Since July 1, 1950, SFO developments andachievements in which this office has
participated have been numerous. Many were initiated and/or handled by this office, the
more significant of which are briefly summarized below.
he

Test Damage Claims
During the first Nevada test series it was determined that blast damage claims
should be investigated and, when justified, settled promptly. It was concluded that an

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administrative finding of liability under the Tort Claims Act could properly be made without embarrassment. The AEC cleared the SFOO-proposed action with the Justice Department and the General Accounting Office, and SFOO payment was approved in advance by

the AEC,

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A contract was entered into with General Adjustment Bureau, a corporation

furnishing adjustment services to participating insurance carriers, and initial administrative arrangements made by which normal adjustment procedures were adapted to
Government administrative requirements.
Because the Justice Department intends to urge the courts to adopt a different in-

terpretation of the Tort Claims Act, in early 1952 a statute was drafted under which SFOO

authority to pay certain claims would be unquestionable.
mended Congressional action.

The Commission has recom-

Opinions have been rendered or other participation undertaken on all unique claims,

particularly those alleged to have resulted from radiation.
California Employees Retirement Funds

In 1951, a memberof the staff conceived the idea of attempting to persuade California to return contributions made by the AEC through the University of California to

the California State Employees Retirement System for employees who worked for the
University at Sandia Base prior to the time Sandia Corporation took over. In July 1952,

primarily as a result of the efforts of this office, the State Employees Retirement System
returned an amount of $399, 751.49 for the benefit of Sandia Corporation employees formerly employed by the University. Since there was no legal claim to this money, the payment was made in accordance with an Act of the California Legislature, this office assisting in its passage.
Construction Contractor Appeals
Owing to the lack of personnel in the Counsel's office at Los Alamos, the Albuquerque
office has handled all construction and architect-engineer contract matters for SFO, including Los Alamos. A large construction program in Los Alamos, the construction at
Pantex, Rocky Flats, and Las Vegas have resulted in numerous claims and appeals by
lump-sum construction contractors. With the increased familiarity of SFO lump-sum
contractors with the AEC appeal procedures, the frequency and size of these appeals has

increased greatly during the three-year period. Further, the practice of retaining legal
counsel to prosecute the appeals has developed and become standard. This office has represented SFO contracting officers in approximately 30 appeals during the period, and on
June 30, 1953, approximately 20 additional appeals were pending or about to be taken.

The amount of money involved in the appeals handled during the three-year period was

more than $500,000, and the amount involved in the appeals pending or imminent at the
end of that period was more than $200, 000.

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