Re: Subcontract 103 Page 2 In addition to the amount withheld by IRL, we believe you bave also deducted as “Retention on Overhead” the gum of $13, 366. 65 which is in addition to the above. This should be verified. Tt was owr impression that there was going to be a substantial cost overrun and it may be your books reflect reimbursable costs which are not yet invoiced so this showla be explored. At one time we were quite concerned because the actual overhead rates might exceed the provisions overbead rates used. . This situation should be carefully inveatigated and evaluated. In ny letter af Decenber 22, 1938 I SumAabod you ©statanent of sulit findings for the period from inception through February 26, 1958. This data should be teken into account when evaluating the total picture. With vegard to residual inventory in your custody would you please arrange to ship this mterial to us by the most practical and economical means, charges collect, addressed to: University of California Lawrence Radiation laboratory End of East Aveme . Livermore, California Reference: Attention: Subcontract 108 Mr. W. EB. Brownlee, Stores Division As I reeall, there was at least one full trailer load of material. Prior to shipment of this material to the Laboratory, advance arrangements should be made with our Mr. William Brownlee, Telephone: Hilltop 7-1100, Extension 696 so that he can be ready with equipment as necessary to umload the trucks, space in which to accept delivery, and have manpower available. The shipment should be scheduled out of your area to arrive for delivery here before 2:00 PM; packing ticket or list on each box or unit; we prefer not to have articles shipped loose; care should be taken so that small articles do not become lost; adequate protection should be made against breakage; each box a package should be numbered with identity to comtents therein and & master list should be prepared to accompany the truck for Receiving Clerk's usage here. Detailed shipping lists should accompany the manifest, mail one to Mr. Brownlee, send four coples to this office. NO EXPLOSIVE MATERIALS MAY EE SHIPPED TO THE ABOVE LIVERMORE ADDRESS. If explosive materials or propellants, igniters, flares, caps, ete. are involved, shipment should be coordinated with Mr. Brownlee, but should be addressed to: University of California Lawrence Radiation Laboratory Site 300 Tracy, California Reference: Attention: Subcontract 108 Mr. Gorden Hobbs ~ Telephone Hilltop 7-1100, Ext. 8228

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