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B-169300 1 (1971-04-23)

handle is hein.gao/gaobaafhl0001 and id is 1 raw text is: 


               COMPTROLLER GENERAL OF THE UNITED STATES
                         WASHINGTON. D.C. 20548                        /

B-!1693o                                         APR 23 1971




                                                            LMrj95571
Dear Senator Brooke:

     This is in response to your referral dated March 4, 1971, vith
enclosure, requesting our findings and views concerning a comment
from Mr. Ronald Cohen of Cambridge, Massachusetts. On the basis of
an article published in The New Republic, Mro Cohen urged you to do
everything in your power to see that the General Acco~ut i.gc0;fe
fulfills its responsibilities concerning the Lockhed Aircraft Cor-
          t he toiitracithr-fit          ie'  i Force to produce C-5A
aircraft.

     The article stated that the General Accounting Office had ac-
quiesced to a plan proposed by the Department of Defense to absolve
Lockheed of much of its contractual liability for cost overruns on
the C-5A aircraft and other procurements. The article also indicated
that the Department of Defense contemplated the use of Public Law
85-804 which provides authority to enter into contracts or to make
amendments without regard to other provisions of law relating to the
making, performance, amendment, or modification of contracts whenever
such action would facilitate the national defense. The article ques-
tioned the use of this law for Lockheed and stated that the legisla-
tive history of Public Law 85-804 indicated that it had been written
to aid small defense contractors.

     The article also implied that the investigative efforts of the
General Accounting Office were being directed and controlled either
by the Department of Defense or by the Chairmen of the Committees on
Armed Services and Appropriations. Consequently, the Office was not
fulfilling its responsibility of remaining independent of the execu-
tive departments and investigating all matters relating to the receipt,
disbursement, and application of public funds.

     Concerning the question of whether Public Law 85-804 is the proper
vehicle for resolving Lockheed's problems on the C-5A aircraft contract
with the Air Force, we have reviewed the legislative history of Public
Law 85-804 and have concluded that the proposed action is not precluded
by the law and is within the intent of the legislative history.

     The floor debates of the law seem to answer in the negative the
question of whether the act should be limited to small claims. During






                    50 TH ANNIVERSARY 1921 - 1971