Summary

UNITED STATES INFORMATION AGENCY: REFERENCE IS MADE TO YOUR AGENCY'S LETTER OF MAY 21. REQUESTING A DECISION AS TO WHETHER THERE IS AUTHORIZED THE REFORMATION OF COST-PLUS-FIXED-FEE CONTRACT NO. THE CONTRACTOR STATES ITS UNDERSTANDING DURING THE NEGOTIATIONS RESULTING IN THE CONTRACT "THAT INSURANCE ON NBC OWNED PROPERTY WOULD BE INCLUDED AS PART OF THE COST ESTIMATES AND HENCE WAS REIMBURSABLE.'. IT IS STATED: "THE FACT THAT THIS WAS THE INTENT IS OUTLINED IN THE "SUMMARY OF ITEMS OF COST TO BE INCLUDED IN PROPOSED FACILITY CONTRACTS. - THIS ITEM SHALL INCLUDE COST OF INSURANCE TO PROTECT CONTRACTOR AGAINST LOSSES TO OWNED OR LEASED PROPERTY USED IN CONNECTION WITH THE PERFORMANCE OF THIS CONTRACT...'" IN ARTICLE FIRST OF THE CONTRACT IT IS PROVIDED: "THE CONTRACTOR SHALL PAY COSTS AND EXPENSES OF MANAGEMENT.