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pensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Government setting forth the provisions of this nondiscrimination clause.

(b) The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin.

(c) The Contractor will send to each labor union or representative of workers with which he has a collective-bargaining agreement or other contract or understanding, a notice to be provided by the Contracting Officer, advising the said labor union or workers' representative of the Contractor's commitments under this nondiscrimination clause, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

(d) The Contractor will comply with all provisions of Executive Order No. 10925 of March 6, 1961, as amended, and of the rules, regulations, and relevant orders of the President's Committee on Equal Employment Opportunity created thereby.

(e) The Contractor will furnish all information and reports required by Executive Order No. 10925 of March 6, 1961, as amended, and by the rules, regulations, and orders of the said Committee, or pursuant thereto, and will permit access to his books, records, and accounts by the Government and the Committee for purposes of investigation to ascertain compliance with such rules, regulations and orders.

(f) In the event of the Contractor's noncompliance with the nondiscrimination clause of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 10925 of March 6, 1961, as amended, and such other sanctions may be imposed and remedies invoked as provided in the said Executive Order or by rule, regulation, or order of the President's Committee on Equal Employment Opportunity, or as otherwise provided by law.

(g) The Contractor will include the provisions of the paragraphs (a) through (g) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the President's Committee on Equal Employment Opportunity issued pursuant to Section 303 of Executive Order No. 10925 of March 6, 1961, as amended, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the Contracting Officer may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Contracting Officer, the Contractor may request the United States to enter into such litigation to protect the interests of the United States.

29. Officials Not To Benefit

No member of or delegate to Congress or resident commissioner, shall be admitted to any share or part of this contract, or to any benefit that may arise therefrom; but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit.

30. Covenant Against Contingent Fees

The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this contract without liability or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.

31. Utilization of Small Business Concerns

(a) It is the policy of the Government as declared by the Congress that a fair proportion of the purchases and contracts for supplies and services for the Government be placed with small business concerns.

(b) The Contractor agrees to accomplish the maximum amount of subcontracting to small business concerns that the Contractor finds to be consistent with the efficient performance of this contract.

32. Utilization of Concerns in Labor Surplus Areas

It is the policy of the Government to place contracts with concerns which will perform such contracts substantially in areas of persistent or substantial labor surplus where this can be done, consistent with the efficient performance of the contract, at prices not higher than are obtainable elsewhere. The Contractor agrees to use his best efforts to place his subcontracts in accordance with this policy. In complying with the foregoing and with subparagraph 27(b) of this contract the Contractor in placing his subcontracts shall observe the following order or preference: (a) persistent labor surplus area concerns which are also small business concerns; (b) other persistent labor surplus area concerns; (c) substantial labor surplus area concerns which are also small business concern; and (d) small business concerns which are not labor surplus area concerns. 33. Buy American Act

In the performance of the work covered by this contract the Contractor, subcontractors, material men or suppliers, shall use only such unmanufactured articles, materials, and supplies as have been mined or produced in the United States, and only such manufactured articles, materials, and supplies as have been manufactured in the United States substantially all from articles, materials, or supplies mined, produced, or manufactured, as the case may be, in the United States. The foregoing provision shall not apply to such articles, materials, or supplies of the class or kind to be used or such articles, materials, or supplies from which they are manufactured, as are not mined, produced, or manufactured, as the case may be, in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality, or to such articles, materials, or supplies as may be excepted by the Secretary of the Interior under the proviso of Title III, Section 3, of the Act of Congress approved March 3, 1933 (U.S. Code, Title 41, Sec. 10b).

34. Modification

It is understood that in the type of research and development to be carried out under this contract, the progress of the work may from time to time require change or modification of procedures and other provisions of the contract as mutually agreed upon in writing by the Contracting Officer and the Contractor. 35. Consultation

The Contractor, when requested, shall consult with and advise the Contracting Officer or his authorized representative on any matters within the scope of this contract at such places and times as are mutually agreeable. The Contracting Officer or his authorized representative shall have access at all times to the work being carried out under the contract.

In witness whereof, the parties hereto have executed this contract the day and year first written above.

The United States of America, by

(Signed) D. L. MCKERNAN,

Director, Bureau of Commercial Fisheries,
Department of the Interior.

Pierre Laclede Fur Company,

(Signed) SYLVESTER G. LIPIC, President.


Correspondence from the Department of the Interior announcing consummation of the Fouke Fur contract and the hope of new research possibilities

NOTE.-Includes March 31, 1965, press release and invitation for research and development proposals; and May 7, 1965, press release announcing awarding of contract to Fouke Fur Co.


OFFICE OF THE SECRETARY, Washington, D.C., March 31, 1965.


U.S. Senate,

Washington, D.C.

DEAR SENATOR BARTLETT: There is enclosed for your information a copy of the Department's press release which announces the decision with regard to the contract for the processing and sale of Alaskan sealskins.

Sincerely yours,


JOHN A. CARVER, Jr., Under Secretary of the Interior.

[U.S. Department of the Interior News Release, March 31, 1965]


Secretary of the Interior Stewart L. Udall today announced decisions for continued processing, promoting, and selling Alaska sealskins for the account of the United States.

The Department has issued a letter of intent to the Fouke Fur Co., Greenville, S.C., which will be converted promptly into a definitive contract for a 5-year period ending April 1970. This contract award is based on the company's proposal filed in response to the Department's invitation of November 22, 1963.

Secretary Udall said: "None of the proposals received in response to our invitation fully satisfies all of the policy desires and expectation of the Department. After analysis, and consideration of many factors involving the broad public interest, we have concluded that the Fouke proposal is most economically advantageous to the Government, and provides the best avenue for continuity in the processing and marketing of sealskins."

Secretary Udall said that, under the proposed contract with the Fouke Fur Co., deliveries to the company would represent seven-eighths of the raw sealskins harvested during the years 1963 through 1967. The 1963 and 1964 harvests are currently stored in Seattle. Approximately 90,000 of these furs will be made available to the Fouke Fur Co. this spring for processing. Fur auctions by the processor will be authorized through the spring of 1970, thus providing 10 semiannual sales.

"The Department," said Secretary Udall, "continues to be concerned with the problem of improved processing and marketing techniques as well as the development of competitive know-how in the handling of sealskins. Therefore we are utilizing up to one-eighth of the sealskins retained by the Government for use in experimental processing and marketing contracts with other interested firms." The Department is inviting proposals from qualified firms capable of demonstrating a potential for producing high-quality luxury furs. Such contracts will be on a cost-incentive basis and will be limited in number according to the quantity of sealskins available for this purpose.

"We hope," said the Secretary, "that our invitation will generate sincere interest in the advancement of processing techniques and in the furtherance of this very valuable product. Revenues from this source are most important in furtherance of the international conservation program for fur seals. Such proceeds, moreover, are shared by the State of Alaska and are important to the economy of that State. Many considerations have prompted the actions which the Department is now taking. Significant among these are: (1) Continuity and stability in supplying fur seal market demands; (2) continuity in participation in sales proceeds by the State of Alaska; (3) desirability of expanding private industrial capabilities in fur seal processing; (4) provision through representative competition of improvements in processing, product diversification, and expanded markets; and (5) international interests of the United States as a participant in the treaty on conservation of fur seals and other pertinent international aspects."

The next sale of U.S. Government sealskins will be held on April 8 and 9, at which time the Fouke Fur Co. will sell at auction about 29,000 Alaska sealskins, of which about 22,000 will be sold for the account of the U.S. Government. The other 7,000 skins represent Japan's share of the sealskin harvest.

The Alaska fur seals return each summer to the Pribilof Islands in the Bering Sea to breed and bear their young. During this time, the Government harvests some 70,000 to 80,000 surplus young animals which are not required to sustain the total herd at a level between 1 to 2 million animals which has been determined to be the optimum.

The program for research and management is coordinated through the North Pacific Fur Seal Commission, an international body established by the treaty between the United States, Canada, Japan, and the U.S.S.R., for conservation of the North Pacific fur seals.

The March 31, 1965, letter from Under Secretary of the Interior John A. Carver, Jr., was sent to the following additional people:

Hon. Ernest Gruening, U.S. Senate.

Hon. Ralph J. Rivers, House of Representatives.

Hon. William A. Eagan, Governor of Alaska.

Hon. Strom Thurmond, U.S. Senate.

Hon. Olin D. Johnston, U.S. Senate.

Hon. Robert T. Ashmore, House of Representatives.
Hon. Edward V. Long, U.S. Senate.

Hon. Stuart Symington, U.S. Senate.

Hon. Frank M. Karsten, House of Representatives.

Hon. Leonor K. Sullivan, House of Representatives.

Hon. Richard H. Ichord, House of Representatives.

Hon. Paul H. Douglas, U.S. Senate.

Hon. Melvin Price, House of Representatives.

Hon. Oscar L. Chapman, Chapman & Friedman, 932 Pennsylvania Building, Washington D.C.

Mr. Mark O. Holloran, 1515 Clark Street, St. Louis, Mo.

Mr. Walter Schwartz, Schwartz & Kroinig, 150 West 30th Street, New York, N.Y.
Mr. C. B. Wilson, Commercial Department, British Embassy, Washington, D.C.
Mr. A. N. Pritzker, Superior Seal, Inc., 134 North LaSalle Street, Chicago, Ill.
C. W. Martin & Sons Ltd., Martin House, 68 Upper Thames Street, London
E.C. 4, England.

Mr. Sylvester G. Lipic, president, Pierre Laclede Fur Co., 9705 Highway 66,
St. Louis, Mo.

Mr. Lester Shapiro, Superior Seal, Inc., 4447 West Cortland Street, Chicago, Ill.



Washington, D.C., April 2, 1965.

U.S. Senate,

Washington, D.C.

DEAR SENATOR BARTLETT: In view of your interest in the award of the contract for processing Alaska sealskins, I am enclosing copies of the following: Departmental news release dated March 31, 1965; invitation for proposals for experimental processing of Alaska sealskins, dated March 31, 1965.

Sincerely yours,


(Signed) DONALD L. MCKERNAN, Director.

(Departmental news release of March 31, 1965, appears with above letter dated March 31, 1965.)


Washington, D.C., March 31, 1965.


To all fur processing firms or persons interested in providing services for research and development in processing U.S. Government Alaska sealskins and parts thereof, as outlined.

This invitation is a request for proposals issued pursuant to section 302(c) (11) of the Federal Property and Administrative Services Act of 1949, as amended [41 U.S.C. 252(c) (11)]; and any required determination and findings have been made. Negotiations will be conducted in accordance with the requirements of applicable provisions of the Federal Procurement Regulations (title 41, Code of Federal Regulations, subtitle A). The contracts to be awarded are authorized by the act of February 26, 1944 (58 Stat. 100, 16 U.S.C. 631a et seq.), as amended.

The Department of the Interior is seeking to contract with several contractors for experimental processing of Alaska sealskins and by this invitation desires to evoke representative competitive interest from business entities with provable experience, either of the proposer or of key personnel, in processing of luxury furs, to develop product improvement. The work shall include, but not be limited to:

(a) Improvement in dressing of the leather so as to impart those characteristics of the leather, such as suppleness, lightness of weight, strength, elasticity, odor, and "feel" which are essential to the manufacture and marketing of Alaska sealskins, while at the same time retaining or enhancing those characteristics of the fur which are demanded by the consuming public.

(b) Development of colors and improvement thereof in regard to luster, fastness, odor, and other characteristics important in the marketing of sealskins. (c) Improvement in shearing and other processing techniques.

(d) Development of new luxury fur products of a type not presently marketed. Proposals will be accepted from those firms which demonstrate a capability or potential for producing high quality luxury furs. Research and development of improvement in processing and dyeing techniques will be emphasized. Contracts for experimental processing will be negotiated with firms submitting acceptable proposals on a cost and incentive basis, with the Department furnishing a supply of raw sealskins. The Department will deliver the allotment of skins to the contractors cost free and will agree to defray the costs incurred by them in experimental processing. Allowable costs will be based initially on contractor estimates as reviewed in the Department and will involve acceptable cost categories and a tentative per-skin-cost ceiling. Sale on the finished skins will be accomplished through recognized auction houses approved by the Depart

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