B-112109, B-121072, MAY 13, 1958
Highlights
TO THE SECRETARY OF THE AIR FORCE: REFERENCE IS MADE TO YOUR LETTER OF MARCH 6. IT IS STATED IN YOUR LETTER THAT IN NEGOTIATING THESE SETTLEMENTS EVERY ITEM OF COST WAS THOROUGHLY AND CONSCIENTIOUSLY EVALUATED ON THE BASIS OF THE OVERALL INFORMATION. THAT ALL ARRANGEMENTS OF POSSIBLE RECOUPMENT OF COST TO THE GOVERNMENT WERE CAREFULLY CONSIDERED AND ANALYZED BY THE TERMINATION CONTRACTING OFFICER. IT IS ALSO STATED THAT APPROPRIATE DEDUCTIONS HAVE BEEN MADE COVERING GIFTS AND KICKBACKS PAID TO WHIRLPOOL EMPLOYEES. THAT THE TERMINATION CLAIMS MADE BY WHIRLPOOL CORPORATION UNDER THE WILLYS MOTORS AND THE KAISER AIRCRAFT AND ELECTRONICS CORPORATION CONTRACTS HAVE BEEN REDUCED IN THE SUMS OF $1.
B-112109, B-121072, MAY 13, 1958
TO THE SECRETARY OF THE AIR FORCE:
REFERENCE IS MADE TO YOUR LETTER OF MARCH 6, 1958, TRANSMITTING COPIES OF THE ADMINISTRATIVE REPORTS AND ALLIED PAPERS PERTAINING TO THE TENTATIVE TERMINATION SETTLEMENTS MADE BY YOUR DEPARTMENT WITH THE WHIRLPOOL CORPORATION OF ITS TERMINATION CLAIMS AS A SUBCONTRACTOR UNDER THE ABOVE CONTRACTS.
IT IS STATED IN YOUR LETTER THAT IN NEGOTIATING THESE SETTLEMENTS EVERY ITEM OF COST WAS THOROUGHLY AND CONSCIENTIOUSLY EVALUATED ON THE BASIS OF THE OVERALL INFORMATION, INCLUDING THE CRIRS AND DRIRS ISSUED BY OUR OFFICE, AND THAT ALL ARRANGEMENTS OF POSSIBLE RECOUPMENT OF COST TO THE GOVERNMENT WERE CAREFULLY CONSIDERED AND ANALYZED BY THE TERMINATION CONTRACTING OFFICER. IT IS ALSO STATED THAT APPROPRIATE DEDUCTIONS HAVE BEEN MADE COVERING GIFTS AND KICKBACKS PAID TO WHIRLPOOL EMPLOYEES, AND THAT THE TERMINATION CLAIMS MADE BY WHIRLPOOL CORPORATION UNDER THE WILLYS MOTORS AND THE KAISER AIRCRAFT AND ELECTRONICS CORPORATION CONTRACTS HAVE BEEN REDUCED IN THE SUMS OF $1,177,841 AND $303,675, RESPECTIVELY, OR A TOTAL REDUCTION OF $1,481,516 UNDER THE TWO CONTRACTS. IT IS STATED FURTHER IN YOUR LETTER THAT BOTH OF THE TENTATIVE SETTLEMENTS HAVE BEEN APPROVED BY THE SETTLEMENT REVIEW BOARD AT THE AIR MATERIEL COMMAND AND SIMILARLY APPROVED, AFTER CAREFUL REVIEW, BY HEADQUARTERS, USAF, AND THAT YOU BELIEVE THAT ALL OF THE SUMS RECOMMENDED FOR PAYMENT UNDER BOTH OF THE TENTATIVE SETTLEMENTS ARE FAIR AND REASONABLE AND PROPERLY ALLOCABLE AS REIMBURSABLE COSTS OF THE CONTRACTS.
IN VIEW OF THE FOREGOING, WE WILL INTERPOSE NO OBJECTION TO THE CONSUMMATION OF THE PROPOSED SETTLEMENTS, WHICH ARE UNDERSTOOD TO BE, AS STATED IN YOUR LETTER, WITHOUT PREJUDICE TO ANY OF THE FRAUD MATTERS STILL UNDER CONSIDERATION BY THE DEPARTMENT OF JUSTICE. WE ARE SO ADVISING THE ATTORNEY GENERAL BY OUR LETTER OF TODAY.