already in your possession. The reason for the Comptroller General's ruling that the company cannot be paid is that the company failed to comply with the requirements of the contract in that when change orders were issued under it, the company should submit an estimate of the increased price within 10 days of receipt of the change order. The late filing of the estimates is the only reason for rejection of the company's claim. The contract was a fixed-price form of ship-repair contract providing for the award of specific jobs on the basis of competitive bids submitted by contractors. The contract reserved to the Navy Department the right to make changes in the original plans and specifications, in which event the contractor is obligated to proceed at once with the performance of the work as changed, and provision is made for an equitable adjustment in the contract price. The contract provides that promptly upon receipt of a change order the contractor shall submit to the naval inspector an estimate of any delay and of any increase or decrease in the agreed price of performing the contract work resulting from such order. Unless such estimate shall have been submitted within 10 days of the receipt of such order, or within such further time as the naval inspector may allow, in writing, within said 10-day period, no increase in the contract price will be made and the completion date will not be extended. The reason for Central Machine Works' failure to submit the estimates within a 10-day period or request an extension of time for such submission within such period, was that after a strike had been called in this district, the Central Machine Works agreed to the strikers' demands in order to continue its ship-repair work uninterrupted. As a result Central Machine Works was one of the few repair yards in operation during the strike and the pressure of work almost exceeded its physical capacity, and as the sole aim was to put ships in service as soon as possible, it neglected its own interests in order to keep the ships moving. We believe that in the cause of equity and justice this claim should be paid and in this connection particular attention is invited to the Comptroller General's ruling No. B-61836 dated December 13, 1946, in the Harbor Boat Building case which is similar to the case of the Central Machine Works, and which resulted in relief being granted other shipyards in this area. We will be very pleased to furnish any further information, and wish again to emphasize the fact that it was the intention and the purpose to strictly comply with all requirements in the performance of the work, but getting the ships out came first. Yours very truly, CENTRAL MACHINE WORKS, ASSIGNMENT KNOW ALL MEN BY THESE PRESENTS: That the undersigned, John C. Williams, an individual operating under the fictitious name and trade style of Central Machine Works, with its principal place of business at 809 Fiftieth Avenue, in the city of Oakland, State of California (hereinafter called "assignor"), for and in consideration of the sum of $1.00 and other good and valuable consideration to it in hand paid, receipt of which is hereby acknowledged, has sold, transferred, assigned, and set over and by these presents does sell, transfer, assign, and set over unto Central Bank, a banking corporation organized and existing under and by virtue of the laws of the State of California, having its principal place of business at Fourteenth Street and Broadway, Oakland, California (hereinafter called "Bank"), its successors and assigns, any and all amounts now due or owing, or which may hereafter be or become due or owing or remain unpaid at any time or times from the United States of America, or from any department, agency, or commission thereof, to the assignor under and pursuant to the terms of a certain contract dated November 19, 1945, between the United States of America, Navy Department (Bureau of Ships) and the assignor, being contract number NObs10824, including all moneys due or which may hereafter be or become due or owing or remain unpaid at any time or times for extras or changes, or under any options exercise; by said Navy Department (Bureau of Ships), or under any other provisions of said contract. The undersigned constitutes and appoints the said bank, its successors and assigns, its true and lawful attorney, irrevocably, with full power of substitution for the undersigned and in its name to ask, require, demand, and receive of the said United States of America or from any agency, department or commission thereof, the said moneys herein assigned, and on nonpayment thereof to sue for, recover, and receive the same, and on payment thereof to give sufficient releases, receipts and discharges thereof. This assignment is made pursuant to the Assignment of Claims Act of 1940 and under the provisions of the aforementioned contract, and payments due under said contract and hereunder to said bank shall not be subject to reduction or set-off for any indebtedness of the assignor to the United States arising independently of the said contract; and the undersigned specifically authorizes and directs the United States of America to make such payments as and when due under said contract to said bank, as hereinabove provided. And the said assignor does hereby represent and warrant unto said bank that the undersigned has not heretofore alienated or assigned said contract or any rights or interest therein or thereto or to the payments due or to become due thereunder. IN WITNESS WHEREOF the undersigned has caused this assignment to be duly executed and attested this 11th day of April 1946. JOHN C. WILLIAMS, An individual doing business under fictitious name and trade style of Subscribed and sworn to before me this 11th day of April 1946, at Oakland, California. My commission expires May 23, 1948. C. M. GUESEMIR, Notary Public. NOTICE OF ASSIGNMENT To General Accounting Office, Washington 25, D. C. Date: April 11, 1946. Made by the United States of America (Navy Department Bureau of Ships) with Central Machine Works (John C. Williams, sole owner), 809 Fiftieth Avenue, Oakland 1, Calif., for repairs and alterations of vessels at San Francisco, dated November 19, 1945. PLEASE TAKE NOTICE that moneys due or to become due under the contract described above has been assigned to the undersigned pursuant to the provisions of the Assignment of Claims Act of 1940 (Public, No. 811, 76th Cong.), approved October 9, 1940. A true copy of the instrument of assignment is attached hereto. Payments due or to become due under such contract should be made to the assignee. Please return to the undersigned the three (3) enclosed copies of this notice with appropriate notations showing the date and hour of receipt and duly signed by the person acknowledging receipt on behalf of the addressee. Very truly yours, CENTRAL BANK Receipt is hereby acknowledged of the above notice and a copy of the above mentioned instrument of assignment. These were received on April 15, 1946, on behalf of CARLOS L. MERRICK (For Chief, Contract Section, General Accounting Office.) O ALVIN G. PATTON MAY 10, 1949.-Committed to the Committee of the Whole House and ordered to be printed Mr. BYRNE of New York, from the Committee on the Judiciary, submitted the following REPORT [To accompany H. R. 1297] The Committee on the Judiciary, to whom was referred the bill (H. R. 1297) for the relief of Alvin G. Patton, having considered the same, report favorably thereon with amendment and recommend that the bill do pass. The amendment is as follows: At the end of bill add: : Provided, That no part of the amount appropriated in this Act in excess of 10 per centum thereof shall be paid or delivered to or received by any agent or attorney on account of services rendered in connection with this claim, and the same shall be unlawful, any contract to the contrary notwithstanding. Any person violating the provisions of this Act shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in any sum not exceeding $1,000. The purpose of the proposed legislation is to pay the sum of $221.13 to Alvin G. Patton, Los Angeles, Calif.; such sum represents payment for 189 hours of accumulated annual leave earned by the said Alvin G. Patton while employed under contract N244s-37735, dated September 1, 1943, in the district security office, headquarters, Eleventh Naval District, San Diego, Calif., for the period beginning September 1, 1943, and ending June 30, 1944. STATEMENT OF FACTS It appears that Mr. Patton was employed by the Navy for approximately 9 months in the said district security office at the rate of $282 per month. During that period of time he accumulated 189 hours of leave which he did not receive. At the expiration of the 9 months period, June 30, 1944, the appropriation by Congress for persons employed in his status was discontinued and there was no ap propriation for the period following June 30, 1944. Since the leave had not been taken prior to June 30, 1944, and since there was no appropriation for it thereafter, Mr. Patton was unable to receive payment for his accrued annual leave upon termination of the contract of employment on June 30, 1944. The Judge Advocate General of the Navy states that the Navy Department interposes no objection to the enactment of the bill, therefore your committee recommends favorable consideration of the bill. NAVY DEPARTMENT, OFFICE OF THE JUDGE ADVOCATE GENERAL, Hon. EARL C. MICHENER, House of Representatives. MY DEAR MR. CHAIRMAN: The bill H. R. 2690 for the relief of Alvin G. Patton, has been referred by your committee to the Navy Department with request for a report thereon. The purpose of the proposed bill is to authorize and direct the Secretary of the Treasury to pay to Alvin G. Patton of Los Angeles, Calif., the sum of $221.13 representing payment for 189 hours of accrued leave, accumulated by said Alvin G. Patton while employed in the district security office, headquarters, Eleventh Naval District, San Diego, Calif. Alvin G. Patton was employed by the Navy for approximately 9 months in the said District Security Office at the rate of $282 per month. During that period of time he accumulated 189 hours of leave which he did not receive. At the expiration of the 9 months' period, June 30, 1944, the appropriation by Congress for persons employed in his status was discontinued and there was no appropriation for the period following June 30, 1944. Since the leave had not been taken prior to June 30, 1944, and since there was no appropriation for it thereafter, Mr. Patton was unable to receive payment for his accrued annual leave upon termination of the contract of employment on June 30, 1944. The Navy Department interposes no objection to the enactment of the bill H. R. 2690. The Navy Department has been advised by the Bureau of the Budget that there is no objection to the submission of this report to the Congress. For the Secretary of the Navy. Respectfully yours, O. S. COLCLOUGH, Alvin G. Patton, being first duly sworn, deposes and says: That he is a resident of the county of Los Angeles, State of California, of legal age and a competent witness: Witness further states that there is due him a total of 189 hours accumulated annual leave due him from the United States Navy Security, Eleventh Naval District, Los Angeles, Calif., and that the recompense for said number of hours is $221.13, which amount has not been paid. Address: 8715 Halldale, Los Angeles 44, Calif. ALVIN G. PATTON. Subscribed and sworn to before me this 14th day of December, 1945. |