Although contacts with the Labor Commissioner in this matter had been closely coordinated with those of AEC Legal Counsel, who was thoroughly familiar with the developments, this opinion of the Labor Commissioner was officially referred to the AEC on February 8, 1951 (HN-8034), to- gether with an additional letter from the Labor Commissioner, dated February 5, 1951, requesting an answer in this matter. Under date of April 3, 1951, the Labor Commissioner again requested an immediate reply to his inquiry of February 5, 1951. This request was also referred to the AEC by letter (HN-8643) dated April 4, 1951. On the same date the H & N Assistant Chief of Operations discussed the matter with the ABC Contracting Officer by telephone. Under date of April 6, 1951, H & N was advised by the Contracting Officer that the matter was being referred to the Comptroller General of the United States, with a request that a decision be rendered as to whether or not refunds made in accordance with the opinion of the Labor Commissioner would be reimbursible from government funds .+ As of May 31, 1951, no decision had been furnished as to the proper disposition of claims of this nature. FRINGE BENEFITS In accordance with the Contracter's established policy, all employees of the Contractor’s Home Office participate in Employees Fringe Benefit payments. These benefits include prescribed annual allowances for vacation, sick leave, holiday pay, severance pay, supplemental compensation, and a Group Life Insurance Plan. To provide, in part, for these payments, the Contract, Appendix "A", stipulates that an amount will be paid the Contractor equal to a percentage of the reimbursible on-continent payroll. This percentage is re- viewed and/or adjusted with the approval of the Commission, at the beginning of each calendar year. It is based on the previous calendar year's record of experience, covering the actual amount of fringe benefits paid in relation to the total on-continent payroll as defined in Appendix "A” of the Contract. During the past three calendar years, the Fringe Bene- fit percentages as approved by the Commission, have been: 1949, 13.5 per cent; 1950, 9.18 per cent; and 1951, 11.646 per cent. The Fringe Benefit policy is administered by the Contractor's Manage- ment, through the office of the Chief Piscal Officer, as Chairman of the Salary Committee, in accordance with the established company policies as reflected in Fiscal Bulletin No. 1 and Fiscal Bulletin No. 1, Re- visions 1 and 2. Copies of these bulletins are reproduced as an exhibit at the end of this section. INSURANCE — Under the terms of the Contract, reimbursement of premiums paid for insurance and bonds could be secured only on “such bonds and insurance policies" as had been "approved or required by the Commission." H & N was advised, prior to the actual issuance of the Definitive Contract, a 1aRc letter, April 6, 1951 (HN-13776). 11-34