Evening star., 1943-09-25
Warren Urges GAO
Check All Claims on
Voided War Contract.

Legislative proposals that would
make the General Accounting
Office the final arbiter over all
claims submitted by contractors
for Cancelled war contracts have
been submitted by Controller
General Warren to the Senate
Committee on Small Business,
1t was announced today.
The proposals were outlined in
detail in letter sent to Chairman
Murray and members of the COM
mittee's subcommittee on contract
termination - Senators Truman
Democrat, of Missouri, and Rever-
comb, Republican, of West Virginia
Senator Murray, in making the
letter public, said hearings would
be held on the entire subject soon
and Mr.. Warren would be called
as one of the witnesses.
Compares Figures.
The Montanan pointed out that
the dollar value of contracts already
terminated exceed that of all con-
tracts Cancelled after the World
War. He said it had been esti-
mated that examinations after this
war would run above $50 1000, 900 900.
Mr.. Warren proposed two major
points in his plan:
First, that contracting agencies
submit to the GAO all claims, to-
gether with report and recon-
mendation of the balances believed
due. This provision would nullify
War Department regulation to the
effect that "in the case of nego-
tiated settlements, no documentary
evidence is to be submitted to the
General Accounting ONCE"
Second, it directs the GAO to re-
view these claims and certify for
payment such balances as it may
determine to be due" The draft of
the bill submitted by Mr.. Warren
provides specifically that any ad-
vance or partial payments previous
ly made would be subject to audit
ing by the GAO.
Hits Present Policy
o Mr.. Warren criticized the present
policy of buying agencies in termi-
nation of such contracts, as well as
proposed measure now before the
committee
He objected particularly to a re-
quirement in the proposed bill which
he said would make mandatory ad-
vance payments to both prime con-
tractors and subcontractors, and
would eliminate investigation of
such claims by any Government
agency other than the contracting
officer.
He said investigation of the op-
Grafton of cost-plus contracts had
shown what he described as an over
liberal attitude on the part of con-
tracing officials in accepting items
of cost. That, he said, had convinced
him that in making final settlements
without an independent check, con-
tracing officers will allow improper
payments which perhaps will total
millions of dollars"
Cites Objections.
Mr.. Warren said the measure now
before the committee would require
payments possibly running into bill
lions upon the mere certification
by claimants that certain amounts
are due them"
While I appreciate the purpose
which is proposed to be accom-
plished by the proposed bill, to wit,
the speedy payment of at least a
part of amounts owing to contrac-
tors and subcontractors under con-
tracts which have been terminated
by the Government for its convent
ence, Mr.. Warren wrote, yet I feel
that in its present form the bill is
Objectionable"
Mr.. Warren said legislation af-
fecting cancellations was not of
pressing urgency, since stopping war
contracts will not occur In great
bulk or peak load until the cessation
of hostilities."