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B-169300 1 (1971-04-23)

handle is hein.gao/gaobabkpx0001 and id is 1 raw text is: COMPOmUAgw GUNERAJ.. OW THC UNITED SrATES WAWIN rOt O.C. Ssa 6~93 00 APR 2 3 97 , Dear Senator Drooke: This is in response to your referral dated Harch 1., 19T1, with enclosure, recupsting our findlngs and views concerning a cument from Mr. Ronald ohen of Cambridge, Masachusetts. On the tasis of an article published in The New Repullic, Mr. Cohen urged you to do everything in your vower to see that the General Accounting Office fulfills its responsibilities concerning the Lockhe.d Alrcralt Cor- poration and the contract it has with the Air Force to produce %-5A aircraft. The article stated that the General Accounting Office had ac- quiesced to a plan proposed by the Department of Defense to absolve Lockheed of much of its contractual liability for cost overruns on the C-5A aircraft and other procurements. The article also indicated that the Department of Defense contemplated the use of Public Law 85-804 which provides authority to enter into contracts or to make amendments without regard to other provisiono of lqw relating to the making, performance, amendment, or 'dification of contracts whenever such action would facilitate the nagional defer.* The article ques- tioned the use of this law for Lockheed and stated that the legisla- tive history of Public 1.-w 85-804 indicated that it had been written to aid small defense contractors. The article also implied that the investigative efforts o, the General Accounting Office were being directed and controlled either by the Department of Defense or by the Chairmen of the Committees on Armed Services and Appropriations. Consequently, the Office was not fulfilling its responsibility of remaining independent of the execu- tive departments and investieuting all matters relating to the receipt, disbursement, and application of pubnic fands. Concerning the questJon of whether Puolic Law 85-80W4 is the proper vehicle for resolving Lockheed's problems on the C-5A aircraft contract with the Air F.rce, we have reviewed the legislative history of Public Law 85-804 and have concluded that the proposed action is riot precluded by the law and is within the intent of the legislative history. The floor debates of the law seem to nnswer in the negativt, the qaastion of -%'ether the act should be limited tc sr.a Ll claims. During 50TH ANNIVERSARY 1921- 1971 6' IS -7C(~

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