B-154225, JUN. 29, 1964

B-154225: Jun 29, 1964

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TO UNION PACIFIC RAILROAD COMPANY: WE HAVE FOR CONSIDERATION YOUR CLAIM IN THE AMOUNT OF $3. THE CONTRACT OF THE UNITED STATES WITH NEPHI PROVIDED THAT THE "USDA WILL REIMBURSE CONTRACTOR FOR THE COST OF TRANSPORTATION * * *. " WHICH WAS TO BE PREPAID BY NEPHI. YOU ASK IF THE GOVERNMENT WILL PAY DIRECTLY TO YOU THE FREIGHT CHARGES IT WOULD BE CONTRACTUALLY OBLIGATED TO PAY TO NEPHI IF THAT COMPANY WERE ABLE TO AND DID PAY ITS DEBT TO YOU. IN THE CIRCUMSTANCES WE WILL AUTHORIZE PAYMENT OF THE CLAIM (SUBJECT TO VERIFICATION OF THE TARIFFS APPLICABLE) UPON RECEIPT OF A LETTER FROM AN AUTHORIZED RESPONSIBLE OFFICIAL OF UNION PACIFIC RAILROAD COMPANY UNDERTAKING ON ITS BEHALF TO SAVE THE GOVERNMENT HARMLESS FROM ALL MANNER OF LOSS.

B-154225, JUN. 29, 1964

TO UNION PACIFIC RAILROAD COMPANY:

WE HAVE FOR CONSIDERATION YOUR CLAIM IN THE AMOUNT OF $3,775.22 FOR FREIGHT SERVICES RENDERED TO NEPHI PROCESSING PLANT, INC., 295 WEST 4TH SOUTH, NEPHI, UTAH, IN CONNECTION WITH THAT COMPANY'S PERFORMANCE OF A CONTRACT WITH THE U.S. DEPARTMENT OF AGRICULTURE (USDA) CALLING FOR THE DELIVERY OF QUANTITIES OF TURKEYS TO SPECIFIED DESTINATIONS.

THE CONTRACT OF THE UNITED STATES WITH NEPHI PROVIDED THAT THE "USDA WILL REIMBURSE CONTRACTOR FOR THE COST OF TRANSPORTATION * * *," WHICH WAS TO BE PREPAID BY NEPHI; HOWEVER, IT APPEARS THAT YOU ACCEPTED THE SHIPMENTS ON THE CONTRACTOR'S CREDIT WITHOUT REQUIRING ACTUAL PREPAYMENT. IN A LETTER OF JANUARY 31, 1963, TO THE USDA, WHICH ENCLOSED THE SUBJECT BILLS, YOU SAY NEPHI HAD STATED THAT, BECAUSE OF FINANCIAL DIFFICULTIES, IT COULD NOT PAY YOU FOR YOUR SERVICES, AND YOU ASK IF THE GOVERNMENT WILL PAY DIRECTLY TO YOU THE FREIGHT CHARGES IT WOULD BE CONTRACTUALLY OBLIGATED TO PAY TO NEPHI IF THAT COMPANY WERE ABLE TO AND DID PAY ITS DEBT TO YOU.

IN THE CIRCUMSTANCES WE WILL AUTHORIZE PAYMENT OF THE CLAIM (SUBJECT TO VERIFICATION OF THE TARIFFS APPLICABLE) UPON RECEIPT OF A LETTER FROM AN AUTHORIZED RESPONSIBLE OFFICIAL OF UNION PACIFIC RAILROAD COMPANY UNDERTAKING ON ITS BEHALF TO SAVE THE GOVERNMENT HARMLESS FROM ALL MANNER OF LOSS, COST, EXPENSE OR LIABILITY RESULTING FROM ITS PAYMENT TO UNION PACIFIC RAILROAD COMPANY OF THE AMOUNT DUE FOR TRANSPORTATION EXPENSES (WHICH AMOUNT SHALL NOT EXCEED THE PUBLISHED COMMON CARRIER RATES FOR TRANSPORTATION SERVICES BY THE MOST ECONOMICAL RATES) INVOLVED IN THE SHIPMENT OF FROZEN TURKEYS UNDER NOTICES TO DELIVER NOS. AMRA 86362, 86363, 86364, DELIVERY ORDERS NOS. 54-C-1, 54-C-2, 12-C-1, ISSUED PURSUANT TO CONTRACTS 12-25-010-3134, 3147, AND 4626, BETWEEN THE GOVERNMENT AND NEPHI PROCESSING PLANT, INC. ..END :