Exhibit 22--Memorandum from James L. HornBostel, Regional Counsel,
General Services Administration, Kansas City, Mo., to John Moore,
February 4, 1960.

SUBJECT: Commodity Stabilization Service, Kansas City, Missouri-
PB-JO 60071

3

5

6

'This has reference to your questions of February 3 pertaining
to the above numbered contract and of your request that my replies
be confirmed by memorandum.

Contract PB-JO 60071 was not approved for legal sufficiency, reference my Routing Slip of January 14. Memorandum To the File of January 26 from Regional Director, PBS, confirms that no work will be performed under said contract. Payment thereunder will be for work previously and "voluntarily" accomplished by contractor.

In my opinion, the partitions are personal property. If they are
real property or a part of the building, no payment could be had.
To illustrate, should a person without contract, authority or
"voluntarily" paint a house or install a roof on a third person's
house the recipient of the benefits would not be obligated under
the law to pay for them.

If personal property similarly delivered to one is returned to
sender, there is no obligation to pay for it. If said personal
property, however, is retained, needed or used by one, the law
implies an obligation to pay for it on the theory of quantum merit.
During the conferences of January 21 and 22 I advised, in my opinion,
that payment could not be made by the Regional Office but by the
Comptroller General on a quantum merit basis; and, that contractor
could not receive a profit on its unauthorized act of installing the
partitions. Contractor is charged with knowledge of the law pertain-
ing to authority of Government contracting officers.

aforesaid memo

The contractors who called Mr. Jay (par. 4, page 3,
randum of January 26) were O'Brien and either Hastings or Hauserman.
Competitive prices in December could be less or greater than in July.
The specifications are ambiguous and also do not show where the
partitions shoud be installed in the building. As the contract is a
job requiring Payment and Performance Bonds it is necessary that
prevailing rates of wages be paid to laborers, etc. The contractor

Mr. John Moore

must submit certified payrolls to the contracting officer before payment is made under contracts over $2,000.00. No payrolls could be submitted for work done pursuant to subject contract.

It was

The GAO representative (par. 4, page 4) is Mr. Sam Pines.
stated by Mr. Jay and Mr. Stacy that GAO would not audit said
contract when GAO made a check of the Regional Office. I did not
submit the matter to the General Counsel (par. 3, page 4). I
do not recall in the conference of January 22 anything mentioned
about collusion or fraud (par. 2, page 4). However, in the con-
ference of January 21 I stated to Mr. Lund that the facts he then
made known could be interpreted by others as contrary to the
interests of the Government but that I was not making such charge
or allegation.

When Mr. Jay said he did not agree with my opinion (par. 1, page 5),
I stated that the facts should be placed in the file (par. 3, page 4)
and that as far as I was concerned no further action was required
of me.

ކ

Knowledge of subject installation of partitions first came to my
attention when either Mr. Arganbright or Mr. Stacy showed me an
invoice signed by Mr. Collins (numbered par. 3, page 1) and a
memorandum to Mr. Lund from the Comptroller inquiring of 3 or 4
other negotiated contracts (which I believe each were over $2,500.00).
It was not until January 21 that I became apprised of all the facts
stated in Mr. Lund's memorandum of January 26.

It remains as my opinion that only the Comptroller General may author-
ize payment for said partitions. I believe that I have covered
the questions and answers requested but, if not, or should there be
others, please advise.

I understand that after you have further reviewed the files of
Negotiated Sub-Lease GS-06B-5599 with Third Recon Corporation
that you may require written answers to questions. Regional
Counsel approved said sub-lease for form and legal sufficiency
November 24, 1959.

James L. Hornbbatal

James L. HornBostel

Regional Counsel

Exhibit 23--Correspondence and documents relating to job order 60078

UNITED STATES DEPARTMENT OF AGRICULTURE

COMMODITY STABILIZATION SERVICE

Commodity Office

560 Westport Road Kansas City 41, Missouri September 18, 1959

025

Mr. Joseph R. Collins

Area Manager

General Services Administration

Federal Office Building
Kansas City 6, Missouri

Dear Mr. Collins:

This letter will confirm your discussion with Mr. Moran of this office relative to installing new temporary type office partitions in our building.

As per your advice funds have been obligated in the amount of $1785 to cover the cost of installing and painting. This amount agrees with the bid you received for this work.

Billing should be made to this office upon completion of the job.

Very truly yours,

Donald E. Smith, Director

September 18, 1959

Mr. E. D. Moran

United States Department of Agriculture

560 Westport Road

Kansas City, Missouri

Dear Mr. Moran:

We will furnish and install and finish, painting by our own contractor, the temporary partitions of rail height 5'6" with 15' of glass obscure to match existing partitions of this type in the building for the sum

It is understood that all work shall be done during regular working hours, namely 8:00 a.m. to 4:30 p.m., Monday through Friday.

We are fully covered by Workman's Compensation and Public Liability Insurance. We reserve the right to withdraw this quotation if not accepted within fifteen days.

We wish to thank you for the opportunity of quoting on the above installation. Should there be any further questions please do not hesitate to contact me.

SUBJECT: Installation of New Temporary Type Office Partitions 560 Westport Road, Kansas City, Missouri

Attached is a letter of request concerning installation of new movable
type partitions in the offices of Commodity Stabilization Service of
U. S. Department of Agriculture at the above location. Director Donald
E. Smith advises that funds have been obligated to reimburse G.S.A. for
the work requested.

The partition changes requested are the result of the major expansion of the subject offices, necessitating relocation of many office units and isolating others.

Also, attached is a proposal by Henges Company in the amount of $1,785.00
to furnish and install bank type partitions, 240 lineal feet, located
on the second floor of the above building. The new partitions are to
match existing partitions that were installed by Hanges Company.

I recommend that a Job Order be issued to cover this expenditure.

Attachments 2