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B-180182 1 (1974-05-16)

handle is hein.gao/gaobaaemn0001 and id is 1 raw text is: RELEASED ESTRICTED. Not to be released outside the qneral__ ____ ~ccoI~t~lg ffic ex~3t ,i he basis of specific / by the OWOurabQPrW@KAWa HEUN S WASHINGTON. D.C. aals B-180182 MAY 161974 O9 2 , -i The Honorable Vance Hartke United States Senate Dear Senator Hartke: This is in response to your November 29, 1973, request that wei a ecurrent contract with ICI America, Inc., for operation of the-Indiana Army Ammunition Plant (IAAP), . , --Charlestown, Indiana. Also, you asked that we provide certain documents related to Army contracts for operation of IAAP and a summary of Government contracts awarded to ICI America. The records you requested would require reproducing a large number of documents. The Army Armament Command offered to furnish a summary of the circumstances leading to the axard of the current cont GIt to ICI America in- stead of reproducing t e6 cuments. Your office agreed to accept the Army's offer. Your office also agreed that our audit of the current contract would be limited to identifying the additional costs borne by the Government because of labor-management difficulties at IAAP. On March 29, 1974, we delivered to your office a summary prepared by the Armament Command and a list of contracts awarded to ICI America which we extracted from Department of Defense and Army records. SUMMARY As of February 1974, ICI America had been paid about $652,100 for costs incurred due to labor problems at IAAP. Of this amount, $423,800 was for various costs, including legal services associated with a strike during September and October 1972. Additional legal costs are anticipated. The remaining $228,300 represents our estimate of additional labor costs incurred by ICI America due to (1) a production slowdown and (2) increased union business conducted on company time. 1___)A t17#-L 0(7*o7q~g

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