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T e Honorable TiIIIothy E. WirthIIIIIIIIIll llIIll!lllIIIIII
House of Repr: sentatives LM090788
K Dear Mr. Wirch:
In your . ]6, 1975, letter, you asked us to make a
Administration (LI{01;) staff study about allegations that
) the ow Cheaical Cor:oany's ,a . . 0, /, U ,
n I ..... ',tn a'g Rocfy nAats pl nt. Th
ERDA staff study--based on annu RDA audits, day-to-day
contract adiinistration activities, and a special ERDA audit
.iitO Selectei mierit salary incss are, proccdures tol wo,:d
jn a selectcd ]vayoff--concn- ,that :no bsIs S ,as found to
support an a-sumptien that Governwent funds were misuscd at
the Rocky Flats plant.
j_ fC c no 7, r -~r~' - J-_' .
spe c)Cia au.it into EI ct C. s1 . C t.- . ZI- anI I:-
We found no cvidence, 1.swer t t V.;,A had considcereu
wherl, er contractor cr~oees .,ivM+1l h- allowe to cori n:,
at ..n.. . c r L ain tr : irn r;g z fo(u -it r th- con.t aCzor !L.
anr.ounceo it no lonqer intenoc,, to r ar', in at Rocky F] at2
P, L, f1i i 3uis 1v zeu us thaz te rci s no written rol 2.y
cover r ., s ac a Z tustion Our r:.. ! 1,w o showed that the
.Dow Rocky Fl.ats division had charged about $600 of unallow-
able costs to ERDA; Dow subsequently rejiobursed ERDA for
these costs.
We dis.cussed thc preparton ot- thc ,taff renort with
ERDA officials at the Pocky Flat5 Are-a Office. wJe inter-
vl.wc:6LwOUE audi.tors who had. fur0 Thcd data for the report
and reviev.'ed their workpapeis ,,rc relzted Area Of ice records
supporting the facts and conclusions .n the staff report. W e
2.lso interviewed 7r. Ja:,es D. ielly, President, Local Union
8031, Unit.d Ste,-!woqkeis ol Ane'ica, Rocky Plats, concernano
comments to you on the stafL r.epcLt. le further dis-
cused iSsu ... idntified in~ tU+. sltf ro.iort with R.ocky ; ..
,i f Ori ci' and .... icd.c pe2t h division recors.
We briefed your office on the results, of our limited
evaluation. Information on t sCe s'ov of LRDA's audoit and
thie n ture of certain 0ost uhco ud oby Dow to the ERDA con-
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