B-144807, AUG. 1, 1958

B-144807: Aug 1, 1958

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J. LAVINE AND COMPANY: REFERENCE IS MADE TO YOUR LETTER OF JUNE 23. THE PERTINENT FACTS AND OUR VIEWS IN THE MATTER ARE SET FORTH IN CONSIDERABLE DETAIL IN OUR LETTER OF JUNE 6. THERE IS REPEATED ONLY OUR VIEW THAT THE UNITED STATES HAS PAID YOU $30. IN DUE TIME THE INDEBTEDNESS WILL BE REFERRED TO THE DEPARTMENT OF JUSTICE AND REPRESENTATIVES OF THAT DEPARTMENT DOUBTLESS WILL CONTACT YOU WITH RESPECT TO THE MATTER.

B-144807, AUG. 1, 1958

TO E. J. LAVINE AND COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 23, 1958, REPLYING TO OUR LETTER OF JUNE 6, 1958, RELATIVE TO THE CLAIM OF THE UNITED STATES AGAINST YOU ARISING UNDER CONTRACT NO. GS-OOP-373/SCM), DATED MARCH 26, 1951, COVERING THE PURCHASE OF CHROMITE FROM YOUR COMPANY. IN YOUR LETTER YOU DECLINE TO MAKE PAYMENT OF THE AMOUNT CLAIMED, SETTING OUT THE REASONS FOR YOUR POSITION.

THE PERTINENT FACTS AND OUR VIEWS IN THE MATTER ARE SET FORTH IN CONSIDERABLE DETAIL IN OUR LETTER OF JUNE 6, 1958, AND NEED NOT BE REPEATED AT THIS TIME. VERY BRIEFLY, THERE IS REPEATED ONLY OUR VIEW THAT THE UNITED STATES HAS PAID YOU $30,518.83 MORE THAN "THE COST OF THE MATERIAL (THE PRICE THE CONTRACTOR PAYS TO ITS SUPPLIER, BENGUET CONSOLIDATED MINING COMPANY), FREIGHT, INSURANCE, AND CONTRACTOR'S FIXED FEE," WITHIN THE MEANING OF THE PROVISIONS OF THE CONTRACT. ACCORDINGLY, IN DUE TIME THE INDEBTEDNESS WILL BE REFERRED TO THE DEPARTMENT OF JUSTICE AND REPRESENTATIVES OF THAT DEPARTMENT DOUBTLESS WILL CONTACT YOU WITH RESPECT TO THE MATTER.