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B-151294, OCT. 12, 1964

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Highlights

TO THE SECRETARY OF THE ARMY: REFERENCE IS MADE TO A LETTER DATED JUNE 17. THE CLAIM IS BASED UPON AN ALLEGED UNDERSTANDING AT THE TIME OF NEGOTIATING THE CONTRACT THAT THE FIXED LABOR RATE WOULD APPLY TO 60 STANDARD UNITS OF LABOR DEVELOPED UNDER THE WAGE INCENTIVE PLAN OF THE OTIS ELEVATOR COMPANY. WERE DENIED BY YOUR DEPARTMENT IN 1957 AND 1961. RECONSIDERATION OF THE CLAIM WAS REQUESTED BY OTIS IN A LETTER DATED SEPTEMBER 25. 730 WHICH WAS PRESENTED TO OUR OFFICE. THIS CHANGE IN POSITION WAS INFLUENCED BY CERTAIN OF THE FACTORS CONSIDERED BY THE ARMY CONTRACT ADJUSTMENT BOARD IN ITS DECISION OF FEBRUARY 17. WHICH EXPRESSED THE OPINION THAT THE PREPONDERANCE OF THE EVIDENCE INDICATED THAT IT WAS OTIS' INTENT AND UNDERSTANDING AT THE TIME THE CONTRACT WAS NEGOTIATED TO BILL THE GOVERNMENT ON THE BASIS OF CLOCK HOURS.

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