B-58690, B-89349, MAR. 1, 1960
Highlights
TO REPUBLIC LUMBER COMPANY: REFERENCE IS MADE TO YOUR LETTER OF JANUARY 28. IN ORDER THAT YOU SAY BE FULLY ADVISED IN THIS MATTER IT IS CONSIDERED ADVISABLE THAT WE SET FORTH HEREIN IN SOME DETAIL THE FACTS RELATING TO THE ACTION TAKEN BY OUR OFFICE. - WERE ALLOWED AND APPLIED AGAINST YOUR TOTAL INDEBTEDNESS IN THE AMOUNT OF $39. A COPY OF WHICH WAS TRANSMITTED TO YOU. THERE WERE DISALLOWED ITEMS AGGREGATING $8. YOU WERE CERTIFIED TO BE INDEBTED TO THE UNITED STATES IN THE NET AMOUNT OF $1. OUR CLAIMS DIVISION TRANSMITTED TO YOU A COPY OF THE SETTLEMENT AND THUS YOU ARE ADVISED AS TO THE BASIS FOR THE GOVERNMENT'S CLAIM. OUR RECORDS INDICATE ALSO THAT A COPY OF THE SETTLEMENT WAS FORWARDED TO YOU AT THE TIME OF ISSUANCE.
B-58690, B-89349, MAR. 1, 1960
TO REPUBLIC LUMBER COMPANY:
REFERENCE IS MADE TO YOUR LETTER OF JANUARY 28, 1960, REQUESTING THAT WE RECONSIDER THE SETTLEMENT ACTION TAKEN BY OUR CLAIMS DIVISION IN EFFECTING COLLECTION OF YOUR INDEBTEDNESS TO THE UNITED STATES, AS MORE FULLY HEREINAFTER SET FORTH. IN CONNECTION WITH THE MATTER, YOU MADE REFERENCE TO SETTLEMENT DATED APRIL 12, 1949, CERTIFICATE NO. 1736495, SHOWING A BALANCE OF $11,472.45 TO BE DUE THE UNITED STATES, AND THE CERTIFICATE OF SETTLEMENT NO. US-14694, DATED MARCH 1, 1946, BY WHICH OUR CLAIMS DIVISION CERTIFIED YOU TO BE INDEBTED TO THE UNITED STATES IN THE NET AMOUNT OF $1,108.57.
IN ORDER THAT YOU SAY BE FULLY ADVISED IN THIS MATTER IT IS CONSIDERED ADVISABLE THAT WE SET FORTH HEREIN IN SOME DETAIL THE FACTS RELATING TO THE ACTION TAKEN BY OUR OFFICE. UNDER DATE OF FEBRUARY 25, 1946, THE PROCUREMENT DIVISION, TREASURY DEPARTMENT, TRANSMITTED TO OUT CLAIMS DIVISION FOR DIRECT SETTLEMENT THREE VOUCHERS IN YOUR FAVOR FOR THE SUMS OF $6,838.86, $6,260.49 AND $23,530.92, REPRESENTING AMOUNTS REPORTED TO BE DUE FOR LUMBER FURNISHED UNDER CONTRACTS NOS. DA-TPS-16891, DA-TPS- 29313, AND DA-TPS-30779, RESPECTIVELY. BY THE SETTLEMENT OF APRIL 12, 1949, THE SUMS OF $6,132.36, $4,512.88, AND $17,175.34, RESPECTIVELY--- A TOTAL OF $27,820.58--- WERE ALLOWED AND APPLIED AGAINST YOUR TOTAL INDEBTEDNESS IN THE AMOUNT OF $39,293.03, AS EXPLAINED IN THE SETTLEMENT, A COPY OF WHICH WAS TRANSMITTED TO YOU. OF THE TOTAL OF $36,630.27, THERE WERE DISALLOWED ITEMS AGGREGATING $8,809.69 FOR THE REASONS SET FORTH IN THE SETTLEMENT. SUBTRACTING THE AMOUNT OF THE ALLOWED ITEMS--- $27,820.58 --- FROM THE REPORTED INDEBTEDNESS IN THE AMOUNT OF $39,293.03 LEAVES A NET BALANCE OF $11,472.45 DUE THE UNITED STATES. AS PREVIOUSLY INDICATED, BY CERTIFICATE OF SETTLEMENT DATED MARCH 1, 1946, YOU WERE CERTIFIED TO BE INDEBTED TO THE UNITED STATES IN THE NET AMOUNT OF $1,108.57, REPRESENTING THE EXCESS COSTS INCURRED BY THE GOVERNMENT BY REASON OF YOUR FAILURE TO FURNISH A QUANTITY OF LUMBER TO THE WAR DEPARTMENT IN ACCORDANCE WITH THE TERMS OF A CONTRACT CONSISTING OF YOUR INFORMAL BID DATED APRIL 21, 1942, AND ACCEPTANCE THEREOF BY PURCHASE ORDER NO. 10131, DATED THE SAME DAY. UNDER DATE OF DECEMBER 30, 1959, OUR CLAIMS DIVISION TRANSMITTED TO YOU A COPY OF THE SETTLEMENT AND THUS YOU ARE ADVISED AS TO THE BASIS FOR THE GOVERNMENT'S CLAIM. OUR RECORDS INDICATE ALSO THAT A COPY OF THE SETTLEMENT WAS FORWARDED TO YOU AT THE TIME OF ISSUANCE.
WITH OUR LETTER OF NOVEMBER 28, 1955, B-58690/B-89349, WE TRANSMITTED TO YOU COPIES OF THE SUMMARIZATION SHEETS SHOWING THE MANNER IN WHICH OUR CLAIMS DIVISION DETERMINED THE SUM OF $39,293.03 TO BE DUE THE UNITED STATES. IN THAT LETTER WE ADVISED YOU, IN EFFECT, THAT ANY FURTHER ACTION IN THIS MATTER BY OUR OFFICE MUST BE PREDICATED UPON THE SUBMISSION BY YOU OF ADDITIONAL EVIDENCE OR INFORMATION CLEARLY SHOWING THE USE, IN THE AUDIT BY OUR OFFICE, OF INAPPLICABLE OPA CEILING PRICES, OR THAT THERE WERE NOT PROPERLY CONSIDERED CONTRACT AMENDMENTS, DEDUCTIONS FOR SHORTAGES, OFF GRADE AND DUTY LUMBER,ETC. IN YOUR LETTER OF JANUARY 28, 1960, YOU DID NOT UNDERTAKE TO SHOW WHEREIN THE ACTION TAKEN BY OUR OFFICE WAS IN ERROR- - YOU SIMPLY EXPRESSED YOUR DISAGREEMENT WITH OUR ACTION AND STATED THAT YOU INTENDED TO PURSUE YOUR CLAIM ON THE SETTLEMENT DATED APRIL 12, 1949. ALSO, YOU INSISTED THAT YOU SHOULD BE PAID THE SUM OF $1,114.01, REFERRED TO IN THE SETTLEMENT OF MARCH 1, 1946, SINCE AS STATED BY YOU "THE PRICES SHOWN ON THE CONTRACT WITH US WERE THE MAXIMUM OPA CEILING PRICES.' BY REFERENCE TO THE SETTLEMENT OF MARCH 1, 1946, YOU WILL NOTE THAT THE AMOUNT OF $1,108.57, THEREIN CERTIFIED TO BE DUE THE UNITED STATES, REPRESENTS EXCESS COSTS ARISING OUT OF YOUR DEFAULT UNDER THE CONTRACT INVOLVED. "OPA CEILING PRICES" APPEAR NOT TO HAVE BEEN A FACTOR IN THE DETERMINATION OF THE INDEBTEDNESS. BY REFERENCE TO THE CERTIFICATE OF INDEBTEDNESS TRANSMITTED WITH THE LETTER OF DECEMBER 30, 1959, YOU WILL NOTE THAT THE REPURCHASE PRICE OF LUMBER CHARGED AGAINST YOUR ACCOUNT WERE AT OPA CEILING PRICES OR LESS.
THE ACTION TAKEN BY OUR CLAIMS DIVISION IN THIS CASE MAY BE SUMMARIZED AS FOLLOWS:
TABLE
INDEBTEDNESS
SETTLEMENT DATED MARCH 1, 1946 $ 1,108.57
SETTLEMENT DATED MARCH 12, 1949 11,472.45
TOTAL INDEBTEDNESS $12,581.02
CREDITS
SETTLEMENT DATED FEBRUARY 17, 1953
CERTIFICATE NO. 2111800 $ 7,580.41
SETTLEMENT DATED FEBRUARY 17, 1953
CERTIFICATE NO. 2111801 200.00
SETTLEMENT DATED FEBRUARY 17, 1953
CERTIFICATE NO. 2111802 1,000.00
SETTLEMENT DATED APRIL 24, 1953
CERTIFICATE NO. 2135164 25.92
SETTLEMENT DATED APRIL 24, 1953
CERTIFICATE NO. 2135165 200.00
SETTLEMENT DATED APRIL 24, 1953
CERTIFICATE NO. 2135166 756.20
SETTLEMENT DATED OCTOBER 8, 1953
CERTIFICATE NO. 2184006 300.00
(COPIES OF THE ABOVE-INDICATED
SETTLEMENT WERE TRANSMITTED TO
YOU AT THE DATE OF ISSUANCE.)
SET-OFF DATED AUGUST 13, 1959 $ 1,371.96
SET-OFF DATED NOVEMBER 23, 1959 37.96
SET-OFF DATED NOVEMBER 27, 1959 1,108.57
TOTAL$12,581.02
WE HAVE HERETOFORE FULLY ADVISED YOU AS TO THE BASIS OF THE GOVERNMENT'S CLAIMS AND SINCE THERE IS NOTHING CONTAINED IN YOUR LETTER OF JANUARY 28, 1960, WHICH WOULD JUSTIFY US IN MAKING ANY ALLOWANCES IN THIS CASE, THE SETTLEMENT ACTION PREVIOUSLY TAKEN IS SUSTAINED.