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BILL TO

INVOICE COPY

KJVOICE NO.

14741

PECO MANUFACTURING CO., INC. SHIPPING ORDER NO. 16550

4707 B. E. 17TH AVE. P. O. BOX 02156. PORTLAND, OREGON 97202 INVOICE LATE 5/16/77

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Please pay from this Invoice Statement only on request.

1% per month (equivalent to 12% per annum) may be charged on past due account: IT IS HEREBY CERTIFIED THAT THESE GOODS WERE PRODUCED OR THE SERVICES PERFORMED IN COMPLIANCE WITH ALL APPLICABLY! REQUIREMENTS OF SECTION 6, 7 AND 12 OF THE FAIR LABOR STANDARDS ACT, AS AMENDED, AND OF REGULATIONS AND ORDERS OF THE UNITED STATES DEPARTMENT OF LABOR ISSUED UNDER SECTION 14 THEREOF.

BILL TO

INVOICE COPY

PECO MANUFACTURING CO., INC.

INVOICE NO.

1512

CHIPPING ORDER NO. 249931

4707 0.8.17TH AVE. P.D. BOX.02156. PORTLAND, OREGON 07202 INVUICE DATE 6/21777

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SHIPPED VIA

F.O.D.

TERMS

SHIP LATL

359961-77-2-1317

593 PL

PECO

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Please pay from this Invoice - Statement only on request.

1% per month (equivalent to 12% per annum) may be charged on past due accounts IT IS HEREBY CERTIFIED THAT THESE GOODS WERE PRODUCED OR THE SERVICES PERFORMED IN COMPLIANCE WITH ALL APPLICABLE REQUIREMENTS OF SECTION 6, 7 AND 12 OF THE FAIR LABOR STANDARDS ACT, AS AMENDED, AND OF REGULATIONS AND ORDERS OF THE UNITED STATES DEPARTMENT OF LABOR ISSUED UNDER SECTION 14 THEREOF.

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I appreciate your efforts on behalf of the late payment problem in doing business with the Federal Government, As we indicated in the recent questionnaire, the slow payment problem has been a source of constant irritation in attempting to do business with the various governmental agencies in this area,

I favor your proposal #1 as a solution to the late payment problem and would hope that it would carry a policy recommendation of some sort for the agencies to take advantage of timely payments rather than exercising the prerogative of paying interest wherever timely payments were feasible.

We, operating as a smaller business, prefer not to be involved in the lending ess even when a legitimate interest charge is assessed, The additional man hours .... bookkeeping involved in keeping track of an interest rate for the governmental agencies would again be more than a nuisance factor as it would undoubtedly vary from the interest rate and service charge billed to regular customers, This differential takes the transaction out of the machine bookkeeping category and requires manual application to handle these special rates.

Occasionally we have run into instances to where numerous and elaborate material test requirements are demanded by governmental agencies, even though the end use of the product is such that no physical test properties would be required at all. Perhaps some thought could be given to utilizing the standard manufacturers' test reports for material procured and should additional testing be required, an allowance be made in the sale price to cover the additional cost of the testing. In some instances we find that the cost of testing certain small quantities of materials may amount to more than the profit margin of the sale itself. Because of this fact we have turned down many opportunities to supply small quantities of steel, pipe and related items.

Thank you for your consideration to this matter and your action on it.

Very truly yours,

AMERICAN STEEL & SUPPLY

John RB

John W. Keener
Manager

JWK: jes

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In regards to your letter dated 7/29/77 we wish to comment as follows:

We feel your proposals of adding interest would increase the paper work and only camouflage the real problem. If private enterprise is organized well enough to pay their bills in 30 days, it would seem the government could become more organized and efficient to do the same.

With more efficiency they could probably decrease the paperwork involved and also cut the cost to the taxpayers.

Very truly yours,

INDUSTRIAL ALLOY FABRICATORS INC.

A. Jensen

Allán Jensen, Pres.

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If you can get your proposal #1 or #2 accepted, remove the dead wood, unnecessary paper work and red tape, the construction contractors, federal projects, and the public in general will reap substantial benefits. I personally will not bid federal projects unless I'm very low on work. Its too costly to do business with the government.

When we wired the new post office in Tigard, it was several months after completion that we received our final check. We wired the Clackamas low cost housing project. We had to submit five copies of everything on the job, ie: every panel, circuit breaker, wire, box, fixture, conduit, lock nut, etc. This is absolutely ridiculous, time consuming, and costly.

I believe you should have a cut-off date for progress payment submittals on the 25th of the month. Payments should then be made on or before the 10th of the following month. With all the "sidewalk inspectors" the government has, they should not have any trouble processing checks in 15 days. If the present government employees are not capable of producing the progress checks on time, replace them with qualified personnel that can.

The general contractor, when making his draw, should include the amounts due his various sub-contractors, and then he should sign a voucher of some kind that his sub-contractors have been paid according to their monthly draw. Too many general contractors "live off of their subs" and withhold payment or pay only part of the progress payments due to the sub-contractors. This, of course, creates an undo hardship on the sub-contractor and in many instances, reduces the quality of his work or materials.

Yours truly,

FRAHLER ELECTRIC COMPANY

M. M. Grafley

W. M. Frahler

WMF:em

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