPLETE AUDIT REPORT SHOULD INCLUDE MORE THAN A MERE VERIFICATION OF THE AMOUNTS EXPENDED, SINCE THERE WOULD BE FOR ALLOWANCE IN ANY EVENT ONLY SUCH EXPENSES AS WERE NECESSARILY AND PROPERLY INCURRED IN ACCORDANCE WITH THE CONTRACT PROVISIONS. THEREFORE DO NOT FEEL THAT WE SHOULD ATTEMPT TO RESTRICT THE SCOPE OF THE ARMY REPORT, ALTHOUGH IN OUR CONSIDERATION OF THE MATTER WE WOULD BE BOUND BY THE DETERMINATION OF THE BOARD OF CONTRACT APPEALS EXCEPT AS PROVIDED BY PUBLIC LAW 356, APPROVED MAY 11, 1954, 68 STAT. 81. SEE NORTHROP AIRCRAFT, INC. V. THE UNITED STATES, C.CLS. NO. 527-53, JANUARY 11, 1955, 127 F.SUPP. 597. ..END :