Document QkQabqZXDg7zq6pZqrE0xN446

01yr JCrw llurJt Cmira NEW YORK, N. Y. 0.834J2Z8 SUN. 1.435J08 MAR 21 19/6 LETTER FROM WASHINGTON For Lack of a Pin... f By SHIRLEY ELDER under investigation for a number of alleged improprie T started as a fairly ties. Along the way, smell Iroullna Congressional businesses in New York have project. Representative lost 890 million in defense Thomas J. Downey, contracts over the last three Democrat of West Is!ipo,r four yean. heard that a constituent, That "unworkable law," Henry Madina, was having the Walsh-Hetley Act, is at trouble with the Federal Gov the heart of the problem. It ernment. It seem* that Mr. Medina had been the low bidder on a Defense Depart ment contract for making grenade pins--and still lost the job. Mr Downey directed his staff to try to find out what was going on. Today, nearly one year and two Congressional inquiries was enacted 40 years ago to correct a problem of the day, something known as "bid brokerage," which occurs whsn persons who are not legitimate dealers or manu facturers submit bids so low that none of the established companies can compete. The law applies to all Fed later, the Department of La bor has been accused of try ing to enforce an unworkable taw, and regional contract ing officials in New York are eral supply contracts over $10,000 (a fair aise in the 1030's) and requires that the bidder be a regular manu facturer of what is to be produced. The key word is "manufacturer." The Labor Department has ruled lhat any concern classi fied as an "assembler" can not be considered a "manu facturer." Thus the Defense Contracts Administrative Services office in New York has systematically ruled against bidders like Mr. Me dina and his Welmetco con cern, now in Melville (Repre sentative Jerome A. Ambro'i district). Among the approximately two dozen other low-bidding companies turned down in recent years, Mr. Downey said, are Apoca Industries, Deer Park; fnscom Electron ics, Freeport; Rama! Indus tries, Deer Park, and Solar Laboratories. New York City. At Mr. Downey's request. the General Accounting Of fice looked into the matter and concluded that Labor De partment standard! under the Walsh-Healey Act were "fragmented and unclear1' and, perhaps worse, the law was not evenly applied throughout the country. Sta tistics showed that while the New York office found S3 low bidders failed to qualify as manufacturers from 19711 to 1975, none were turned down in Los Angeles and only one in Philadelphia and four in Atlanta. The Gene-irt Accounting Office suggested that the Secretary of Labor take another look at the law. Meanwhile, two subcom mittees of the House Small Business Committee, on Cool'd on Following PagrO HONS 0371A8 wrich Mi Downey senes, (polychlorinated biphenyls) ire looking into charges of ia the Hudson River, pose n improprieties and discrimina serious health hazard to tion against minority busi Long Island. Mr. Lent sus nesses by the New York of pects they do. ' fice. Representative Joseph "It is my understanding." P. Addabbo, Democrat of Mr. Lent said, "that these Queens, chairman of one of striped bass morale from the subcommittees, has a MI the Hudson fishery (now that would allow business closed by state order to com men to appeal Walsh-Healey . mercial fishing) out (o sea complaints to the Small Busi in a northeastern direction." ness Administration in Wash If so, he said, they could ington. easily wind up in fishing areas off the Island. Representative'Norman F. So far. Commerce bas been Le.ii, Republican of East particularly heipfuL Ruoert ftMfenwny, hat asked the W. SdMMuag, director of the Commerce Department to try National Oceanic and Atmos to find out whether stQped pheric Adainisti-atipn wrote bass, poisoned .by OCB'i Mr. Lent that the widespread Complaint about loss of grenade-pin contract leads to investigations evidence of PCB deposits la fish "demonstrate that re strictions are in order." But then he said the problem is in deciding whet form the restrictions should teke. He said he didn't think the Hudsop River contamination would necessarily spread to Long Island. 1 However, Mr. Lent said there was a statistical weak- ness in Mr. Schoning's posi equipment by a General Elec Committee, prodded by Mr. tion. if one PCB-contaminat tric plant near Albany, with Downqy, has adopted an ed fish joins dozens of oth waste dumped into the Hud amendment from Representa ers, the statistical'PCB con son. PCB's contain unique tive Samuel ^ Stratton, tent might be very low, he chemical properties .that re Democrat of Albany, to keep said, but, at the same time, duce heat and thus reduce the A6 (all-weather attack it would remain high in that the possibility of fire on com plane) assembly line operat one fish and pose a danger plex closed-circuit electrical ing et Grumman .plants in to anyone who miit eat systems. . Calverton and Bethpage. The X it. ' Mr. Downey lias noted that plane has been marked for o 2 Pi Mr. Lent's neighbor, Mr. Downey, is attacking the same problem from another Japan, which had a serious PCB problem several years ago, banned all production extinction by the Pentagon, which woujd tike to move on to what they * call the angle. He wants te know and imports of PCB's and "next generation" of aircraft. O u> why this country cannot stop imposed stringent disposal But Mr. Downey and Mr. companies from dumping methods. He would like to Stratton have inserted, at PCI's into the water. ' see this country do the same least for now. S12S million' ** In Maw York's case, the thing. into the defense budget to sO chemicals are used in the . keep production at a mini manufacture of electronic The House Aimed Services mum pace.