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B-175485 1 (1973-07-03)

handle is hein.gao/gaobaacwu0001 and id is 1 raw text is: 



            /COMPTROLLER GENERAL OF Trt UNITED STATES
   . . 4:. ,*,<                  WASHINGTON. D.C. Ij.n4tg



       B-175485                           July 3, 1973



       Davidson, Drantnan and Schwartz
       The Uestminater Building
       110 South Dearborn Street - Suite 1020
       Chicago, Illinois  60603

             Attention: David Davidson, Esquire      BNIL

       Gentlemen:

             We refer to your letter dated November 14, 1972 and subsequent
       correspondence witten on behalf of the O'Briea flachine Company in
       which you request that the withholding of sums due your client under
       various contracts be stopped and that your client be paid for ull
       sums properly invoiced by hin for materials delivered.

             The follo-ing facto P reported by the Defense Supply Agency,
       and ulich do not aprear to be in dispute, serve as relevant back-
.      ground infornation for consideration of thiu case.

             On October 20, 1967, George C. O'Brien and the O'Brien Gear and
       !achic& Company were supoendcd from contractin, %with the Department
       of Defense rcr thre years by the Defense Supply Anency (DSA) upon
       raccipt of in 'er.ntion that O'Brien Gear and ?Machine Company had
       furnished the Covaru.i .nt a faloified ;artificate of tasting in the
       performance of n :covornment contract. Subsequently, a fifteen count
       indictment wras ree trnd arainst O'Brtcn and O'frien Gear and Ifachine
       Cornany on Janutry 30, 1969, in tha U. So Diatrict Court for the
       'ort'arn Distrc,- of Illinois, Eastern Division. To protect the
       interest of the Government, fundo due O'flrien Gear and ,!achine Company
       were i,$.thhold by DSA anA theflilitarv Departmonto.

            On Januar} .19, 1972, thelRenegotiation Board entered an order do-
       torInIr.e that 0'Erien Gear and i!achiue Company realized e:cessive pro-
       fits in the anount of $250,000.00 for it& fiscal yeat ending September 30,.
       1.067. Pursuant r:o Section 109 of the Renesotiation Act of 1951, an
       amended, 50 U.S.C. App, 1218, O'Brien Gear and ichino Company tiled a
       potition in the Court of Claims seeking a radaternination of the P.enego-
       tiction Board's Order (Ut, Cls. f'o. 105-72). On October 27, 1972,
       inacausch as O'Drien Gear rnd achirne Cor'psny bad not pooted A bond to
       attCy o-:acution of  the Donrd'n order, jttdrienant vaon entcrnd in tha
       Cn~c.vrr:t'a   a    t-ihe n.t r.onnttof %157,4Z2.55 (# o'$250,0%1*5.0O
       lossaan C:: cr.. of $,fI 567Is).        in satfaction of ths
       jut.lrennt that thc Vthoeld!ng in qu ltion wns offectad.


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