B-44354, OCTOBER 2, 1944, 24 COMP. GEN. 267

B-44354, OCTOBER 2, 1944, 24 COMP. GEN. 267

CONTRACTS - COST-PLUS - TRANSPORTATION AND TRAVELING EXPENSES OF CONTRACTOR'S EMPLOYEES - TRANSFERS UNDER A COST-PLUS-A-FIXED-FEE CONTRACT PROVIDING FOR REIMBURSEMENT OF EXPENDITURES INCURRED BY THE CONTRACTOR IN TRANSPORTING ITS EMPLOYEES, THEIR FAMILIES AND THEIR HOUSEHOLD EFFECTS TO OR FROM THE PLANT OPERATED UNDER THE CONTRACT, THE CONTRACTOR MAY BE REIMBURSED FOR TRAVEL AND TRANSPORTATION EXPENSES INCURRED IN TRANSFERRING A REGULAR EMPLOYEE, UPON COMPLETION OF HIS DUTIES IN CONNECTION WITH THE CONTRACT WORK, FROM THE PLANT TO HIS FORMER PLACE OF EMPLOYMENT WITH THE CONTRACTOR; HOWEVER, IN THE EVENT OF TRANSFER TO A PLACE OTHER THAN HIS FORMER PLACE OF EMPLOYMENT, REIMBURSEMENT MUST BE LIMITED TO THE COST OF RETURN TO SUCH FORMER PLACE OF EMPLOYMENT.

COMPTROLLER GENERAL WARREN TO LT. COL. W. GRITZ, U.S. ARMY, OCTOBER 2, 1944:

THERE HAS BEEN RECEIVED FROM THE FISCAL DIRECTOR, HEADQUARTERS, ARMY SERVICE FORCES, BUREAU VOUCHER NO. RR 2180, PROPOSING PAYMENT OF THE SUM OF $646.56, TO REMINGTON RAND, INC., A COST-PLUS-A-FIXED-FEE CONTRACTOR UNDER CONTRACT W-ORD-603, DATED FEBRUARY 17, 1942, AS AMENDED, WITH THE REQUEST THAT AN ADVANCE DECISION BE RENDERED AS TO WHETHER PAYMENT OF SAID VOUCHER IS AUTHORIZED.

THE NATURE OF THE ITEMS COVERED BY THE SAID VOUCHER AND THE PERTINENT CONTRACT PROVISIONS ARE SET FORTH IN A LETTER DATED AUGUST 15, 1944, FROM THE CHIEF ACCOUNTANT OF THE CONTRACTOR TO THE COMMANDING OFFICER OF THE SANGAMON ORDNANCE PLANT, AS FOLLOWS:

UNDER DATE OF AUGUST 7, 1944 FORM NO. 1100'S DATED JULY 27 WERE RECEIVED AT THIS FACILITY IN THE AMOUNTS OF $106.32 AND $13.84, AND ON AUGUST 10, 1944 AN ADDITIONAL FORM NO. 1100 DATED JULY 27 WAS RECEIVED AT THIS FACILITY IN THE AMOUNT OF $526.40 ALL OF WHICH AMOUNTS HAD BEEN WITHHELD BY THE FINANCE OFFICER ON SUBSEQUENT BUREAU VOUCHERS. COPIES OF THESE FORMAL SUSPENSIONS ARE ATTACHED HERETO. THESE AMOUNTS REPRESENT EXPENDITURES REIMBURSED TO MR. ELMER M. FINSTAD FOR TRAVELING EXPENSES FOR HIMSELF AND FAMILY AND MOVING EXPENSES OF HIS HOUSEHOLD GOODS FROM SPRINGFIELD, ILLINOIS, TO WASHINGTON, D.C.

REPRESENTATIVES OF THE GENERAL ACCOUNTING OFFICE AT THIS FACILITY HAD, PRIOR TO THE ISSUANCE OF THE FORMAL SUSPENSIONS NOTED ABOVE, TENDERED INFORMAL INQUIRIES NUMBERED 261 AND 303 UNDER DATES OF FEBRUARY 28, 1944 AND MAY 25, 1944 TO WHICH REPLIES WERE MADE ON APRIL 15 AND JUNE 1, 1944, RESPECTIVELY, COPIES OF WHICH CORRESPONDENCE ARE ATTACHED HERETO.

REFERENCE IS MADE TO THE PERTINENT PROVISION OF CONTRACT W-ORD-603 AS AMENDED WHICH READS AS FOLLOWS:

" ARTICLE IV-A--- REIMBURSEMENT FOR CONTRACTOR'S EXPENDITURES

"1. THE CONTRACTOR SHALL BE REIMBURSED IN THE MANNER HEREINAFTER DESCRIBED FOR SUCH OF ITS ACTUAL EXPENDITURES IN THE PERFORMANCE OF THE WORK UNDER THIS CONTRACT, AS MAY BE APPROVED OR RATIFIED BY THE CONTRACTING OFFICER, AND AS ARE INCLUDED BUT NOT LIMITED TO THE FOLLOWING ITEMS: * * * * * * * *

"D. TRANSPORTATION AND TRAVELING EXPENSES OF EMPLOYEES OF THE CONTRACTOR AS ARE ACTUALLY INCURRED IN CONNECTION WITH SUCH WORK; AND COSTS AND EXPENSES REIMBURSED TO EMPLOYEES OF THE CONTRACTOR TRANSFERRED TO OR FROM THE PLANT ON ACCOUNT OF TRANSPORTATION OF THEMSELVES, THEIR FAMILIES AND THEIR HOUSEHOLD GOODS.' (ITALICS SUPPLIED.)

PRIOR TO MR. FINSTAD'S TRANSFER TO SANGAMON ORDNANCE PLANT HE HAD BEEN AN EMPLOYEE OF THE PARENT ORGANIZATION FOR SOME TIME AND WAS TRANSFERRED TO SANGAMON ORDNANCE PLANT TOGETHER WITH SEVERAL OTHER KEY PERSONNEL OF THE COMPANY. DURING MR. FINSTAD'S TENURE OF EMPLOYMENT AT SANGAMON ORDNANCE PLANT FROM APRIL 1, 1942 TO DECEMBER 19, 1942, HE WAS ENGAGED IN THE CAPACITY AS MANAGER OF OFFICE AND RECORD PROCEDURES.

MR. FINSTAD'S DUTIES AS MANAGER OF OFFICE AND RECORD PROCEDURES CONSISTED OF DEVISING ACCEPTED PROCEDURES FOR ALL DIVISIONS AND DEPARTMENTS AND THE COORDINATION OF MINOR PROCEDURES EMANATING FROM DIVISIONS AND DEPARTMENTS TO THE EXTENT THAT EACH OF THESE PROCEDURES AFFECTED OTHER DIVISIONS. SEVERAL OTHER EMPLOYEES ALSO FROM THE PARENT COMPANY WERE ENGAGED IN THIS WORK UNDER MR. FINSTAD'S SUPERVISION.

IN DECEMBER, 1942 IT WAS DETERMINED BY THE COMPANY THAT THE WORK OF THE RECORDS AND PROCEDURES DEPARTMENT HAD PROGRESSED TO A POINT WHERE ALL BASIC AND IMPORTANT PROCEDURES HAD BEEN SUBSTANTIALLY COMPLETED AND THAT FUTURE WORK IN THIS DEPARTMENT WOULD BE LARGELY REVISION AND CORRECTION OF BASIC PROCEDURES ALREADY IN EFFECT. ACCORDINGLY, ALL THE DUTIES AND RESPONSIBILITIES OF MR. FINSTAD IN SO FAR AS RECORD PROCEDURES WERE CONCERNED WERE DELEGATED TO THE ACCOUNTING DIVISION AND OPERATED THEREAFTER WITH CONSIDERABLY REDUCED PERSONNEL. OTHER MINOR RESPONSIBILITIES NOT INVOLVING RECORD PROCEDURES WERE DELEGATED TO THE PERSONNEL DIVISION.

IT SHOULD BE BORNE IN MIND THAT MR. FINSTAD HAD SUBSTANTIALLY COMPLETED THAT WORK REQUIRED AT THE PLANT; THAT UPON COMPLETION OF HIS WORK IT WAS TO THE INTEREST OF THE UNITED STATES GOVERNMENT THAT HIS SERVICES AT THIS PLANT BE TERMINATED.

IN VIEW OF THE EXPLICIT LANGUAGE OF CONTRACT W-ORD-603 AFFECTING TRANSACTIONS OF THIS NATURE AS CITED ABOVE AND FURTHER, IN VIEW OF THE APPROVAL OF THE SUBJECT EXPENDITURES BY THE CONTRACTING OFFICER'S REPRESENTATIVE, BUREAU VOUCHER RR-2180 IS SUBMITTED HEREWITH FOR RECONSIDERATION TOWARDS REIMBURSEMENT.

IT APPEARS FROM THE PERTINENT PROVISIONS THEREOF, QUOTED IN THE CONTRACTOR'S LETTER OF AUGUST 15, 1944, THAT THE CONTRACT EXPRESSLY PROVIDES FOR THE REIMBURSEMENT OF EXPENDITURES INCURRED BY THE CONTRACTOR IN TRANSPORTING ITS EMPLOYEES, THEIR FAMILIES AND THEIR HOUSEHOLD EFFECTS FROM THE SANGAMON ORDNANCE PLANT TO THEIR FORMER REGULAR STATIONS WITH THE PARENT COMPANY UPON THE COMPLETION OF THEIR DUTIES IN CONNECTION WITH THE CONTRACT WORK, PROVIDED THE TRAVEL AND EXPENSES REIMBURSED BY THE CONTRACTOR TO ITS SAID EMPLOYEES ARE DULY APPROVED BY THE CONTRACTING OFFICER. THE PAPERS ACCOMPANYING THE VOUCHER HERE INVOLVED SHOW THAT THE EMPLOYEE IN QUESTION WAS EMPLOYED BY REMINGTON RAND, INC., AT THE TIME HE WAS TRANSFERRED TO DUTY AT THE SANGAMON ORDNANCE PLANT AND THAT HE WAS TRANSFERRED TO THE SAID ORDNANCE PLANT FOR THE PERFORMANCE OF FULL-TIME SPECIAL DUTIES WHICH WERE REQUIRED IN CONNECTION WITH CONTRACT NO. W-ORD- 603. HENCE, HE BECAME AN EMPLOYEE OF THE CONTRACTOR IN CONNECTION WITH THE PERFORMANCE OF THE INSTANT CONTRACT--- AS WAS CONTEMPLATED BY THE REFERRED-TO CONTRACT PROVISION PERTAINING TO THE REIMBURSEMENT OF TRAVEL EXPENDITURES. IT IS SHOWN FURTHER THAT, AFTER COMPLETING HIS ASSIGNMENT AT THE SANGAMON ORDNANCE PLANT, THE EMPLOYEE'S SERVICES THEREUNDER WERE TERMINATED AND THAT HE RETURNED TO THE PARENT ORGANIZATION TO ASSUME HIS FORMER DUTIES. ALSO, IT APPEARS THAT THE TRANSFER AND THE TRAVEL HERE INVOLVED WERE APPROVED BY THE CONTRACTING OFFICER AS NECESSARY AND INCIDENTAL TO THE PERFORMANCE OF THE CONTRACT. HOWEVER, THE RECORD CONTAINS NO DEFINITE EVIDENCE OR INFORMATION AS TO WHETHER THE EMPLOYEE HAD BEEN STATIONED IN WASHINGTON, D.C., AT THE TIME HE WAS TRANSFERRED TO THE SANGAMON ORDNANCE PLANT.

UNDER THE AFOREMENTIONED CONTRACT PROVISIONS, THE GOVERNMENT IS NOT OBLIGATED TO REIMBURSE THE CONTRACTOR FOR COSTS AND EXPENSES INCURRED ON ACCOUNT OF THE TRANSPORTATION OF AN EMPLOYEE, HIS FAMILY AND HIS HOUSEHOLD EFFECTS FROM THE PLANT IN AN AMOUNT EXCEEDING WHAT IT WOULD HAVE COST TO HAVE RETURNED SUCH EMPLOYEE TO THE PLACE AT WHICH HE WAS STATIONED AT THE TIME HE WAS TRANSFERRED TO THE PLANT. HENCE, PAYMENT OF THE FULL AMOUNT CLAIMED ON THE INSTANT VOUCHER IS PROPER IF IT BE SHOWN THAT THE EMPLOYEE IN QUESTION HAD BEEN STATIONED IN WASHINGTON, D.C., AT THE TIME OF HIS TRANSFER TO THE SANGAMON ORDNANCE PLANT OR THAT THE AMOUNT CLAIMED DOES NOT EXCEED WHAT IT WOULD HAVE COST TO HAVE TRANSPORTED THE SAID EMPLOYEE, HIS FAMILY AND HIS HOUSEHOLD EFFECTS TO THE PLACE AT WHICH HE ACTUALLY HAD BEEN STATIONED AT THE TIME OF HIS TRANSFER TO THE SAID PLANT, IF IT BE A PLACE OTHER THAN WASHINGTON, D.C. OTHERWISE, REIMBURSEMENT MUST BE LIMITED TO THE AMOUNT WHICH IT WOULD HAVE COST TO HAVE RETURNED THE EMPLOYEE TO HIS FORMER PLACE OF EMPLOYMENT.