B-84768, JUN 6, 1949

B-84768, JUN 6, 1949

PRECIS-UNAVAILABLE

LIEUTENANT COLONEL LOREN W. OLMSTEAD, DISBURSING OFFICER:

THERE HAS BEEN RECEIVED BY REFERENCE FROM THE OFFICE OF THE CHIEF OF ENGINEERS YOUR LETTER OF JANUARY 27, 1949, FILE REFERENCE MRHVB, TRANSMITTING A VOUCHER IN THE AMOUNT OF $438.80, STATED IN FAVOR OF PRAIRIE AIRWAYS, INC., UNDER CONTRACT NO. W-25-075-ENG-9089, DATED SEPTEMBER 29, 1948, WITH THE REQUEST THAT AN ADVANCE DECISION BE RENDERED AS TO WHETHER PAYMENT THEREON IS AUTHORIZED.

THE CONTRACT PROVIDES, GENERALLY, THAT THE CONTRACTOR WILL FURNISH A FLIGHT CREW AS DIRECTED AND SELECTED BY THE CONTRACTING OFFICER AND WILL OPERATE FOR THE GOVERNMENT ONE DC-3 AIRCRAFT, AT THE SOLE DIRECTION OF THE CONTRACTING OFFICER, TO AND BETWEEN SUCH POINTS AND PLACES AND AT SUCH TIMES AND UNDER SUCH CONDITIONS AS MAY FROM TIME TO TIME BE DESIGNATED BY HIM IN CONSIDERATION OF THE REIMBURSEMENT BY THE GOVERNMENT OF THE CONTRACTOR'S EXPENDITURES AS DEFINED IN THE CONTRACT.

THE AMOUNT OF THE VOUCHER REPRESENTS CLAIM FOR REIMBURSEMENT OF THE COST OF SHIPMENT OF HOUSEHOLD GOODS AND PERSONAL EFFECTS OF JULES H. AUSTIN, AN EMPLOYEE OF THE CONTRACTOR, FROM RIDGEWAY, NEW JERSEY, TO OMAHA, NEBRASKA. ARTICLE 2 OF THE CONTRACT PROVIDES, IN PERTINENT PART, AS FOLLOWS:

ARTICLE 2. COMPENSATION TO THE CONTRACTOR. THE GOVERNMENT SHALL PAY THE CONTRACTOR UPON THE SATISFACTORY PERFORMANCE OF THE SERVICES CALLED FOR UNDER THIS CONTRACT, AS FOLLOWS:

"(K) SUCH OTHER ITEMS AS SHOULD IN THE OPINION OF THE CONTRACTING OFFICER BE INCLUDED IN THE COST OF THE MAINTENANCE AND OPERATION OF THE AIRCRAFT. WHEN SUCH AN ITEM IS APPROVED OR RATIFIED BY THE CONTRACTING OFFICER, IT SHALL BE SPECIFICALLY CERTIFIED AS BEING ALLOWABLE UNDER THIS ARTICLE."

IN A MEMORANDUM DATED JANUARY 13, 1949, THE CONTRACTING OFFICER STATES THAT AT THE TIME THE INSTANT CONTRACT WAS ENTERED INTO, MR. AUSTIN WAS EMPLOYED AS A CO-PILOT BY THE WILLIS AIR SERVICE OF TETERBORO, NEW JERSEY, UNDER CONTRACT NO. W-30-082-ENG-7659 WITH THE CORPS OF ENGINEERS; THAT MR. AUSTIN AND THE CONTRACTING OFFICER THAT HIS SERVICE AS CO-PILOT WOULD BE IN THE NATURE OF A TRAINING PERIOD AND THAT HE WOULD LATER BE DESIGNATED AS THE PILOT OF ANOTHER AIRCRAFT SOON TO BE OPERATED UNDER ANOTHER CONTRACT; AND THAT MR. AUSTIN WAS EMPLOYED BY PRAIRIE AIRWAYS, INC., PURSUANT TO THIS UNDERSTANDING. IT IS STATED FURTHER THAT SINCE THE AIRCRAFT WHICH PRAIRIE AIRWAYS, INC., HAD CONTRACTED TO OPERATE FOR THE GOVERNMENT WAS UNDERGOING MODIFICATION AT TETERBORO, NEW JERSEY, IT WAS NECESSARY TO HAVE MR. AUSTIN COMMENCE SERVICE THERE IN ORDER TO MAKE "RECOMMENDATIONS FOR REQUIRED MAINTENANCE, REPAIR AND MODIFICATION OF THE AIRCRAFT TO THE CONTRACTING OFFICER" AS REQUIRED BY ARTICLE 1(D) OF THE CONTRACT. FOR THESE REASONS THE CONTRACTING OFFICER HAS CERTIFIED THAT REIMBURSEMENT FOR MOVEMENT OF HOUSEHOLD GOODS FOR MR. AUSTIN IS ALLOWABLE UNDER ARTICLE 2(K) OF THE CONTRACT.

IN FURTHER SUBSTANTIATION OF THE CLAIM THE CONTRACTOR, IN LETTER OF DECEMBER 30, 1948, ATTACHED TO THE VOUCHER, STATED, IN EFFECT, THAT IT IS ITS PRACTICE TO PAY THE MOVING EXPENSES OF NEWLY EMPLOYED PERSONNEL TO PLACE OF PERMANENT DUTY.

IN VIEW OF THE FACT THAT THE CONTRACTING OFFICER DIRECTED THE CONTRACTOR TO EMPLOY AND ASSIGN MR. AUSTIN TO TEMPORARY DUTY AT TETERBORO, NEW JERSEY, PENDING MODIFICATION OF THE AIRCRAFT PRIOR TO REPORTING FOR PERMANENT DUTY AT OMAHA, NEBRASKA, AND HAVING REGARD FOR THE CONTRACTOR'S STATED PRACTICE OF PAYING EXPENSES OF THE NATURE HERE INVOLVED, IT APPEARS THAT THE COST OF TRANSPORTING MR. AUSTIN'S HOUSEHOLD GOODS TO OMAHA, NEBRASKA, PROPERLY MAY BE REGARDED AS AN ITEM OF EXPENSE CHARGEABLE TO THE CONTRACT WORK. IN VIEW THEREOF AND SINCE THE CONTRACTING OFFICER HAS SPECIFICALLY CERTIFIED THE EXPENDITURE INVOLVED AS BEING ALLOWABLE UNDER THE ABOVE-QUOTED TERMS OF ARTICLE 2(K) OF THE CONTRACT, THIS OFFICE IS NOT REQUIRED TO OBJECT TO REIMBURSEMENT THEREOF TO THE CONTRACTOR.

ACCORDINGLY, THE VOUCHER, TOGETHER WITH THE SUPPORTING PAPERS, IS RETURNED HEREWITH, AND YOU ARE ADVISED THAT PAYMENT THEREON IS AUTHORIZED, IF OTHERWISE CORRECT.