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We agreed that this was a ticklish transaction because the contractor had installed the partitions. I suggested that the entire transaction be completely documented and be made available in the files.

I felt all the facts concerning the transaction were not brought out in the 10 to 15 minutes we discussed it. I did not tell him what action to take on the payment since I felt that was his decision to make and we had express instructions on the matter of advance decisions.

Before we left the premises, Mr. HornBostel, the Regional Counsel, spoke to me on the payment. He mentioned that there were cases like

this where the contractor was paid for his cost but without profit. We returned to our Regional Office and I informed Mr. Browne that Mr. Jay asked me for an opinion on the payment and that I had not given either an official or unofficial opinion on the propriety of the payment. We discussed advance decisions.

Statement from Jack G. Laughlin, supervisory auditor, Kansas City
Regional Office, to whom it may concern, March 31, 1960.

TO WHOM IT MAY CONCERN:

March 31, 1960

I, Jack Laughlin, Supervisory Auditor, Kansas City Regional Office, Field Operations Division, U. S. General Accounting Office, make the following voluntary statement concerning the meeting with Mr. Thomas Jay, Regional Commissioner, GSA, on January 22, 1960:

I participated with Mr. Pines in an exit meeting with Mr. Jay, Regional Commissioner, Kansas City, Missouri, pertaining to an audit of the Buildings Management Fund. At the close of the meeting Mr. Jay requested of Mr. Pines an opinion on some partitions installed in the Commodity Stabilization Service building. Mr. Pines stated that he could not give an opinion without referring to the Comptroller General's decisions Mr. Pines did not state that the U. S. General Accounting Office would bypass or not audit this partition transaction.

Exhibit 13--Revised Public Buildings Services Job Order BM-JO 60071, September 15, 1959

DLJ 1/11/59

Exhibit 14--Memorandum from Chief, Design Branch, General Services
Administration, to Chief, Buildings Management, November 18, 1959

Subject J.O. requests 624 lineal feet of 5'6" high metal movable
partitions. An engineer was detailed to gather data for specs
for this job and his dimensions show only 578 lineal feet of
partition.

Please advise which figure should be used in the specification.

Exhibit 15--Letter from Earl H. Lund, Regional Director, Public Buildings
Service, General Services Administration, to Henges Company, Inc.,
Kansas City, Mo., January 6, 1960.

Your proposal dated December 17, 1959, in amount of five thousand
seven hundred ninety three and 60/100 dollars ($5,793.60) is
accepted for New Movable Partitions at the Commodity Stabilization
Service Building, Kansas City, Missouri, in accordance with the
specifications therefor dated December 8, 1959, and Addendum No. 1
dated December 9, 1959 and acknowledged by you on your bid form.

Your special attention is called to attached "List of Instructions
for Execution of Contract" which is a part of this award and which
you must follow in executing your contract.

Completion 45 c. d. from date of receipt of notice to proceed

Assistant Commissioner, D&C Division, PBS, Washington, D. C.
Division Office File

Comptroller

dbgiven