A-83230, MARCH 3, 1937, 16 COMP. GEN. 805

A-83230: Mar 3, 1937

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- AND AN AFFIDAVIT SHOWING WHETHER ANY SUCH CHANGES OTHER THAN THOSE INVOLVED IN THE CLAIM WERE EFFECTED BETWEEN THE OPENING OF THE BIDS AND THE DATES OF COAL DELIVERIES. WAS PRODUCED. THE WAGES OF THE MINERS AT OUR MINES WERE INCREASED. UNDER THE NEW INSTRUCTIONS TO BIDDERS WE ARE TO FILE CLAIM WITH THE GOVERNMENT. MINES PRICE MULTIPLIED BY A PERCENTAGE FACTOR OF 60 PERCENT AND THIS FACTOR MULTIPLIED BY THE PERCENTAGE OF INCREASE IN THE WAGE RATE OF THE PREDOMINANT WAGE RATE CLASS OF OUR EMPLOYEES AND INASMUCH AS THE VARIOUS GOVERNMENT AGENCIES THAT WE ARE SHIPPING COAL TO DO NOT HAVE THE AUTHORITY TO PAY THIS WAGE INCREASE. WILL HAVE TO FILE A CLAIM. WHICH WILL HAVE TO BE APPROVED BY THE GENERAL ACCOUNTING OFFICE.

A-83230, MARCH 3, 1937, 16 COMP. GEN. 805

CONTRACTS - COAL PURCHASES - PRICE ADJUSTMENTS BECAUSE OF WAGE SCALE CHANGES CLAIMS UNDER COAL CONTRACTS PROVIDING A MATHEMATICAL PERCENTAGE FORMULA FOR DETERMINATION OF ADJUSTMENTS IN CONTRACT PRICES BECAUSE OF WAGE SCALE CHANGES SHOULD BE SUBMITTED BY THE CONTRACTORS TO THE PURCHASING OFFICER CONCERNED, SUPPORTED BY AUTHENTICATED COPIES OF WAGE SCALES IN EFFECT ON THE DATE OF THE OPENING OF BIDS AND THE NEW WAGE SCALES RELIED UPON IN CONNECTION WITH THE CLAIM--- THESE TO BE FURNISHED THE CONTRACTING OFFICER WITHIN 60 DAYS FROM THE EFFECTIVE DATE OF THE CHANGE--- AND AN AFFIDAVIT SHOWING WHETHER ANY SUCH CHANGES OTHER THAN THOSE INVOLVED IN THE CLAIM WERE EFFECTED BETWEEN THE OPENING OF THE BIDS AND THE DATES OF COAL DELIVERIES, IN ADDITION TO THE NAME OF THE MINE FROM WHICH EACH CARLOAD, IDENTIFIED BY CAR INITIAL, NUMBER, DATE OF SHIPMENT, AND WEIGHT, WAS PRODUCED, THE COMPUTATION TO BE IN ACCORDANCE WITH THE CONTRACT FORMULA AND THE CLAIMS TO BE SUBMITTED BY THE PURCHASING OFFICERS, WITH REPORT THEREON, TO THE GENERAL ACCOUNTING OFFICE FOR SETTLEMENT.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE WEST KENTUCKY COAL COMPANY, INC., MARCH 3, 1937:

THERE HAS BEEN RECEIVED YOUR LETTER OF JANUARY 6, 1937, AS FOLLOWS:

EFFECTIVE DECEMBER 16, 1936, THE WAGES OF THE MINERS AT OUR MINES WERE INCREASED, AND UNDER THE NEW INSTRUCTIONS TO BIDDERS WE ARE TO FILE CLAIM WITH THE GOVERNMENT, BASED ON THE F.O.B. MINES PRICE MULTIPLIED BY A PERCENTAGE FACTOR OF 60 PERCENT AND THIS FACTOR MULTIPLIED BY THE PERCENTAGE OF INCREASE IN THE WAGE RATE OF THE PREDOMINANT WAGE RATE CLASS OF OUR EMPLOYEES AND INASMUCH AS THE VARIOUS GOVERNMENT AGENCIES THAT WE ARE SHIPPING COAL TO DO NOT HAVE THE AUTHORITY TO PAY THIS WAGE INCREASE, AND WILL HAVE TO FILE A CLAIM, WHICH WILL HAVE TO BE APPROVED BY THE GENERAL ACCOUNTING OFFICE, WE ARE GOING TO ASK IN ADVANCE THAT YOU GIVE US A COMPLETE LETTER OF INSTRUCTIONS AS TO JUST HOW WE SHALL PREPARE OUR CLAIM, ALSO WHAT PAPERS ARE NECESSARY TO SUPPORT OUR CLAIM FOR THIS WAGE INCREASE. IN THIS WAY WE CAN PRESENT THE CLAIM IN A MANNER THAT WILL BE ACCEPTABLE TO YOUR OFFICE AND ONE WHICH YOU CAN PASS ON IMMEDIATELY, WHICH WILL FACILITATE THE HANDLING OF THESE CLAIMS, FOR AS YOU KNOW, WE STILL HAVE IN YOUR OFFICE SOME WAGE INCREASE CLAIMS WHICH YOU HAVE HAD FOR FOUR YEARS, AND WE ARE UNABLE TO MAKE COLLECTION, SO IN THIS CASE WE WANT TO KNOW EXACTLY WHAT YOU WANT IN ADVANCE, IN ORDER THAT WE CAN PRESENT OUR CLAIM AND RECEIVE PAYMENT WITHOUT ANY DELAY.

WE ASSURE YOU THAT YOUR GIVING THIS MATTER YOUR ATTENTION AND YOUR GIVING US INSTRUCTIONS AS TO THE PREPARATION OF OUR CLAIM WILL BE APPRECIATED.

THIS OFFICE CANNOT ADVISE YOU IN ADVANCE AS TO THE SHOWING OF FACTS NECESSARY TO SUPPORT A CLAIM UNDER A CONTRACT WITH THE UNITED STATES. IS SUGGESTED THAT YOU SUBMIT TO THE PURCHASING OFFICE CONCERNED FOR CONSIDERATION ANY CLAIM YOU MAY HAVE AND TO MAKE REPORT TO THIS OFFICE AS MAY BE REQUIRED BY THE FACTS. CLAIMS SO SUBMITTED UNDER CONTRACTS WHICH PROVIDE FOR THE DELETION OF PARAGRAPH 3, STANDARD GOVERNMENT PURCHASE CONDITIONS (COAL) AND THE SUBSTITUTION THEREFOR OF A METHOD OF DETERMINING AN INCREASE OR DECREASE IN THE CONTRACT PRICE OF COAL DUE TO WAGE SCALE CHANGES AS EXPRESSED IN THE FORMULA--- MINE PRICE MULTIPLIED BY 60 PERCENT AND THE PRODUCT THEREOF MULTIPLIED BY THE PERCENT OF CHANGE IN THE WAGE RATE (COMPUTED TO THE NEAREST TENTH PERCENT) OF THE OCCUPATIONAL CLASS OF MINE EMPLOYEES NAMED IN THE BID THAT HAS A PREDOMINANT EFFECT ON THE LABOR COST OF PRODUCING COAL AT THE MINE OR MINES NAMED BY THE CONTRACTOR IN ITS BID--- ARE REQUIRED TO BE SUPPORTED BY:

(1) AUTHENTICATED COPIES OF THE WAGE SCALE WHICH WAS IN EFFECT ON THE DATE OF THE OPENING OF THE BIDS AND OF THE NEW WAGE SCALE SHOWING THE CHANGE IN THE WAGE RATE FOR THE SPECIFIED PREDOMINANT OCCUPATIONAL CLASS OF MINE EMPLOYEES, AS IDENTIFIED BY NAME OR OTHER DESCRIPTION IN THE BID, WHICH AUTHENTICATED COPIES ARE TO BE FURNISHED BY THE CONTRACTOR AND DELIVERED TO THE CONTRACTING OFFICER WITHIN 60 DAYS FROM THE EFFECTIVE DATE OF THE WAGE SCALE CHANGE.

(2) AN AFFIDAVIT SHOWING:

(A) WHETHER ANY WAGE SCALE CHANGE OTHER THAN THAT UNDER WHICH THE CLAIM IS BASED WAS EFFECTED WITH MINE EMPLOYEES BETWEEN THE DATE OF THE OPENING OF BIDS AND THE DATES OF DELIVERIES OF COAL UNDER THE CONTRACT;

(B) THE NAME OF THE MINE OR MINES FROM WHICH EACH CARLOAD OF COAL, IDENTIFIED BY CAR INITIAL, NUMBER AND WEIGHT, WAS PRODUCED, AND THE DATE OR DATES EACH CARLOAD OF COAL WAS SHIPPED.

A DETAILED EXPLANATION AS TO THE COMPUTATION OF A CLAIM IN ACCORDANCE WITH THE ABOVE-MENTIONED FORMULA IS STATED IN THOSE CONTRACTS PROVIDING FOR ITS USE AND THE AMOUNT OF THE INCREASED COST SHOULD BE SO COMPUTED.

IF, UPON THE SUBMISSION OF A CLAIM, IT IS FOUND THAT FURTHER EVIDENCE IS NECESSARY, YOU WILL BE ADVISED WITH RESPECT THERETO.