B-128503, AUG. 17, 1956

B-128503, AUG. 17, 1956

TO ADLER'S METAL WORKS:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 22, 1956, REQUESTING REVIEW OF THE ACTION TAKEN IN SETTLEMENT DATED OCTOBER 8, 1953, WHEREIN YOU WERE CERTIFIED TO BE INDEBTED TO THE GOVERNMENT IN THE AMOUNT OF $1,945.79, REPRESENTING COSTS INCURRED IN REPAIRING DEFECTIVE EQUIPMENT FURNISHED THE CATALYTIC CONSTRUCTION COMPANY, PHILADELPHIA, PENNSYLVANIA, A PRIME CONTRACTOR OF THE ATOMIC ENERGY COMMISSION UNDER PURCHASE ORDER AEC3000- 3054, DATED APRIL 7, 1952.

THE RECORD SHOWS THAT ON APRIL 7, 1952, CATALYTIC CONSTRUCTION COMPANY ISSUED THE SUBJECT PURCHASE ORDER WHICH YOU ACCEPTED, WHEREBY YOU AGREED TO FURNISH F.O.B. FERNALD, OHIO, VARIOUS SIZES OF MONEL SPOOL PIECES IN ACCORDANCE WITH THE TERMS AND CONDITIONS SPECIFIED THEREIN. THE SPOOL PIECES WERE DELIVERED, AND DURING ASSEMBLY OF THESE ITEMS IN THE FIELD IT WAS NOTED THAT THE CONDITION OF 32 SPOOL PIECES WAS SUCH THAT IT WAS NOT POSSIBLE TO MAKE GOOD CLOSURES DUE TO POROSITY IN THE TONGUES AND GROOVES. IN ADDITION, SOME OF THE UNITS WERE NOT PROPERLY MACHINED ON THE BACK OF THE TONGUE AND GROOVE FLANGES AS REQUIRED BY THE CONTRACT, MAKING IT IMPOSSIBLE FOR THE SLIP FLANGES TO PULL UP EVENLY. ALSO THE TONGUE WIDTH ON ONE UNIT WAS 1/8 INCH UNDERSIZE. YOU WERE ADVISED ON JANUARY 29, 1953, OF THE DEFECTS IN THE EQUIPMENT, AND YOU AUTHORIZED THEIR RETURN FOR EXAMINATION AND REPAIR.

THE RECORD FURTHER SHOWS THAT ON APRIL 1, 1953, CATALYTIC CONSTRUCTION COMPANY'S INSPECTORS, WHILE AT YOUR PLANT INSPECTED THE SPOOL PIECES AND FOUND THAT NONE OF THE ITEMS HAD BEEN REWORKED TO CONFORM TO THE SPECIFICATIONS. SINCE THESE PARTS WERE URGENTLY NEEDED, AND SINCE THE NECESSARY REPAIRS COULD BE ACCOMPLISHED IN THE FIELD YOU WERE DIRECTED TO RESHIP THE REJECTED ITEMS TO THE PROJECT SITE. THE REPAIRS WERE MADE FOR THE PRIME CONTRACTOR BY THE GEORGE A. FULLER COMPANY AT A COST OF $1,945.79, AND THEREAFTER THE UNPAID ACCOUNT WAS ASSIGNED TO THE GOVERNMENT.

YOU NOW STATE THAT THE UNITS WERE FABRICATED IN CONFORMITY WITH THE SPECIFICATIONS AND THAT THE DEFECTS WERE NOT THE RESULT OF POOR WORKMANSHIP BUT RATHER WERE CAUSED BY ROUGH AND IMPROPER HANDLING, CAUSING NICKS AND CRACKS. SUCH ALLEGATIONS ARE NOR SUPPORTED BY THE RECORD. OPPOSED THERETO ARE THE STATEMENTS OF THE CONTRACTORS INVOLVED, AND CONFIRMED BY THE ADMINISTRATIVE OFFICE, TO THE EFFECT THAT ALL OF THE DEFECTS WERE CLEARLY THE RESULT OF IMPROPER OR INCOMPLETE MACHINE WORK. AS PREVIOUSLY STATED, THE COMPLAINTS RELATED TO DEFECTIVE TONGUES AND GROOVES, NO MENTION BEING MADE OF NICKS OR CRACKS IN THE UNITS, AND THEREFORE IT SEEMS APPARENT, DUE TO THE NATURE OF THE DEFECTS, THAT THEY WERE THE RESULT OF FAULTY PROCESSING RATHER THAN DUE TO CARELESS HANDLING.

OF COURSE THE GENERAL ACCOUNTING OFFICE WAS NOT A PARTY TO THE CONTRACT AND THEREFORE MUST RELY UPON THE WRITTEN RECORD SUBMITTED BY THE ADMINISTRATIVE AGENCY INVOLVED, AND BY YOU. IN THE ABSENCE OF EVIDENCE LEGALLY SUFFICIENT TO OVERCOME THE CORRECTNESS OF THE REPORT FURNISHED BY THE ATOMIC ENERGY COMMISSION WE HAVE NO ALTERNATIVE BUT TO ACCEPT THE STATEMENT OF FACTS AS REPORTED BY THE ADMINISTRATIVE OFFICE. IN SIMILAR CASES WHERE CONFLICTING REPORTS HAVE BEEN MADE IT HAS BEEN THE UNIFORM RULE OF THE ACCOUNTING OFFICERS OF THE GOVERNMENT TO BE GUIDED BY THE ADMINISTRATIVE RECORD.