B-131579, MAY 24, 1957

B-131579: May 24, 1957

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CHAIRMAN UNITED STATES ATOMIC ENERGY COMMISSION: REFERENCE IS MADE TO LETTER OF APRIL 15. FROM THE ASSISTANT GENERAL MANAGER OF THE COMMISSION ASKING WHETHER WE WOULD HAVE ANY OBJECTION TO THE EXECUTION OF A PROPOSED SETTLEMENT AGREEMENT BETWEEN THE UNIVERSITY OF CHICAGO AND THE ATOMIC ENERGY COMMISSION. THE CONTRACTS FURTHER PROVIDE THAT SUCH DETERMINATIONS OF REFUNDABLE EXCESS OVERHEAD SHALL NOT BE SUBJECT TO AUDIT OR REVIEW BY THE GOVERNMENT SINCE THE REFUNDS ARE VOLUNTARY OFFERS ON THE PART OF THE CONTRACTOR. YOU ARE ADVISED THAT WE HAVE NO OUTSTANDING EXCEPTIONS AGAINST AUDITED EXPENDITURES BY THE COMMISSION UNDER THE CONTRACTS INVOLVED AS OF THE CUT- OFF DATE OF THE PROPOSED SETTLEMENT.

B-131579, MAY 24, 1957

TO HONORABLE LEWIS L. STRAUSS, CHAIRMAN UNITED STATES ATOMIC ENERGY COMMISSION:

REFERENCE IS MADE TO LETTER OF APRIL 15, 1957, FROM THE ASSISTANT GENERAL MANAGER OF THE COMMISSION ASKING WHETHER WE WOULD HAVE ANY OBJECTION TO THE EXECUTION OF A PROPOSED SETTLEMENT AGREEMENT BETWEEN THE UNIVERSITY OF CHICAGO AND THE ATOMIC ENERGY COMMISSION.

THE PROPOSED SETTLEMENT AGREEMENT WOULD PROVIDE FOR THE REFUND TO THE GOVERNMENT OF EXCESS OVERHEAD ALLOWED THE UNIVERSITY UNDER CONTRACTS NOS. W-7401-ENG-37, W-7405-ENG-39, AT-40-1-GEN-42, AND FOR THE PERIOD ENDING DECEMBER 31, 1951, UNDER CONTRACT NO. W-31-109-ENG 38. THESE COST-TYPE CONTRACT PROVIDE FOR REFUND BY THE CONTRACTOR OF EXCESS OVERHEAD AS DETERMINED BY IT AND CERTIFIED BY A PUBLIC ACCOUNTING FIRM ACCEPTABLE TO THE COMMISSION. THE CONTRACTS FURTHER PROVIDE THAT SUCH DETERMINATIONS OF REFUNDABLE EXCESS OVERHEAD SHALL NOT BE SUBJECT TO AUDIT OR REVIEW BY THE GOVERNMENT SINCE THE REFUNDS ARE VOLUNTARY OFFERS ON THE PART OF THE CONTRACTOR.

YOU ARE ADVISED THAT WE HAVE NO OUTSTANDING EXCEPTIONS AGAINST AUDITED EXPENDITURES BY THE COMMISSION UNDER THE CONTRACTS INVOLVED AS OF THE CUT- OFF DATE OF THE PROPOSED SETTLEMENT, DECEMBER 31, 1951, AND UNDER THE CIRCUMSTANCES WE HAVE NO OBJECTIONS TO ITS EXECUTION.