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B-177501 1 (1973-08-01)

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                          WASHINGTON. D.C. 208  @  Brach,
                          RELEASED
   B-177501                                           1973

   The Honorable Ken Hechier                              a YC2
   House of Representatives

 ! Dear Mr. Hechler:

        Your letter of November 8, 1972, requested that we
   examine into several unanswered questions pertaining to a
   IA-a project to construc~J       1 9usng units at the
   Guantanamo Bay Naval Base, CubaJ. These questions centered
   around a disiutebetwee   the   me    tractor, Burns and
 , Roe Construction Corporation, and a painting subcontractor,
.  Mr. William Trautner.

        In an initial discussion with your office, it was
   agreed we would review two principal areas in the contract
   file:  (1) the status of the Navy's acceptance of the hous-
   ing units and (2) whether there were any indications of
   problems in the quality of workmanship on the housing units.
   In addition, we are providing some general information you
   later requested pertaining to a prime contractor's author-
   ity, under the Armed Services Procurement Regulation, to
   seize a subcontractor's equipment for nonperformance.

        We recently discussed our proposed report with your
   office to insure that we were being fully responsive to your
   inquiry and are including some additional information re-
   quested at that time. As also discussed, we are providing
   the information in this report without onsite verification.
   As agreed, we are not following our customary practice of
   obtaining agency comments because of the nature of the in-
   formation being provided and the fact that, during the re-
   view, we obtained oral and written agency comments concerning
   the specific aspects of the contract we were requested to
   look into. However, before releasing the contents of this
   letter you may wish to obtain comments from the prime con-
   tractor in view of the criticism herein of some of its
   operations.



                                9~ &q /0 L57 (

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