352 



(The information follows :) 



Department of State, 

 Agency for International Development, 



Washington, D.C., June 18, 1969. 

 Hon. Alton Lennon, 



Chairman, Subcommittee on Oceanography, Com/mittee on Merchant Marine and 

 Fisheries, House of Representatives, Washington, B.C. 



Dear Congressman Lennon : Thank you for your letter of May 29, 1969 In 

 whicih you asked for a status report on the contract A.I.D. awarded to Alpine 

 Marine Protein Industries, Inc. (a wholly -oiwned suhsidiary of Alpine Geophysical 

 Associates, Inc.) in April, 1968 to provide A.I.D. approximately 970 metric tons 

 of fish protein concentrate (PPC) for $900,000. 



The contract called for delivery of 320 metric tons by January 26, 1969 and 

 the balance by Jiuly 26, 1969 and included a liquidated daniage® clause in case 

 these delivery dates were not met. In October, 1968 Alpine requested a four-month 

 extension of these delivery dates. The extension was granted because it was deter- 

 these delivery dates were not met. In October, 1968 Alpine requested a four-month 

 period. The new delivery dates were set at May 26 and November 26, 1969. How- 

 ever Alpine was unable to deliver as scheduled on May 26. Although several 

 attempts have been made by Alpine to soipply small quantities of FPO for A.I.D.- 

 sponsored market studies, the FPC produced did not meet the required specifica- 

 tions. To date, no FPC has been delivered to A.I.D. under the contract. Accord- 

 ingly, A.I.D. has given written notification ito Alpine that idamages are assessable 

 under the liquidated damages clause of the contract in the absence of facts to 

 support an excusable delay. This clause requires ithat Alpine "shall pay to A.I.D. 

 by way of compensiation, and not as a penalty, liquidated damages for delay in 

 delivery at the rate of two percent (2%) per thirty (30) day period of price of 

 undelivered amount for each thirty (30) day period or fraction thereof of delay 

 commencing on the first day after the date in which delivery is required under 

 the contract or any extension thereof, and eontimiing until the date of actual 

 delivery or the date of termination of the contract." We are ehclosinig a copy of 

 the contract and amendment as well as a copy of A.I.D. 's letter to Alpine, dated 

 June 8, 1969, regarding the liquidated damages. 



As you know, A.I.D. helped in initiating this pioneering attempt to produce 

 FPC on a commercial scale and we fully expect delivery under this contract. 

 Alpine reports that it has produced a substantial quantity of first stage material, 

 which awaits final processing. The final processing facilities are completely 

 installed and are now being tested. Once the plant is fully operative, it is expected 

 that Alpine should be able to meet its first delivery commitment, now estimated 

 to be September 1, 1969. 



Once received, A.I.D. will utilize the FPC in projects developed pursuant to 

 the enclosed Guidelines which were sent to Registered Voluntary Agencies and 

 A.I.D. Missions abroad. The proposals received were prepared and have been 

 evaluated in accordance with the criteria set forth in the Guideliiles. A prelim- 

 inary review of these proposals indicates that Brazil, Colombia, Dominican Re- 

 public, Chile, India and Korea offer the best opportunities for Phase T of the 

 program. The information developed from Phase I will be used to program the 

 second delivery of 650 metric tons of FPC. 



Your deep and continued interest in this program is appreciated. We will be 

 pleased to supply you with any additional information you would be interested 

 in receiving. 



Sincerely yours, 



Matthew J. Habvet, 

 Director, Congressional Licnson Staff. 



Guidelines for Use and Evaluation of AID Procured Fish Protein 

 Concentrate (FPC) 



(By Food From the Sea Service, OfBce of War on Hunger, Agency for 

 International Development) 



I. General facts on FPC. 

 II. Delivery schedule/amounts available. 

 III. Utilization and evaluation program : 



A. Phase I (330 tons). 



B. Phase II (640 tons). 



