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092415 1 (1972-03-07)

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Cormnndling Conoral

U.S. Theatro Arry Support

  Ccmmand, Europe

AR) U.S. Forcon 090U)


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      During our curtont survey of prpcurent   activities in Europo, wo

 loolked into nosted  Acpects of thotcontracts awardod to tho Shipping

 and Coal Corpan  (chipco) for delivery of coal from the United Sttate

 to V.13. Forces nh Europe. These contracts are avardo4 and administered

 by the U.S. Army Procurcment Centor, Europe (USAP.:).  The nurvey has

 disclosed a situation wohich vo believe varrants or.mand attantion to

 enuro  that U.13. interests aro beat served. oPertinent dotuils of this

 situation are diocuosed below.



      The coal contracts provide that the contractor in to purchaco cool

 in the United Statos and deliver it to U.8. Forco  in Suropo using

 venola  provided by the Iilitary Soalift Co.mand (3C).   These voonolc

 aro.onbitorod from coz:orcictl concerns for a cpecitied period of tiro

 or by voyacous  Considering the econamis  of this arranerment, it i

 irperative that the contractor load and unload the veonsola inthe

 chrittest puoible time, - Tard  that end,  CC has rccommxiended, and

 UZAME  had included in the contracts a provision requiringj the contrctor

 to load an.4 unload the voanol with utmoct dippatch. This is dftined

 in the contract a4 a cccbincd loading and unloading timo for not more

 than oix days (Saturdays, Bundays, and-tolidaya included). Time uzed

 by the contractor in excea  of the six days i   erorrcd as nxcenuive

 layti.e and should result in the coatraotor reinursing th' United States.



      The contractor incurrod oxcessivo laytime for shipments durinS both

 (local yours 197  and 1972.   DC ;provided U3A1E uith documentation

 showing exconuive loytime to oupport a clai againot the contractor for

 $508,000 under tho Fl 71 contract. Rathor than submit a clailt, hbowever,

 USAWE personnel provided ?CIs  schedule of excosoivo laytino to the

 contractor in September 1971'for his evaluation and .ccsoants. Ie replied

 In October 1971 that In every case, the reasons for the lonZ 1.¶.ytie

 were not his fault, rIo claincd that the delays wore caucod by such things

'As (1) close arrivals of vessela (2) nonavailability of barges because.


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