B-143354, SEP. 14, 1960

B-143354, SEP. 14, 1960

TO THE SECRETARY OF THE ARMY:

REFERENCE IS MADE TO LETTER OF AUGUST 25, 1960, FROM THE DEPUTY ASSISTANT SECRETARY OF THE ARMY (LOGISTICS), WITH ENCLOSURES, RELATIVE TO THE CLAIM OF EDWIN J. MCDERMOTT, ATTORNEY FOR TRU-CRAFT CLOTHES, INCORPORATED, FOR PAYMENT OF $22,374.07, AWARDED TO IT BY THE ARMED SERVICES BOARD OF CONTRACT APPEALS IN DECISION NO. 5738, DATED JUNE 10, 1960. THE CONTRACTING OFFICER QUESTIONED THE PROPRIETY OF CERTIFYING FOR PAYMENT THE ABOVE AMOUNT WITHOUT OBTAINING A FULL AND UNCONDITIONAL RELEASE EXECUTED BY THE CONTRACTOR, IN VIEW OF THE INTENTION EXPRESSED BY THE ATTORNEY IN THE CASE TO INITIATE AN ACTION IN THE UNITED STATES COURT OF CLAIMS FOR ADDITIONAL AMOUNTS BELIEVED TO BE DUE UNDER THE CONTRACT INVOLVED, NO. DA- 36-243-QM/CTM/-452.

THE FACTS AND CIRCUMSTANCES PROMPTING THIS CLAIM WERE REVIEWED BY THE DEPUTY THE QUARTERMASTER GENERAL, AND IN AN UNDATED REPORT WHICH ACCOMPANIED YOUR LETTER HE STATED THE VIEW OF THE DEPARTMENT OF THE ARMY THAT THE CONTRACTOR SHOULD BE PAID THE AMOUNT INVOLVED, SUBJECT TO THE FURNISHING OF A PARTIAL RELEASE COVERING THOSE ELEMENTS OF ITS CLAIM FOR WHICH PAYMENT WOULD BE MADE.

SINCE IT APPEARS THAT THE BASIS FOR ANY SUBSEQUENT COURT ACTION CONTEMPLATED BY THE CONTRACTOR COULD RELATE ONLY TO OTHER CLAIMED ITEMS ARISING UNDER THE CONTRACT, AND SINCE THE GOVERNMENT'S INTERESTS WOULD BE ADEQUATELY PROTECTED BY THE RELEASE WITH RESPECT TO PAYMENT OF THE AMOUNT PARTIALLY ALLOWED UNDER THE ABOVE AWARD, WE CONCUR WITH THE VIEWS EXPRESSED BY THE DEPUTY THE QUARTERMASTER GENERAL, AND THEREFORE NO OBJECTION WILL BE RAISED BY US TO THE RELEASE OF THE SAID FUNDS.