MAY 13, 1922, 1 COMP. GEN. 659

MAY 13, 1922, 1 COMP. GEN. 659

SUPPLEMENTAL CONTRACTS A SUPPLEMENTAL CONTRACT BASED UPON THE SUBSTITUTION OF A SMALL AMOUNT OF MATERIAL OF A CHARACTER DIFFERENT FROM THAT IN THE ORIGINAL CONTRACT AND INCREASING THE PRICE MORE THAN 250 PERCENT IN LIEU OF CANCELING THE ORIGINAL CONTRACT AND ADVERTISING FOR NEW BIDS IS IN VIOLATION OF SECTIONS 3709 AND 3744, REVISED STATUTES, AND PAYMENT OF THE INCREASED PRICE IS NOT AUTHORIZED.

COMPTROLLER GENERAL MCCARL TO MAJ. E. O. HOPKINS, UNITED STATES ARMY, MAY 13, 1922:

I HAVE YOUR LETTER OF APRIL 29, 1922, REQUESTING A DECISION AS TO YOUR AUTHORITY TO PAY A VOUCHER IN AMOUNT OF $5,625, IN FAVOR OF THE WITTEMAN AIRCRAFT CORPORATION, COVERING THE FIRST PARTIAL PAYMENT ON CONTRACT OF FEBRUARY 6, 1922, WHICH CONTRACT IS SUPPLEMENTAL TO A CONTRACT DATED JUNE 30, 1921, THE DOUBT AS TO THE AUTHORITY FOR MAKING PAYMENT ARISING FROM THE PROVISIONS OF THE SAID SUPPLEMENTAL CONTRACT WHICH ARE STATED AS IMPOSING OBLIGATIONS UPON THE GOVERNMENT NOT AUTHORIZED BY THE ORIGINAL CONTRACT AND THEREFORE WITHOUT CONSIDERATION.

ARTICLE 1 OF THE CONTRACT OF JUNE 30, 1921, PROVIDES:

THE CONTRACTOR HEREBY AGREES TO SELL TO THE GOVERNMENT AND THE GOVERNMENT HEREBY AGREES TO PURCHASE ONE (1) SET COMPLETE CONTROL SURFACES FOR ZODIAC AIRSHIP IN ACCORDANCE WITH AIR SERVICE DRAWINGS NOS. 1831, 1832, 1833, 1834, 1835, 1836, 1837, 11838, 1839, 1840, 1841, 1842, AND 1843, AS SET FORTH IN AIR SERVICE ORDER NO. 520135 * * *.

* * * THE AMOUNT OF ANY INCREASE OR DECREASE IN THE PRICE OR COMPENSATION SHALL BE DETERMINED BY A BOARD CONSTITUTED AS PROVIDED FOR IN ARTICLE V HEREOF.

ARTICLE 4 OF THE CONTRACT OF JUNE 30, 1921, PROVIDES:

FOR THE FAITHFUL PERFORMANCE OF THE TERMS OF THIS CONTRACT THE GOVERNMENT HEREBY AGREES TO PAY TO THE CONTRACTOR THE SUM OF EIGHT THOUSAND SEVEN HUNDRED AND FIFTY DOLLARS ($8,750.00).

ARTICLE 5 OF THE CONTRACT OF JUNE 30, 1921, PROVIDES:

* * * THE AMOUNT OF THE SAME SHALL BE DETERMINED BY A BOARD OF THREE MEMBERS SELECTED AS FOLLOWS: ONE MEMBER TO BE SELECTED BY THE CONTRACTOR, ONE MEMBER BY THE CONTRACTING OFFICER, AND A THIRD BY THESE TWO. DECISION AGREED TO BY A MAJORITY OF THE SAID BOARD SHALL BE THE DECISION OF THE BOARD AND SHALL BE FINAL ON ALL QUESTIONS ARISING UNDER THIS ARTICLE.

A COMMUNICATION, BEARING DATE OF JANUARY 30, 1922, ATTACHED TO THE SUPPLEMENTAL CONTRACT, STATES: WITTEMAN AIRCRAFT CORPORATION,

HASBROUCK HEIGHTS, NEW JERSEY.

GENTLEMEN: REFERENCE IS MADE TO AIR SERVICE ORDER NO. 520135, PLACED WITH YOUR COMPANY JUNE 28, 1921, FOR CONTROL SURFACES FOR ZODIAC AIRSHIP.

THE CHIEF OF AIR SERVICE AUTHORIZES THAT INASMUCH AS IT IS TO THE INTEREST OF THE GOVERNMENT TO SUBSTITUTE DURALUMIN TUBING INSTEAD OF STEEL TUBING AS ORIGINALLY CALLED FOR, AND, AS YOUR COMPANY HAS AGREED TO SAME AT A TOTAL COST OF $22,500, OR AN INCREASE OF $13,750, SAID PRICE BEING APPROVED, THAT ABOVE ORDER BE AMENDED TO PROVIDE FOR THE SUBSTITUTION OF DURALUMIN TUBING, AND READ AS FOLLOWS:

1 SET COMPLETE, CONTROL SURFACES FOR ZODIAC AIRSHIP, IN ACCORDANCE WITH AIR SERVICE DRAWINGS ALREADY FURNISHED YOUR COMPANY, WITH THE EXCEPTION THAT DURALUMIN TUBING IS TO BE USED INSTEAD OF STEEL; CHANGES TO BE IN ACCORDANCE WITH BLUEPRINTS ATTACHED HERETO AND MADE A PART OF THIS AMENDMENT ----------------------------------- $22,500.00

THE FOLLOWING ITEMIZED LIST SHOWS THE ACTUAL COST OF MATERIAL AND LABOR FOR THE CONSTRUCTION OF THE ZODIAC CONTROL SURFACES:

CHART A. MATERIAL:

1. DURALUMIN TUBING---

3/4 O.D. X .042, 1,280 FT.

1 INCH O.D. X .042, 80 FT.

1 3/16 INCHES O.D. X .042, 240 FT.

1 3/4 INCHES O.D. X .042, 20 FT.

1 3/8 INCHES O.D. X .042, 530 FT.

TOTAL 400 POUNDS, AT $2.20, INCLUDING FREIGHT -------- $880.00

2. LYNITE CASTINGS FOR JOINT FITTINGS, 160 POUNDS, AT

$1.80, DELIVERED HERE ----------------------------------- 288.00

3. PATTERNS FOR ABOVE, 20 REQ-D., AT $20.00 EACH ----------- 400.00

4. WIRES, TINNED AIRCRAFT---

.081 D, 220 FT.)

.102 D, 650 FT.)

.128 D, 350 FT.) AVERAGE 1 1/2 CENTS PER FT. ----------- 25.00

.144 D, 500 FT.)

5. TURNBUCKLES---

NO. 326 L.F., AT $2.40 EACH, 120 REQ-D ---- $228.00

NO. 328 L.F., AT $2.60 EACH, 120 REQ-D ---- 312.00

------- 600.00

6. THIMBLES AND FERRULES---

1/16 INCH, 100 REQ-D, AT .02)

1/8 INCH, 300 REQ-D, AT .03 ( -------------------------- 15.00

3/16 INCH, 100 REQ-D, AT .04)

7. WIRE TERMINAL LUGS, C.R.S. ------------------------------- 5.00

8. BOLTS, NUTS, RIVETS, ETC. -------------------------------- 100.00

9. PLYWOOD---

1/8, 3 PLY BIRCH 8 PANELS, 3 INCHES X 7 INCHES (

5/32, 3 PLY BIRCH, 12 PANELS, 3 INCHES X 7 INCHES) 25

CENTS FT. --------------------------------------------- 105.00

10. SPRUCE, 300 FT. SELECTED --------------------------------- 50.00

11. CORD, TAPE, ETC. (FOR LASHED JOINTS) --------------------- 50.00

12. LACQUER, VARNISH, ETC. ----------------------------------- 75.00

13. LUMBER FOR ERECTING FRAMES AND SHIPPING CRATES, 2,000 FT.

COMM. YELLOW PINE --------------------------------------- 150.00

14. STEEL, ETC. FOR MAKING NECESSARY TOOLS TO MACHINE

CASTINGS, ETC. ---------------------------------------- 100.00

TOTAL COST OF MATERIAL ------------------------------- 2,843.00

-------- B. ENGINEERING:

1. 1,000 HOURS AT CURRENT RATE $3.00 (OF WHICH ABOUT

$1,000.00 HAS ALREADY BEEN EXPENDED) ------------------- 3,000.00

-------- C. LABOR:

HRS.

1. CUTTING TUBES AND BENDING ---- 600

2. MAKING TOOLS ----------------- 1,000

3. MACHINING CASTINGS ----------- 1,200

4. MAKING MISCEL. FITTINGS ------ 1,100

5. ASSEMBLY OF METAL PARTS ------ 2,100

6. ASSEMBLY OF WIRES ------------204

7. MAKING FIN BASES AND FILLERS - 750

8. ASSEMBLY OF WOOD ------------- 1,000

9. VARNISHING AND PAINTING ------ 80

10. CRATING AND LOADING ---------- 100

DIRECT LABOR, TOTAL ------- 8,134 HRS., AT ?75/HR. 6,100.00 OVERHEAD AT 100 PERCENT ---------------------------------------- 6,100.00

TOTAL COST OF LABOR

----------------------------------12,200.00 THE TOTAL AMOUNT,

INCLUDING ALL THE PRECEDING ITEMS, AMOUNTS TO:

18,043.00 PROFIT AT 25 PERCENT ------------------------------------------ - 4,500.00

GRAND TOTAL ----------------------------------------- 22,543.00

IN CONSIDERATION OF THESE CHANGES BEING MADE FOR THE CONVENIENCE OF THE GOVERNMENT, PAYMENT IN THE AMOUNT OF $22,500.00 UNDER THIS ORDER WILL BE MADE, AS FOLLOWS: 25 PERCENT OF CONTRACT PRICE TO BE PAID WHEN IT HAS BEEN DECIDED BY THE ARMY INSPECTOR THAT THE MATERIAL IS 25 PERCENT COMPLETE; 25 PERCENT WHEN 50 PERCENT COMPLETE; 25 PERCENT WHEN 75 PERCENT COMPLETE; AND THE REMAINING 25 PERCENT TO BE PAID UPON FINAL COMPLETION AND ACCEPTANCE.

INASMUCH AS DELIVERY HAS NOT BEEN MADE WITHIN THE REQUIRED TIME, DUE TO THE CHANGES AS DESIGNATED ABOVE, THE TIME FOR DELIVERY IS HEREBY WAIVED, BUT SAME MUST BE MADE WITHIN A REASONABLE TIME, WHICH THE GOVERNMENT DEEMS TO BE ON OR ABOUT MAY 1, 1922.

IF YOU FIND THAT DELIVERY CAN NOT BE COMPLETED BY DATE ABOVE SPECIFIED, YOU ARE REQUESTED TO ADVISE THIS OFFICE AT LEAST FIVE DAYS PRIOR TO THE EXPIRATION OF SAID EXTENDED TIME LIMIT.

VERY RESPECTFULLY,

R. M. JONES,

MAJOR, AIR SERVICE, CHIEF, PROCUREMENT SECTION.

THE SUPPLEMENTAL CONTRACT DATED FEBRUARY 6, 1922, PROVIDED:

AIR SERVICE--- UNITED STATES ARMY.

SUPPLEMENTAL CONTRACT.

THIS SUPPLEMENTAL CONTRACT, MADE AND CONCLUDED THIS THE 6TH DAY OF FEBRUARY, 1922, BY AND BETWEEN THE WITTEMAN AIRCRAFT CORPORATION, A CORPORATION TRANSACTING BUSINESS AT HASBROUCK HEIGHTS, NEW JERSEY (HEREINAFTER CALLED THE "CONTRACTOR"), PARTY OF THE FIRST PART, AND THE UNITED STATES OF AMERICA (HEREINAFTER CALLED THE "GOVERNMENT"), REPRESENTED BY R. M. JONES, MAJOR, AIR SERVICE, UNITED STATES ARMY, ACTING BY AUTHORITY OF THE SECRETARY OF WAR, PARTY OF THE SECOND PART.

WHEREAS, HERETOFORE, TO WIT, ON THE 30TH DAY OF JUNE, 1921, A CONTRACT IN WRITING KNOWN AS CONTRACT NO. 7283, AND HEREINAFTER REFERRED TO AS THE "ORIGINAL CONTRACT" WAS ENTERED INTO BY AND BETWEEN THE CONTRACTOR AND THE GOVERNMENT, REPRESENTED BY C. G. HALL, COLONEL, AIR SERVICE, UNITED STATES ARMY, WHICH PROVIDED FOR THE SALE AND PURCHASE OF ONE COMPLETE SET OF CONTROL SURFACES FOR ZODIAC AIRSHIP UNDER THE TERMS AND CONDITIONS OF AIR SERVICE ORDER NO. 520135; AND

WHEREAS IT IS TO THE INTEREST OF THE GOVERNMENT TO SUBSTITUTE DURALUMIN TUBING INSTEAD OF STEEL TUBING, AS CALLED FOR IN THE ORIGINAL CONTRACT; AND

WHEREAS THE CONTRACTOR HAS AGREED TO SUBSTITUTE DURALUMIN TUBING FOR STEEL TUBING, PROVIDED THAT THE CONSIDERATION CALLED FOR IN THE ORIGINAL CONTRACT, TOGETHER WITH THE ADDITIONAL COST OF THE SAID SUBSTITUTE DURALUMIN TUBING INSTEAD OF STEEL TUBING, BE PAID IN FOUR (4) EQUAL PAYMENTS AND AT FOUR (4) SPECIFIED PERIODS AS HEREINAFTER SET FORTH; AND

WHEREAS, ARTICLE I OF SAID ORIGINAL CONTRACT NO. 7283 PROVIDES THAT CHANGES MAY BE MADE AT ANY TIME BY MUTUAL AGREEMENT BETWEEN THE CONTRACTING OFFICER AND THE CONTRACTOR:

NOW, THEREFORE, THIS CONTRACT WITNESSETH, THAT FOR AND IN CONSIDERATION OF THE PREMISES AND OF THE TERMS AND CONDITIONS HEREINAFTER SET FORTH, THE CONTRACTOR AND THE GOVERNMENT HEREBY COVENANT AND AGREE AS FOLLOWS:

ARTICLE I.

THE CONTRACTOR HEREBY SELLS TO THE GOVERNMENT, AND THE GOVERNMENT HEREBY PURCHASES, ONE (1) COMPLETE SET OF CONTROL SURFACES FOR THE ZODIAC AIRSHIP, HAVING DURALUMIN TUBING SUBSTITUTED FOR STEEL TUBING, WHICH WAS SPECIFIED IN THE ORIGINAL CONTRACT, NO. 7283.

THIS SUBSTITUTION OF MATERIAL SHALL BE MADE IN ACCORDANCE WITH ITEMIZED LIST OF ACTUAL COST OF MATERIAL AND LABOR WRITTEN INTO THE AMENDMENT TO AIR SERVICE ORDER NO. 520135-A, FORWARDED HEREWITH, AND IN ACCORDANCE WITH BLUE PRINTS FURNISHED BY THE CONTRACTOR, NOS. 1835 1, 1835-4, 1835-5, 1835 -6, AND 1835-10, ALL OF WHICH ARE HEREBY ATTACHED AND MADE A PART OF THIS SUPPLEMENTAL CONTRACT.

ARTICLE II.

FOR AND IN CONSIDERATION OF THE FAITHFUL PERFORMANCE OF THE TERMS AND CONDITIONS OF THIS CONTRACT, THE GOVERNMENT HEREBY AGREES TO PAY TO THE CONTRACTOR THE SUM OF TWENTY-TWO THOUSAND, FIVE HUNDRED DOLLARS ($22,500.00), WHICH AMOUNT IS AN INCREASE OF THIRTEEN THOUSAND SEVEN HUNDRED FIFTY DOLLARS, ($13,750.00), OVER THE CONSIDERATION SET FORTH IN THE ORIGINAL CONTRACT, AND COVERS THE EXTRA COST OF MATERIAL AND LABOR IN CARRYING OUT THE CHANGES STIPULATED IN ARTICLE I HEREOF.

PARTIAL PAYMENTS SHALL BE MADE TO THE CONTRACTOR, AS ONE OF THE CONSIDERATIONS FOR MAKING THE CHANGES, AS FOLLOWS:

TWENTY-FIVE PERCENT (25 PERCENT) OF CONTRACT PRICE TO BE PAID WHEN IT HAS BEEN DECIDED BY THE ARMY INSPECTOR THAT THE MATERIAL IS TWENTY FIVE PERCENT (25 PERCENT) COMPLETE.

TWENTY-FIVE PERCENT (25 PERCENT) WHEN FIFTY PERCENT (50 PERCENT) COMPLETE.

TWENTY-FIVE PERCENT (25 PERCENT) WHEN SEVENTY-FIVE PERCENT (75 PERCENT) COMPLETE.

TWENTY-FIVE PERCENT (25 PERCENT) UPON FINAL COMPLETION AND ACCEPTANCE.

THE PARTS PAID FOR UNDER THE SYSTEM OF PARTIAL PAYMENTS ABOVE SPECIFIED SHALL BECOME THEREBY THE SOLE PROPERTY OF THE GOVERNMENT, BUT THIS PROVISION SHALL NOT BE INTERPRETED AS RELIEVING THE CONTRACTOR FROM THE SOLE RESPONSIBILITY FOR THE PROPER CARE AND PROTECTION OF SAID PARTS PRIOR TO DELIVERY OF THE MATERIAL TO THE GOVERNMENT, OR FROM ANY OTHER PROVISIONS OF THESE SPECIFICATIONS.

ARTICLE III.

IT IS FURTHER MUTUALLY AGREED THAT INASMUCH AS DELIVERY HAS NOT BEEN MADE WITHIN THE TIME ORIGINALLY SPECIFIED, AND BY REASON OF THE CHANGES SPECIFIED, APPROVED AND DIRECTED BY THE GOVERNMENT, THE TIME FOR THE COMPLETION OF THE ORIGINAL CONTRACT IS HEREBY EXTENDED TO AND TO INCLUDE THE FIRST DAY OF MAY, 1922.

ARTICLE IV.

THE PARTIES HERETO MUTUALLY COVENANT AND AGREE THAT THIS CONTRACT SHALL BE SUPPLEMENTAL TO THE AFORESAID ORIGINAL CONTRACT TO THE SAME EXTENT AS IF ITS TERMS AND CONDITIONS HAD BEEN SPECIFICALLY WRITTEN INTO SAID CONTRACT WHEN ORIGINALLY MADE, BUT THAT OTHERWISE, ALL COVENANTS, AGREEMENTS, TERMS, AND CONDITIONS THEREOF SHALL BE IN FULL FORCE AND EFFECT.

IN WITNESS WHEREOF, THE PARTY OF THE FIRST PART HAS CAUSED THIS CONTRACT TO BE EXECUTED BY ITS PROPER OFFICER DULY AUTHORIZED SO TO DO, AND THE UNITED STATES OF AMERICA HAS CAUSED THIS CONTRACT TO BE EXECUTED BY THE UNDERSIGNED CONTRACTING OFFICER, DULY AUTHORIZED SO TO DO. WITNESSETH:

(SGD.) H. B. HAUSER. WHITTEMANN AIRCRAFT CORPORATION,

BY (SGD.) HALBERT E. PAYNE,

VICE PREST.

UNITED STATES OF AMERICA.

(SGD.) MAY COLLIER. BY (SGD.) R. M. JONES,

MAJOR, AIR SERVICE, CONTRACTING OFFICER.

APPROVED:

MASON M. PATRICK,

MAJOR GENERAL, U.S. ARMY, CHIEF OF AIR SERVICE.

THE CHIEF OF FINANCE, INDORSEMENT OF FEBRUARY 14, 1922, TO THE FINANCE OFFICER AT BOSTON, ASS., STATED:

1. THE PROPOSED AMENDMENT TO THE ORIGINAL CONTRACT IN THIS CASE DOES NOT APPEAR TO BE IN THE INTEREST OF THE UNITED STATES.

2. WITH THE EXCEPTION OF THE SUBSTITUTION OF DURALUMIN TUBING INSTEAD OF STEEL TUBING, AS ORIGINALLY CONTRACTED FOR, THE AMENDMENT SEEMS TO MAKE NO CHANGE, AS THE SEVERAL DRAWINGS RECITED IN THE ORIGINAL CONTRACT ARE TO BE USED IN CARRYING OUT THE PROVISIONS OF THE AMENDMENT.

3. THIS OFFICE WOULD SUGGEST THAT UPON THE SUBMISSION OF THE INVOICES COVERING PERFORMANCE UNDER THE CONTRACT AS AMENDED THAT SAME BE SUBMITTED TO THE COMPTROLLER GENERAL FOR AN ADVANCE DECISION AS TO WHETHER OR NOT PAYMENT IS AUTHORIZED.

THE DISBURSING OFFICER IN HIS SUBMISSION STATES:

(A) THE SUPPLEMENTAL CONTRACT OF JAN. 30, 1922, SUBSTITUTES DURALUMIN TUBING FOR STEEL TUBING, FOR WHICH CHANGE, ACCORDING TO THE TERMS OF SUPPLEMENTAL CONTRACT, THE CONTRACTOR IS TO BE PAID $22,500.00 INSTEAD OF $8,750.00, AS PROVIDED IN THE ORIGINAL CONTRACT. THIS INCREASE IS VIEWED BY THIS OFFICE TO BE WITHOUT SUFFICIENT CONSIDERATION FOR THE REASON THAT IT IS SHOWN BY ITEMIZED LIST ATTACHED HERETO THAT THE ACTUAL COST OF THIS TUBING IS $880.00, AND IT WOULD APPEAR TO BE UNREASONABLE TO ASSUME THAT THIS CHANGE IN SPECIFICATIONS WOULD INCREASE THE COST OF THE MATERIAL TO BE DELIVERED UNDER THE ORIGINAL ORDER IN THE AMOUNT MENTIONED ABOVE, WHICH, AS IT WILL BE NOTED, IS APPROXIMATELY 275 PERCENT.

(B) THE AMENDMENT OF JAN. 30, 1922, FURTHER CHANGES THE ORIGINAL CONTRACT, WHICH WAS LET ON A FIXED-PRICE BASIS, TO A COST-PLUS BASIS, AND PROVIDES FOR A PROFIT OF 25 PERCENT, WHICH PROFIT, IN VIEW OF THE ALLOWANCE OF 100 PERCENT OVERHEAD, IS DEEMED BY THIS OFFICE TO BE EXCESSIVE. FURTHER, IT IS NOT BELIEVED THAT THE CONTRACTING OFFICER HAD THE POWER TO CHANGE THE TERMS OF AN EXISTING LEGALLY SIGNED CONTRACT PROVIDING FOR A FIXED PRICE TO A SUPPLEMENTAL PROVIDING FOR A COST-PLUS METHOD OF REIMBURSEMENT.

(C) THE SUPPLEMENTAL CONTRACT SUBMITTED HEREWITH PROVIDES FURTHER FOR MAKING PARTIAL PAYMENTS, WHICH CONCESSION WAS NOT A PART OF THE ORIGINAL CONTRACT, AND WHICH IS NOW APPARENTLY INSERTED WITHOUT CONSIDERATION MOVING TO THE GOVERNMENT THEREFOR.

ON THE DATA SUBMITTED THE OBLIGATIONS SOUGHT TO BE IMPOSED ON THE UNITED STATES BY THE TERMS OF THE SUPPLEMENTAL CONTRACT ARE SO OUT OF PROPORTION TO THE BENEFITS TO BE DERIVED FROM WHAT APPEARS TO BE BUT A SIMPLE CHANGE, A SUBSTITUTION OF A SMALL AMOUNT OF MATERIAL OF A CERTAIN CHARACTER FOR MATERIAL OF A DIFFERENT CHARACTER, AS TO BE UNCONSCIONABLE. BUT HOWEVER THAT MAY BE, THERE IS NO SHOWING THAT THE TERMS OF THE ORIGINAL CONTRACT HAVE BEEN COMPLIED WITH IN THE PROCEDURE TO BE FOLLOWED IN DETERMINING THE AMOUNT OF ANY INCREASE OR DECREASE IN THE PRICE OR COMPENSATION. ARTICLE 1 PROVIDES THAT SUCH INCREASES OR DECREASES SHALL BE DETERMINED BY A BOARD AS PROVIDED IN ARTICLE 5, BUT THERE IS NO INTIMATION THAT SUCH PROCEDURE WAS FOLLOWED IN THIS MATTER.

WHETHER UNDER ANY CIRCUMSTANCES, WITH RESPECT TO A CONTRACT FOR A FIXED PRICE (SUCH PRICE TO BE PAID UPON COMPLETION AND DELIVERY OF THE WORK) WHEREIN BY THE TERMS THEREOF IS PROVIDED A METHOD FOR DETERMINING INCREASES OR DECREASES THEREUNDER DUE TO AUTHORIZED CHANGES, THE PLAN OF PAYMENT PROPERLY MAY BE SO RADICALLY CHANGED AS TO TRANSFORM THE CONTRACT FROM A FIXED PRICE TO A COST-PLUS BASIS, IS AS DOUBTFUL AS SEEMINGLY IT IS UNNECESSARY AND UNECONOMICAL FROM THE STANDPOINT OF THE GOVERNMENT'S INTERESTS. IT IS SUFFICIENT TO SAY IN ANSWER TO THE PRESENT SUBMISSION THAT A CONTRACT THAT ORIGINALLY CALLED FOR AN OUTLAY OF $8,750 CAN NOT BY AMENDMENTS, CHANGES, OR IN ANY MANNER, BE MADE TO PROVIDE FOR AN EXPENDITURE MORE THAN TWO AND A HALF TIMES GREATER. IF SUCH A CONDITION EXISTS AS SHOULD CALL FOR SUCH A GREATER OUTLAY, THE ORIGINAL PROPOSITION MUST BE CONSIDERED AS NO LONGER FEASIBLE OF BEING CARRIED OUT AND THAT IT MUST BE TERMINATED. THE LAW MUST BE UNDERSTOOD AS REQUIRING STRICT CONFORMITY TO THE TERMS OF A CONTRACT ENTERED INTO AFTER COMPETITION HAS BEEN OBTAINED AND THERE IS NO JUSTIFICATION FOR PROCEEDING TO GREATER EXPENDITURES THAN ORIGINALLY CONTEMPLATED IN CONNECTION WITH THE PROJECT SUBMITTED FOR COMPETITION OF CONTRACTING BIDDERS. SEE SECTIONS 3709 AND 3744, REVISED STATUTES. A COPY OF THIS DECISION WILL BE TRANSMITTED TO THE SECRETARY OF WAR FOR HIS INFORMATION.