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B-174409 1 (1972-04-11)

handle is hein.gao/gaobaagml0001 and id is 1 raw text is: / V -9 2' - ~ &62 ,~. B-174409 . .... LM096603 , Dear Senator Cranston: As requested by your letter of October 20, 1971, we have examined into the circumstances surrounding threecontracts : awarded to the James A. Hill, Demolition Contractors, Los Angeles, California, by the Los Angeles District of the Corps of Engineers. Our inquiry included discussions with Corps and ert-ct--r-fficials and an examination of available records. In his October 5, 1971, letter to you, the contractor claimed that actions taken by certain Corps personnel resulted in a breach of contract. He claimed also that these actions constituted harassment and possible racial prejudice and in- cluded an unreasonable 30-day delay in making progress payments on two contracts. The contractor claimed further that the delay impaired his ability to --efficiently perform further under the contracts and --pay his employees and creditors. The information we obtained showed that the difficulties were due to contractual problems and concern by the Corps that the contractor would not satisfactorily complete the required work. As a result of the several problems encountered, the Corps did delay progress payments and the contractor did ex- perience financial difficulties. There was evidence that this contractor, as in the case of other small contractors, did not have sufficient capital to carry him through the contract pe- riod. These matters are discussed in greater detail below. The three contracts awarded to the James A. Hill, Demoli- tion Contractors, were part of a group of contracts for the demolition and removal of residences and buildings damaged dur- ing the February 1971 earthquake in the Los Angeles area. Pertinent data on the three contracts follows. I BEST DOCUkEifT AVAILABLE 0)WOS

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