300 Reporter's Statement of the Case approved in writing by the head of the department or his duly authorized representative. 8. On June 1st and 3rd, 1942, plaintiff entered into an agreement with the Nebraska Building Supply & Lumber Company of Omaha, Nebraska, to furnish the lumber necessary for the contract work and furnished the said company an application for Preference Rating A-1-a. 9. The Modification Center was in the form of a large hangar 351 feet 11 inches long and 160 feet wide, with a vertical clearance of 28 feet above the floor. At the sides were additional structures for work rooms, offices, etc. The building was to house airplanes being equipped for combat service and it was necessary for the roof of the hangar section to be supported over the entire span of the width without intervening walls or pillars. Due to the scarcity of steel the trusses spanning the width of 160 feet were to be constructed of wood. There were nineteen of such trusses and it was necessary that the material for their construction contain a minimum of moisture since the plans contemplated that the lumber of the trusses be glued together. 10. Shortly after the execution of the agreement with the Nebraska Building Supply & Lumber Company for the required lumber, that company found that it would be unable to supply such lumber in the required quantities due to the condition of the market. Thereupon the plaintiff requested of the defendant's contracting officer permission to purchase the required material through the defendant's Central Procurement Agency, an agency set up by the defendant to bring together various suppliers of lumber and purchasers of lumber for Government projects. This permission was given and the contract with the Nebraska Building Supply & Lumber Company was cancelled. 11. Pursuant to the latter agreement plaintiff sent a representative to Portland, Oregon, and secured bids through the Central Procurement Agency from ten lumber suppliers for all the lumber required on the project. Orders were placed with said suppliers pursuant to said bids. 12. The deliveries of lumber purchased through the Central Procurement Agency were slow in arriving at the site of the project and it became apparent to defendant's con Reporter's Statement of the Case 113 C. Cls. tracting officer that the completion of the project would be delayed if progress awaited such deliveries. The contracting officer thereupon instructed plaintiff, without cancelling its previous orders through Central Procurement Agency, to procure lumber from other sources wherever possible, even though such action resulted in duplicate orders. 13. Under date of July 3, 1942, the contracting officer wrote a letter to plaintiff in words and figures as follows: This will confirm yesterday's telephonic instructions relative to issuance of purchase orders to lumber vendors in accordance with the Purchase Allocation, dated June 20, 1942. The contractor's copy of the Purchase Allocation was delivered to you by messenger on July 2, 1942. It is important that purchase orders to each of the ten vendors be issued promptly. One copy of each purchase order should be forwarded to this office for file. With further reference to delivery of your truss lumber this will confirm today's telephonic advice that approximately 190,000 F. B. M. of structural lumber (2′′ x 6" in 12' to 20′ lengths) have been rerouted from Cheyenne, Wyoming, for delivery to your job. The District Engineer has made this change in order to permit prompt fabrication of trusses for the Modification Center. One car of this shipment is now being reloaded at Cheyenne and delivery may be expected in the near future. Other cars should follow promptly. Delivery of the above structural lumber is not to alter issuance of your purchase orders as outlined in the first two paragraphs of this letter. It is anticipated that any surplus lumber which results from the delivery of 190,000 F. B. M. will be disposed of by the U. S. Govern ment. 14. On July 11, 1942, the contracting officer wrote the following letter to the plaintiff: Under your contract No. W-643-eng-2873, you are authorized to purchase structural lumber as follows from the Hughes Lumber Company of Seward, Ne braska: 300 Reporter's Statement of the Case It is understood that this is all select material and is in stock. The order need not be limited to these quantities if more is available. In the event your cost should exceed comparable material costs under central procurement, you will be reimbursed by change order for the difference involved upon presentation of properly certified invoices. 15. Again on July 14, 1942, the Ärea Engineer wrote to the plaintiff as follows: The division office of the United States Engineer Corps have contacted the Union Pacific in the person of their Mr. Fries, General Purchasing Agent, and have found that this company is willing to sell you 130 pieces of 6" x 16" x 22' long timbers and 100 pieces of 6" x 16" x 30' long timbers. These are your instructions and your authorization to purchase these timbers at once from the Union Pacific Railway Company for your job. You will be reimbursed under your item of central procurement for the cost of this lumber as evidence by paid invoices which you submit with your estimates. You are requested to advise at once this office tomorrow what you have done about arranging with the Union Pacific and in consummating this project. 16. On July 24, 1942, the Area Engineer wrote the plaintiff as follows: Your two letters of July 23, 1942, in which you set forth certain purchases of lumber verbally authorized by the Area Engineer, have been received. Under your Contract No. W-643-eng-2873, you are authorized to purchase all lumber as listed in your letters, at the approximate unit prices set up therein. It is understood that this lumber is to be purchased from the Badger Lumber Company, Inc., and the Schutte Lumber Company, both of Kansas City, Missouri. Grades as listed in your letter may be substituted for specified grades, except that the No. 2 yellow pine will not be used as structural members, nor will it be used in building areas where it will be exposed to the weather. Upon presentation of properly certified invoices you will be reimbursed for any difference in costs for comparable material above Central Procurement prices by appropriate change order. Reporter's Statement of the Case 113 C. Cls. This authorization is given in order to expedite construction of the Modification Building, because the specified materials are not immediately available. 17. On July 27, 1942, the contracting officer wrote plaintiff as follows: This will confirm this officer's verbal instructions to you to purchase your lumber for the modification center building on the open market in Kansas City or from Hughes Brothers at Seward or elsewhere. Inasmuch as the central procurement orders have not arrived, and inasmuch as it is absolutely imperative that we purchase lumber elsewhere outside of the central procurement at once in order to keep your job going, these orders and authorizations are given you. The 6" x 14""'s which you are short shall be fabricated by Hughes Brothers at Seward of smaller material as arranged Sunday, July 26, 1942, for delivery next week. Inasmuch as the government is ordering you to purchase this lumber out (in some cases even having the heavier timbers fabricated); necessitating the payment of higher prices for lumber than you anticipated under central procurement; a change order will be issued to your work refunding you the excess difference between the central procurement prices for lumber and the prices you are having to pay for this lumber. Thus, you will not be hurt financially by these orders, making you purchase at once wherever you can get these items. The central procurement lumber will not be canceled. It will be allowed to come; and when it does come, the government will take it over and reimburse you according to paid invoices. 18. The Area Engineer on August 27, 1942, again wrote plaintiff as follows: Reference is made to your letter of August 7, 1942, submitting a copy of your purchase order No. 160 to Dierks and Sons Lumber Company, Kansas City, Mis souri. Purchase of the two cars of lumber is approved. All costs (except as outlined below), in excess of the cost of lumber purchased on inquiry No. 55761 will be eligible for reimbursement by the Government. 'Inquiry No. 5576 refers to the purchases through the Central Procurement Agency. 300 Reporter's Statement of the Case In connection with the item of 64 pieces (4" x 14" x 26′), lumber which was used by Busboom and Rauh, contractors at Fort Crook, it is requested that settlement be made directly with the user for cost of the lumber F. O. B., Fort Crook, Nebraska. Such lumber will not be eligible for reimbursement under this method of settlement. 19. The contract work was accepted by the defendant November 6, 1942, as of October 14, 1942, whereupon the question of final settlement was for determination, including the proper amount payable to plaintiff by reason of its compliance with the directions embodied in the letters referred to in Findings 13 to 18, inclusive, hereinabove. 20. There was a disagreement between the contracting officer and the plaintiff as to the correct amount of the adjustment. The plaintiff claimed in the neighborhood of $25,000 and the contracting officer's figure was approximately $15,000. Thereupon a conference was held between the parties and an agreement was reached for an adjustment in the sum of $17,363.27, itemized as follows: 21. Pursuant to said agreement the plaintiff wrote a letter to the defendant, for the attention of the contracting officer, requesting a change order in such amount, itemized as shown. Pursuant thereto such change order was drawn by the contracting officer and signed by both parties. A final settlement based thereon was submitted to the plaintiff and 838936-49- -25 |