Dear Mr.

Packwood I think Your plan is very good and I have a plan that was used before the ist world war that worked very good that you might consider

the plan worked like this

when the supplier deliverd the goods or supplies the receiveing agent signed the bilde- bill of lading or the invoice and the supplier takes it to the bank and the bank eashed the invoice less 2% and billed the department which handled the product for the goverment

this paid the bank 24% if the bill was paid within 30 days or 20% if paid in 60 days and tha is a good investment

I am not able to travel very much as I an 88 years old but I would like to talk with you as soon as possible I have a türeb sure solution for the energy problem I am working on an energy wheel that makes its own power and requires no fuel and if it works out it will solve the worlds anergy problem I will have it completed in about 60 days I hope

I am looking foward to hearig from you

96-385 - 77 - 17

5601 south broadway, suite 400

littleton, colorado 8012!

303 794-1818

KELLOGG CORPORATION

August 22, 1977

Senator Bob Packwood
The Capitol

Washington, D. C. 20510

Dear Senator Packwood:

Your name has crossed my desk twice in one day. First, your appearance on the cover of the Beta Theta Pi magazine of June, 1977 tells me we are fraternity brothers. Second, the article entitled "Federal Slow Pay Admitted" in the August, 1977 issue of Western Construction.

The work you are doing on the problem of Government Late
Payments is a very encouraging step in the right direction.
would appreciate receiving an update from your staff at the
appropriate time regarding the results of your work.

I

The Kellogg Corporation is a group of consulting engineers that provides engineering and management services to small construction companies. Almost without exception, our clients find themselves chronically plagued and impaired by the problem of Government Late Payments when they work on federal projects.

At last count, there were 1,099,000 construction firms in the
United States. Obviously, the vast bulk of these firms are in
the small business category and will benefit substantially when
the Government Late Payment problem is solved. Equally obvious--
the federal government will benefit from the solution in terms of
lower bid prices.

We are pleased to hear that another Senate Select Committee on Small Business will be held in Portland. When the Committee met on August 26, 1975, I testified at the hearing regarding the various payroll reports and certifications which are required on federally financed construction projects.

Since that hearing, we have seen no relief from the burdensome task of preparing these various payroll reports. However, we did have correspondence from Congressman Frank Horton, Chairman of the Commission on Federal Paperwork in May of 1976, in which he stated that a final report of the Commission will be completed in October of this year, and hopefully, after this report is made, some relief will be forthcoming.

In your August 1st letter you asked for opinions on Proposal No. 1, which would provide for interest paid to suppliers and contractors for amounts due if not paid within thirty days. It is our feeling that this proposal is a very good one, but we feel it should be taken a step further.

We have found that on most federal projects and particularly those under the jurisdiction of the Corp of Engineers, it will often take months to process a change order to the original contract. We are usually directed by a representative of the Corp to perform some additional work, either on a as quoted basis, or on a cost-plus basis. Our experience has been that even though we have been given a directive to proceed with the work, that it takes an unreasonable amount of time for the government to process their paperwork in order to have the change added to our contract, so that we may be paid for the labor and materials which we have already expended.

We would recommend that interest be allowed when such a delay as we have described occurs.

Senator Robert Packwood
August 18, 1977
Page -2-

Senator, I will be out of the state at the time of the August 26th hearing; and therefore cannot attend, but we did want our thoughts and recommendations to be passed along to you. We hope that our input might help ease the penalty that businesses pay when performing work for the Federal government.

TBA:mn
Dist:

TBA/S/COR/

Very truly yours,

ACE ELECTRIC COMPANY

13 Experien

T.B. Apperson

Controller

A CLEAN

RUG

IS A BEAUTIE

RUG

Aliyeh's

1516 S. E. DIVISION • 234-5495 PORTLAND, OREGON 97202

August 17, 1977

Senator Bob Packwood

P.O. Box 3621

Portland, Oregon 97208

Dear Senator Packwood:

I received a copy of your letter concerning the Federal governments
payment of invoices. We have always had a desire to do government
work, but we have never gone after this business because of our
knowledge of their slow payment of accounts and also the multitude
of forms that have to be filled out and the complexity of the forms.
If businesses were run the same way the Federal government is every-
one would be out of business today. If the government is interested
in working with business men, they should simplify their forms and
pay their bills within the 30 days limit the same as we are re-
quired to do. Using the excuse that the government has so many
programs and so much money involved in transactions, is no excuse.

I definitely feel that if a business man has to wait over thirty
days for payment of a bill, he is entitled to interest.

Thank you for giving me the opportunity to express myself.

Sincerely,

ATIYEH'S INC.

се барев

Edward Atiyeh

EA/er

CLEANING RUGS SINCE 1900