B-163623, MAR. 22, 1968

B-163623, MAR. 22, 1968

TO MR. KNOTT:

ENCLOSED IS A COPY OF OUR DECISION OF TODAY TO MR. PAUL J. EULE, CHIEF, SUPPLY DIVISION, VETERANS ADMINISTRATION HOSPITAL, WEST HAVEN, CONNECTICUT, IN RESPONSE TO HIS SUBMISSION DATED FEBRUARY 16, 1968, COPY ENCLOSED, REQUESTING OUR DECISION AS TO THE PROPER BASIS FOR MAKING PAYMENT TO FORESTON COAL COMPANY, NEW YORK, NEW YORK, UNDER CONTRACT NO. CS-03S-28737, IN VIEW OF RECENT DISCREPANCIES IN THE WEIGHTS OF THE COAL DELIVERED UNDER THE CONTRACT. IN A LETTER DATED NOVEMBER 13, 1967, COPY ENCLOSED, MR. A. J. PAPPENDREAU, CHIEF, SCHEDULES AND TERM CONTRACTS SECTION, GENERAL SERVICES ADMINISTRATION, REGION 3, ADVISED THE VETERANS ADMINISTRATION THAT PAYMENT FOR THE DELIVERIES UNDER THE SUBJECT CONTRACT SHOULD BE MADE ON THE BASIS OF SPECIAL PROVISION 4 (C) TO THE CONTRACT.

WHILE WE BELIEVE THAT THIS INTERPRETATION IS LEGALLY PROPER, IT IS OUR INFORMAL UNDERSTANDING THAT MR. PAPPENDREAU DOES NOT QUESTION MR. EULE'S CONTENTION THAT THE DIFFERENCES IN WEIGHTS OF THE COAL ARE CAUSED BY EXCESS MOISTURE. ACCORDINGLY, WE RECOMMEND THAT CONSIDERATION BE GIVEN TO AMENDING SECTION 4 OF THE SPECIAL PROVISIONS APPLICABLE TO COAL CONTRACTS (MARCH 9, 1951) TO PROVIDE THAT PAYMENT FOR COAL DELIVERED FROM MINE TO DESTINATION IN THE MANNER ADOPTED IN THE INSTANT CASE SHALL NOT BE MADE ON THE BASIS OF A WEIGHT GREATER THAN THAT INDICATED AT THE POINT OF ORIGIN OF THE SHIPMENT.