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092407 1 (1972-03-17)

handle is hein.gao/gaobacwho0001 and id is 1 raw text is: - - 'A' r- ~\ ~ 2~ 2AM ~ -leCOu~ MAR 17 1972 Lt. General William J. McCaffrey Denuty Commanding General United States Army, Vietnam APO San Francisco 96375 LM092407 Dear General McCaffrey: In connection with our recent inquiry into alleged incorrect payments to Ly Hai Stevedoring Company for stevedoring services in Vietnam, we reviewed contract payments to Thanh Loi Stevedoring Company which replaced Ly Hai at the Cat Lai Ammunition Terminal. The problems associated with the Ly Hai contract (payments for unnecessary barge gangs and dual compensation for removal of dunnage) ha-e not prevailed under the Thanh Loi contract; however, increased costs have been incurred because of work stoppages and the contractor has overbilled for detention payments due as a result of these stoppages. Effective July 1, 1971, the Army of the Republic of Vietnam (ARVN) assumed operational control over the Cat Lai Ammunition Terminal. Tugs and other equipment to operate the terminal were transferred to the ARVN. However, because ARVN has not provided adequate tug support for the ammunition discharge/loading operation, the contractor's work crews have been unable to work on occasions for considerable periods of time. The work stoppages have resulted in detention charges by the stevedoring contractor totaling over $196,000 as of December 21, 1971. The contract provides that Thanh Loi receive detention payments at a fixed rate of VN$ 2,360 per hour for each ship's hatch that cannot be discharged or loaded for reasons beyond his control. The contract also provides that Thanh Loi receive a fixed rate per man per hour for extra labor ordered by the contracting officer. 17w UNITED STATES GENERAL ACCOUNTING OFFICE INTERNATIONAL DIVISION FAR EAST BRANCH 1833 KALAKAUA AVENUE HONOLULU, HAWAII 96815

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