B-137300, DEC. 16, 1959

B-137300, DEC. 16, 1959

TO ERIN METALS CORPORATION:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 9, 1959, TRANSMITTING A COPY OF YOUR LETTER OF JANUARY 12, 1959, TO THE NORTON AIR FORCE BASE, SAN BERNARDINO, CALIFORNIA, RELATING TO THE ACTION OF THE DEPARTMENT OF THE AIR FORCE IN DECLARING YOU TO BE IN DEFAULT UNDER CONTRACT NO. AF-04-607-S-1478 COVERING THE SALE TO YOU OF "141OBSOLETE B- 26 BOMBERS.'

IN OUR LETTER OF JUNE 18, 1959, WE ADVISED YOU THAT A REPORT FROM THE DEPARTMENT OF THE AIR FORCE INDICATED THAT YOU HAD APPEALED TO THE ARMED SERVICES BOARD OF CONTRACT APPEALS FROM CERTAIN ADMINISTRATIVE DETERMINATIONS, AND THAT PENDING THE OUTCOME OF THE APPEAL WE WOULD NOT BE JUSTIFIED IN RENDERING A DECISION IN THIS CASE, SINCE THE RULING OF THE BOARD WOULD BE CONCLUSIVE AS TO THE FACTS. ON THE SAME DAY WE ADDRESSED A LETTER TO THE SECRETARY OF THE AIR FORCE REQUESTING TO BE FURNISHED WITH A COPY OF THE BOARD'S OPINION.

WE ARE NOW IN RECEIPT OF COPIES OF THE OPINION RENDERED NOVEMBER 19, 1959, BY THE ARMED SERVICES BOARD OF CONTRACT APPEALS, ASBCA NOS. 5194, 5624, ON THE APPEALS OF THE ERIN METALS CORPORATION OF ARIZONA, IN WHICH THE BOARD CONSIDERED AT LENGTH THE SEVERAL MATTERS INVOLVED IN THE APPEALS. IT IS ASSUMED THAT YOU HAVE BEEN FURNISHED WITH A COPY OF THE OPINION. UPON CONSIDERATION OF THE FACTS INVOLVED, THE BOARD CONCLUDED THAT THE GOVERNMENT'S CLAIM, ORIGINALLY ASSERTED IN THE AMOUNT OF $318,523.40, SHOULD BE REDUCED TO THE SUM OF $242,445.39. WITHOUT SETTING FORTH HEREIN ALL THE FACTS AND CIRCUMSTANCES INVOLVED IN THE APPEALS, WE CONSIDER IT SUFFICIENT TO SAY THAT WE SEE ON THE RECORD BEFORE US NO BASIS FOR ANY ACTION BY THIS OFFICE AT VARIANCE WITH THE DECISION OF THE BOARD.