B-146760, B-146846, JUL. 22, 1964

B-146760,B-146846: Jul 22, 1964

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WE ARE CURRENTLY REVIEWING YOUR MEMORANDUM OF JULY 1. WE ARE NOT IN A POSITION TO DISCUSS THE MATTER AT THIS TIME. WILL ADVISE YOU OF THE APPROPRIATE TIME THAT A MEETING MAY BE ARRANGED TO DISCUSS THE REPORTS IN THE LIGHT OF YOUR MEMORANDUM. ARE BEING CONSIDERED BY ROBERT H.

B-146760, B-146846, JUL. 22, 1964

TO HEDRICK AND LANE:

WE ACKNOWLEDGE RECEIPT OF YOUR LETTER OF JULY 14, 1964, WITH FURTHER REFERENCE TO OUR DRAFTS OF PROPOSED REPORTS ON "OVERPRICING OF NUCLEAR SUBMARINE VALVES PURCHASED FROM CRANE COMPANY, CHICAGO, ILLINOIS, BY WESTINGHOUSE ELECTRIC CORPORATION, PITTSBURGH, PENNSYLVANIA, UNDER COST PLUS-A-FIXED FEE CONTRACTS, DEPARTMENT OF THE NAVY," AND "OVERPRICING OF NUCLEAR COMPONENTS PURCHASED FROM COMBUSTION ENGINEERING, INC., NEW YORK, NEW YORK, BY WESTINGHOUSE ELECTRIC CORPORATION UNDER COST-PLUS-A FIXED FEE CONTRACTS.'

WE ARE CURRENTLY REVIEWING YOUR MEMORANDUM OF JULY 1, 1964, SETTING FORTH THE POSITIONS OF WESTINGHOUSE ON BOTH DRAFT REPORTS. YOU CONCLUDED ON THE BASIS OF THE FACTS AND AUTHORITIES DISCUSSED IN THE MEMORANDUM, THAT NO LEGAL OR CONTRACTUAL BASIS EXISTS FOR ISSUANCE OF THE REPORTS AS DRAFTED. HOWEVER, WE ARE NOT IN A POSITION TO DISCUSS THE MATTER AT THIS TIME. WILL ADVISE YOU OF THE APPROPRIATE TIME THAT A MEETING MAY BE ARRANGED TO DISCUSS THE REPORTS IN THE LIGHT OF YOUR MEMORANDUM.

THESE REPORTS, AMONG OTHERS DEALING WITH THE WESTINGHOUSE ELECTRIC CORPORATION, ARE BEING CONSIDERED BY ROBERT H. RUMIZEN, ATTORNEY, OFFICE OF THE GENERAL COUNSEL, AND BY THE AUDIT STAFF OF J. K. FASICK, ASSOCIATE DIRECTOR, DEFENSE ACCOUNTING AND AUDITING DIVISION.