[NOd-1655]

SUMMARY OF CONTRACT FOR MACHINERY FOR MINESWEEPERS

CONTRACTOR: AMERICAN LOCOMOTIVE COMPANY, AUBURN, NEW YORK

January 29,1941.

Under date of December 6, 1940, the the Navy Department entered into a contract with American Locomotive Company for the construction of propelling machinery for nine (9) minesweepers, at Auburn, New York, at a total contract price of $5,299,890.00 or a contract price of $588,874.00 for the first set and a contract price of $588,877.00 for the remaining sets of machinery.

The contract provides for the suspension, termination, or cancellation of the contract in order to safeguard the Government's interest should the public exigency require such action. An equitable basis for settlement of the contract is provided in the case of each of these contingencies. In the event of termination due to fault of the contractor, the Government may complete the construction of the machinery for the account of the contractor.

The contract price is subject to adjustment for variations in cost due to approved overtime and/or shift work, and changes in the plans and specifications which may be ordered by the Navy Department during the course of construction. The contract provides for the payment by the contractor of liquidated damages for late delivery.

S.M. Robinson,
Chief of Bureau,

[F. R. Doc. 41-764; Filed, February 1, 1941; 9:47 a. m.]