B-149702, MAY 26, 1964
Highlights
GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO LETTER OF JULY 13. WHICH CLAIM WAS DISALLOWED BY OUR SETTLEMENT CERTIFICATE DATED JANUARY 17. A COPY OF WHICH WAS FURNISHED YOUR ADMINISTRATION. WE HAVE CONCLUDED THAT THE GOVERNMENT IS NOT ENTITLED TO ANY REDUCTION OF AMORTIZATION PAYMENTS. THAT THE FULL AMOUNT WITHHELD FOR THAT PURPOSE IS DUE AND PAYABLE TO THE CONTRACTOR. WE ARE THEREFORE AUTHORIZING THE CLAIMS DIVISION OF THIS OFFICE TO ALLOW THE CLAIM.
B-149702, MAY 26, 1964
TO ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:
REFERENCE IS MADE TO LETTER OF JULY 13, 1962, REFERENCE 3BCRO 11-63, FROM THE ACTING CHIEF, ACCOUNTING AND REPORTS MANAGEMENT DIVISION, TRANSMITTING THE CLAIM OF UNION CARBIDE CORPORATION FOR $502,835, WITHHELD FROM FINAL PAYMENT OF AMORTIZATION UNDER CONTRACT NO. IMP-100, DATED SEPTEMBER 14, 1954, WHICH CLAIM WAS DISALLOWED BY OUR SETTLEMENT CERTIFICATE DATED JANUARY 17, 1963, A COPY OF WHICH WAS FURNISHED YOUR ADMINISTRATION.
IN SUPPORT OF ITS REQUEST FOR REVIEW OF THE ABOVE DISALLOWANCE, THE CONTRACTOR HAS SUBMITTED ANNUAL SUMMARIES OF SALES OF OFF-GRADE MATERIAL FOR THE PERIOD 1956 THROUGH 1961 WHICH DISCLOSE THAT THE AVERAGE ANNUAL SALE PRICE PER POUND OF IN-GRADE MATERIAL EXCEEDED THE CORRESPONDING SALE PRICE OF OFF-GRADE MATERIAL BY MORE THAN THE AMOUNT OF THE AMORTIZATION FACTOR. BASED ON THIS INFORMATION, AND UPON ADDITIONAL INFORMATION SUBMITTED IN CONNECTION WITH INSURED FIRE LOSSES, AND AFTER CONSIDERATION OF OTHER QUESTIONS RAISED IN GSA AUDIT REPORT NO. 320, WE HAVE CONCLUDED THAT THE GOVERNMENT IS NOT ENTITLED TO ANY REDUCTION OF AMORTIZATION PAYMENTS, AND THAT THE FULL AMOUNT WITHHELD FOR THAT PURPOSE IS DUE AND PAYABLE TO THE CONTRACTOR. WE ARE THEREFORE AUTHORIZING THE CLAIMS DIVISION OF THIS OFFICE TO ALLOW THE CLAIM, AS ADMINISTRATIVELY RECOMMENDED.