U.S. DISPUTE OF RUSSIAN START BILLS

UNCLAS STATE 027733 SIPDIS MOSCOW FOR DTRO-M/ACID GENEVA FOR JCIC E.O. 12958: N/A TAGS: PARM KACT START US RS UP BO KZ SUBJECT: U.S. DISPUTE OF RUSSIAN START BILLS REF: EMBASSY MOSCOW (DTRO-M/ACID) CABLE (DTG 271231Z FEB 09) ¶1. This is an action cable (see paragraph 3). ¶2. Summary and action request. The Defense Threat Reduction Agency (DTRA) has reviewed itemized cost lists and bills associated with the implementation of the Strategic Arms Reduction Treaty (START) (totaling 592,377.62 USD),and supporting documentation submitted by the Russian Nuclear Risk Reduction Center (RNRRC) for the period July 1, 2008, through December 31, 2008 (reftel). Based on this review, DTRA is disputing charges totaling 23,231.93 USD. In order to meet Treaty timelines, Embassy Moscow (DTRO-M/ACID) is requested to provide the information in paragraph 2 below to appropriate Russian Government NRRC officials at the earliest opportunity. End summary and action request. ¶3. Begin text: - The U.S. Defense Threat Reduction Agency (DTRA) has completed a review of Russian Nuclear Risk Reduction Center (RNRRC) START Treaty bills, totaling 592,377.62 USD, itemized cost lists, and supporting documentation for the current six month cost settlement billable period (July 1, 2008, through December 31, 2008). - Based on this review, DTRA is disputing charges totaling 23,231.93 USD for the following items: - Reference RNRRC bill 2008/2-1 (46,586.41 USD) for START cost category 1 (fuel for inspection airplanes). DTRA is disputing 7,106.39 USD from this bill for an 18 percent tax surcharge that was added to the fuel charges. DTRA is not authorized to pay for taxes in accordance with long-standing U.S. Government policy. DTRA notes the disputed amount was calculated using the dollar/ruble conversion factors specified in the RNRRC supporting documentation. - Reference RNRRC bill 2008/2-9 (5,795.90 USD) for START cost category number 9 (delivery of equipment and supplies, including foodstuffs, for continuous monitoring activities and transportation of monitors that arrive on such an airplane). DTRA is disputing this bill in its entirety. -- DTRA believes cost category number 9 does not apply in this case. -- DTRA believes the costs for goods and services indentified in RNRRC bill 2008/2-9, should instead be settled under cost category 7 (transportation of monitors and their baggage, and delivery of equipment and supplies, including foodstuffs) in accordance with subparagraph 19(e) of Section V of the Inspection Protocol. - Reference RNRRC bill 2008/2-11 (15,956.22 USD) for START cost category 11 (utilities and maintenance of the PPCMS). DTRA is disputing 10,329.64 USD from this bill. -- DTRA is disputing 1,040.00 USD from RNRRC Bill 2008/2-11 for "work of loaders." DTRA is not authorized to pay for personnel salaries in accordance with long-standing U.S. Government policy. -- DTRA is disputing 109.72 USD from RNRRC Bill 2008/2-11 for use of the "ZIL-130 dump truck." The RNRRC billed amount is based on use of a ZIL-130 dump truck for 81 hours; however, a review of RNRRC supporting documentation indicates a ZIL-130 dump truck was actually used for 77 hours. DTRA notes the disputed amount was calculated using a rate of 27.43 USD per hour of usage based on information provided in the RNRRC itemized cost lists. -- DTRA is disputing 8,424.03 USD from RNRRC Bill 2008/2-11 for "repair works in living area and de-ratization of building in living area" and "repair works." DTRA notes the RNRRC supporting documentation does not provide an itemized listing (with description) for these repairs and services. DTRA requests the RNRRC provide such additional information. Upon receipt, DTRA will make a final determination on the disputed billed charges. -- DTRA is disputing 35.06 USD from RNRRC Bill 2008/2-11 for "waste reception and disposal on the territory of "Spetskhozyaistvo." DTRA notes the 35.06 USD disputed amount is for a service overcharge based on the cost of this service (using the 1 USD=25.4307R and 1 USD =27.7351R dollar/ruble conversion factors specified in the supporting documentation) as identified in the RNRRC supporting documentation. DTRA requests the RNRRC provide clarification on this overcharge. Upon receipt, DTRA will make a final determination on this disputed billed charge. -- DTRA is disputing 102.11 USD from RNRRC Bill 2008/2-11 for a "tractor." DTRA notes that charges for a "Belarus" tractor provided on October 10, 2008, as identified in the RNRRC supporting documentation, was 34.04 USD (using the 1 USD =27.7351R dollar/ruble conversion factor specified in the supporting documentation). DTRA requests the RNRRC provide clarification on this overcharge. Upon receipt, DTRA will make a final determination on the disputed billed charge. -- DTRA is disputing 618.72 USD from RNRRC Bill 2008/2-11 for "grass mowing along perimeter." DTRA notes the only charges for grass mowing identified in the RNRRC supporting documentation is for worker salaries. As noted above, DTRA is not authorized to pay for personnel salaries in accordance with long-standing U.S. Government policy. - DTRA will be forwarding, to the account designated by the RNRRC, payment for undisputed charges totaling 539,812.69 USD (which takes into account the U.S. bill START-09-1 (totaling 29,333.00 USD) submitted by DTRA to the RNRRC for cost category 17 (training and maintenance for telemetry playback equipment, and the provision of spare parts and replacement parts for such equipment). End text. CLINTON