B-140159, JAN. 29, 1960

B-140159: Jan 29, 1960

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TO GENERAL MOTORS CORPORATION: REFERENCE IS MADE TO YOUR LETTER OF JANUARY 14. WHICH WAS REVIEWED WITH YOU AT A MEETING ON JANUARY 4. IT WAS SUGGESTED THAT THE CLAIM EMBRACED THREE ITEMS WHICH MAY BE CLASSIFIED. YOU CONTEND IN YOUR LETTER THAT ITEM 1 OF THE GOVERNMENT'S CLAIM IS BASED ON AN ERRONEOUS INTERPRETATION OF A MEMORANDUM RELATING TO THE USE OF THE CRANES AND IS WITHOUT FOUNDATION IN ACT. THAT ITEM 2 IS UNREASONABLE AND UNSUPPORTABLE SINCE THE RESPONSIBLE AGENCY HAD ACCEPTED THE RENTAL CHARGES TENDERED PURSUANT TO AN APPARENTLY MUTUAL UNDERSTANDING OF THE RENTAL PROVISIONS OF THE AMENDATORY LEASE OF JUNE 5. YOU APPARENTLY CONCEDED THAT THE RENTAL PAYMENTS TENDERED WERE NOT IN CONFORMANCE WITH THE TERMS OF THE LEASE AGREEMENT OF OCTOBER 16.

B-140159, JAN. 29, 1960

TO GENERAL MOTORS CORPORATION:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 14, 1960, WITH RESPECT TO A CLAIM BY THE GOVERNMENT FOR ADDITIONAL RENTAL CHARGES COVERING THREE CRANES AT THE SAGINAW FORGE PLANT UNDER TWO LEASES, NOS. WS 16/S/-88, DATED AUGUST 19, 1947, AS AMENDED JUNE 5, 1950, AND GS-05B-S 84 DATED OCTOBER 16, 1952, ADMINISTRATIVELY FOUND DUE IN THE TOTAL SUM OF $34,808.82 AS STATED IN OUR LETTER OF MARCH 26, 1959, WHICH WAS REVIEWED WITH YOU AT A MEETING ON JANUARY 4, 1960, WITH REPRESENTATIVES OF OUR OFFICE.

DURING THE MEETING OF JANUARY 4, IT WAS SUGGESTED THAT THE CLAIM EMBRACED THREE ITEMS WHICH MAY BE CLASSIFIED, AS FOLLOWS: (1) RENTAL FOR USAGE OF CRANES DURING THE PERIOD AUGUST 19, 1947, TO JUNE 10, 1949, ERRONEOUSLY INCLUDED BY THE AUDITORS IN THEIR COMPUTATIONS--- $6,742.60; (2) RENTAL ON CRANES IN EXCESS OF THAT DUE ON A DAILY USE BASIS DURING THE PERIOD COVERED BY THE AMENDATORY LEASE OF 1950--- $16,851.12; AND (3) RENTAL IN EXCESS OF THAT DUE ON A DAILY USE BASIS FOR THE PERIOD COVERED BY THE 1952 LEASE--- $11,215.10.

YOU CONTEND IN YOUR LETTER THAT ITEM 1 OF THE GOVERNMENT'S CLAIM IS BASED ON AN ERRONEOUS INTERPRETATION OF A MEMORANDUM RELATING TO THE USE OF THE CRANES AND IS WITHOUT FOUNDATION IN ACT; AND THAT ITEM 2 IS UNREASONABLE AND UNSUPPORTABLE SINCE THE RESPONSIBLE AGENCY HAD ACCEPTED THE RENTAL CHARGES TENDERED PURSUANT TO AN APPARENTLY MUTUAL UNDERSTANDING OF THE RENTAL PROVISIONS OF THE AMENDATORY LEASE OF JUNE 5, 1950. WITH RESPECT TO ITEM 3, YOU APPARENTLY CONCEDED THAT THE RENTAL PAYMENTS TENDERED WERE NOT IN CONFORMANCE WITH THE TERMS OF THE LEASE AGREEMENT OF OCTOBER 16, 1952, AND YOU STATE THAT YOU ARE WILLING TO PAY THE ADDITIONAL CHARGES ALLEGED TOBE DUE IN THE SUM OF $11,215.10 IN FULL SATISFACTION OF THE CLAIM.

BASED ON A CAREFUL CONSIDERATION OF THE ENTIRE RECORD IN THE LIGHT OF ADDITIONAL EVIDENCE AND INFORMATION FURNISHED BY YOU, IT HAS BEEN DETERMINED THAT NO FURTHER CLAIM SHOULD BE MADE WITH RESPECT TO ITEMS 1 AND 2, AND UPON RECEIPT OF A CHECK IN THE SUM OF $11,215.10 WHICH MAY BE MADE PAYABLE TO OUR OFFICE AND FORWARDED AS INDICATED IN OUR LETTER OF MARCH 26, 1959, THE MATTER WILL BE CLOSED.