B-147177, SEP. 25, 1961

B-147177, SEP. 25, 1961

TO WON CHUNG IRON WORKS:

REFERENCE IS MADE TO YOUR LETTER DATED AUGUST 21, 1961, REQUESTING REVIEW OF SETTLEMENT DATED JUNE 27, 1961, WHICH DISALLOWED 2,606,794.50 HWAN OF YOUR CLAIM OF 3,248,875 HWAN FOR ALLEGED DAMAGES ARISING UNDER UNNUMBERED CONTRACT 0I 217.

THE PROPERTY DISPOSAL SALES OFFICE, 7TH LOGISTICAL COMMAND (C), APO 612, SAN FRANCISCO, CALIFORNIA, OFFERED FOR SALE CERTAIN ITEMS OF GOVERNMENT PROPERTY, ITEM 1, BEING DESCRIBED AS A PONTOON BARGE. YOUR BID ON ITEM 1 OF 1,500,000 HWAN WAS ACCEPTED FEBRUARY 10, 1961.

INSTEAD OF REMOVING THE PROPERTY DESCRIBED AS ITEM 1 YOU ACCEPTED ERRONEOUS DELIVERY OF 159 SERVICEABLE PONTOON CUBES. IMMEDIATELY AFTER DISCLOSURE OF THE ERRONEOUS DELIVERY, GOVERNMENT REPRESENTATIVES INITIATED ACTION TO RECOVER THE PROPERTY AND RETURN IT TO STOCK. THIS ACTION WAS CONSUMMATED AT GOVERNMENT EXPENSE ON APRIL 12, 1961. THE PURCHASE PRICE OF 1,500, HWAN WAS ACCORDINGLY REFUNDED. YOU SUBMITTED A CLAIM TO RECOVER FROM THE GOVERNMENT DAMAGES ALLEGEDLY SUFFERED AS A RESULT OF TRANSPORTING AND STORING GOVERNMENT PROPERTY DURING THE PERIOD MARCH 8 THROUGH APRIL 12, 1961. THE CLAIM OF 3,248,875 HWAN IS MORE THAN DOUBLE THE ORIGINAL PURCHASE PRICE.

BY SETTLEMENT OF JUNE 27, 1961, YOU WERE ALLOWED 642,080.50 HWAN. WITH THE EXCEPTION OF WAREHOUSING FEES THIS DETERMINATION WAS REACHED THROUGH A STUDY OF ACTUAL GOVERNMENT EXPENDITURES FOR IDENTICAL SERVICES WITHIN KOREA. THE WAREHOUSING CHARGES WERE QUOTED BY THE KOREA FORWARDING COMPANY OF SEOUL WHICH WAS CURRENTLY PERFORMING SERVICES UNDER GOVERNMENT CONTRACT. THE AMOUNTS LISTED IN YOUR LETTER OF APRIL 18, 1961, ARE CONSIDERED TO BE UNREASONABLY HIGH. ALSO, IT APPEARS THAT YOU HAVE ERRONEOUSLY CLAIMED LABOR FEES FOR 30 MEN FOR 10 DAYS, RATHER THAN FOR 3 MEN FOR 10 DAYS. THE AMOUNTS ALLOWED IN THE SETTLEMENT APPEAR REASONABLE AND JUST.