B-136343, OCT. 26, 1959

B-136343: Oct 26, 1959

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PORTER: REFERENCE IS MADE TO YOUR LETTER DATED JULY 11. IT IS ASSUMED THAT YOUR LETTER HAS REFERENCE TO A SO-CALLED DEPOSIT IN CONNECTION WITH CONTRACT NO. WHICH WAS THE SUBJECT OF A LETTER ADDRESSED TO YOU ON JUNE 25. AS YOU WERE INFORMED IN THAT LETTER. UNDER WHICH THE CONTRACTOR WAS AUTHORIZED TO EXPORT SCRAP METAL ON A BROADER BASIS THAN WAS PERMITTED UNDER THE ORIGINAL CONTRACT. IT WAS THE PURCHASE PRICE PAID FOR THE AMENDMENT OF THE CONTRACT. 000 WAS PAID AS CONSIDERATION AND CREDITED TO MISCELLANEOUS RECEIPTS ON JANUARY 21.

B-136343, OCT. 26, 1959

TO MR. B. H. PORTER:

REFERENCE IS MADE TO YOUR LETTER DATED JULY 11, 1959, REQUESTING THE GOVERNMENT TO RETURN THE SUM OF FIVE THOUSAND DOLLARS. WHILE NOT SO STATED IN YOUR COMMUNICATION, IT IS ASSUMED THAT YOUR LETTER HAS REFERENCE TO A SO-CALLED DEPOSIT IN CONNECTION WITH CONTRACT NO. AF 64/130/S-1, DATED JANUARY 21, 1953, AND SUPPLEMENTAL AGREEMENT NO. 1, DATED AUGUST 4, 1953, WHICH WAS THE SUBJECT OF A LETTER ADDRESSED TO YOU ON JUNE 25, 1959, BY OUR CLAIMS DIVISION.

AS YOU WERE INFORMED IN THAT LETTER, THE AMOUNT IN QUESTION REPRESENTED THE LEGAL CONSIDERATION PAID PURSUANT TO SUPPLEMENTAL AGREEMENT NO. 1 TO THE CONTRACT, UNDER WHICH THE CONTRACTOR WAS AUTHORIZED TO EXPORT SCRAP METAL ON A BROADER BASIS THAN WAS PERMITTED UNDER THE ORIGINAL CONTRACT. IN OTHER WORDS, IT WAS THE PURCHASE PRICE PAID FOR THE AMENDMENT OF THE CONTRACT. THEREFORE, SINCE THE $5,000 WAS PAID AS CONSIDERATION AND CREDITED TO MISCELLANEOUS RECEIPTS ON JANUARY 21, 1953, IT CANNOT BE REGARDED AS A REFUNDABLE DEPOSIT, REGARDLESS OF THE FAILURE OF THE CONTRACTOR TO EXERCISE THE PRIVILEGES GRANTED UNDER THE SUPPLEMENTAL AGREEMENT.