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B-193657 1 (1979-06-08)

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COMPTHOLLER GEtRAL OF TtiE UNITED  TATES
         WASItIIKTON. D.C. £0518


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The Ilonorable
United Staten


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                                    8 1979


!lunryti . ,Jauhson
,Sonate


Pear Senator jac)sonu


     Via refer to your letter of l oveber 30, 19711,
concerning the oliri of yoir  onntituent, Warren,
little ond Lund, Inc. (ITh&h) for additional compen-
nation for waqe esaat.on conta as a 0ubcontractor
on the Grand.Coulee Dan Third Powerplant projoct.
As your staff has beer advised, it nwan necessary
to request a troportrand pertinent doounentattoni
from the agency involved, the latent of which was
receivotd on tiny 0, 1979.

     The roeotd indicates tht. on November 20, 11973,
the prino contractor, s or anlflvceor Contracting
Engineers (Wtl), entored into acointra. ,wiwth the
united Stateq DOpartment of the Intoz4i4, Puroau of
Raclapiation (Duroau,), for the coitrutlonof'.the
Crar! Coulo POm, Third Powerplank', Palaraph 143.7.
of the contract spccifications provided for adjustments
for ohangon in the cost of labor, to CQZVAence 1,year
after the date oil contract award, with tho Government
paytng 75 percent of any Increase in nuch costs. In
addiion, subpar; graph 1,3.7a, provided that no. ndjunt-
rnont would be made becaune of incroatocl vdagos pa.d by
any uubcontractor unlean the contractor furnishes
ovidonqe that he agreed, as a part of the subcontract
nootiations, to reimburno the subcontractor for the
payment of ouch increased wages,
     The subcontract agreement between Wl3 ,and WL&L
did not contain a specific provision permitttng adjust-
mrn t  ecause of imireaed labor coot nor did it
refer to paragraph 1.3,.7 After requenting an adjustment
for aiother nubcontraotor in November 1975, r16) was notified
thht the fluroau would not make the adjustment because thu
)uroau did not find .iny rnferencc to paragraph 1.3.7,
or the conditions establishod by that paragraph, in thv
subcontrant a qreement. W&10 responded to thluro joction


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