e are clearly on record with documented costs per the DD-633-6 Form presenting our costs. These costs are certified as correct by our Controller. The contract clearly provides for the audit up to 3 years after completion and obligates us to promptly return any funds the audit may require. From our point of view we have been forced to grant an interest free loan to the Government since the original unit was delivered, and then to extend an increased amount of money dating from 30 days after shipment of the optional unit. We would request that you amend your proposal such that it specifically addresses prompt payment of final invoicing. Respectfully yours, W. K. Hallmark W. L. Hallmark WLH/rv EST. 1921 Bingham-Willamette Company A DIVISION OF GUY F. ATKINSON COMFANY We have again reviewed the documents attached to KAPL Purchase Order 73-2011-UL following our discussion last week. BWC considers that the order requires KAPL to make full payment [including profit] in accordance with the current target price of each item when that item is completed. This is provided for by Incentive Price Revision, Article 66, Paragraph [f]. We submit that payment upon completion ci an item justifies an interim payment under this paragraph. Article 67 in our opinion is not in any way applicable since it deals with progress payments only. Article B, liqundation, is under the broader heading [Progress Payments] and is only, applicable to progress payments. We can sign and return Amendment #17 if you wish; however, we still feel obligated to pursue KAPL's prompt payment of the balance of the funds due us for each item as completed $160,000 more upon shipment of PUSC #1 than Amendment 117 woule allow. some We will appreciate your early advice concerning Amendment #17 as we expect to ship within the next few days and are most anxious to get the maximum cash flow that can be cleared immediately. Thanks for your help in this matter. Very truly yours, BINGHAM - WILLAMETTE COMPANY a Division of Guy F. Atkinson Company With Adlmark ふか W. L. Hallmark BWC Nuclear WLH/rv We are again having an unexpected delay in cash flow and ask your assistance. We had expected to have a change order issued from KAPL establishing the final price within a couple of weeks after Our presentation of costs on DD633, and that our invoice in excess of $500,000 would be honored within thirty days at most. We have been advised that KAPL is not in position to issue this change order until after receipt of a DCAA Audit Report, reconciliation and some internal processing. Even with KAPL assistance in expediting all phases, this appears to result in July payment at best. We have reviewed the purchase order and can find no basis for such a delay. Custom, or internal procedures at KAPL may require these events, but ynless we made an error in review of the order requirements there is no such requirement. It is our belief that Article 66 (d) is applicable and KAPLis deficient in not having issued an appropriate change order. "(d) Price Revision. Upon submission of the data required (1) On the basis of the information required by allocable to the supplies delivered (or services (2) The total final price shall be established by an amount for profit or loss as set forth in the (3) The total final price of the items of the order (1) insofar as the parties may agree in writing, (11) to the extent any adjustment or credit is or any other article of this order." We call your attention to the fact that there is no requirement Our DD633-6 was submitted under date of March 22, 1977. Could you arrange to have the required change order issued and the funds released promptly? 1 |