Opinion ID: 413419
Heading Depth: 2
Heading Rank: 1

Heading: Facts--Government Reservations and the Engines

Text: 3 Gary entered into a contract with the United States Air Force to rebuild Model 2800 aircraft engines, effective as of December 1, 1970. Under the contract Gary was supplied with materials from various government sources to use in the rebuilding process. Beginning in late 1973, the General Accounting Office developed some doubts regarding Gary's handling of government furnished property. The first contract, after extensions, expired on August 31, 1974. Despite the GAO problems, Gary was awarded a second contract to perform the same services beginning September 1, 1974. 4 During August, 1974, the GAO told the Air Force that drastic measures were needed to protect the government's interests. In response, the Air Force sent a fifty person team to Gary's plant. The team imposed some stringent property and quality control procedures, which appear to have had the effect of severely disrupting Gary's work. Consequently, Gary was unable to meet its delivery deadlines and the government terminated the second contract for default in March of 1975.