dated July 17, 1981, from Lester Edelman to The Honorable Carl M. Levin).
61. Soon afterwards, on July 28, 1981, while questioning the Deputy Secretary of Defense, Mr. Carlucci, during Senate hearings, Senator Levin strongly criticized the Corps and the Department of Defense for doing business with the river bank contractors, and added that he found the continued contracting to be "unbelievable." Mr. Carlucci responded that he would look into the matter. (Plaintiff's Exhibit No. 4 at 2-3).
62. Within two days of this hearing, the Assistant to Mr. Carlucci gave the Chief of Engineers of the Corps a copy of an AP press release describing Senator Levin's criticism of Mr. Carlucci, and requested, on behalf of Mr. Carlucci, that the Chief of Engineers provide "ASAP" a "fact sheet" concerning the Corps' contracting practices in 1978. Such a fact sheet was prepared on July 31, 1981, by the Assistant Chief of Engineers. (Document entitled "Disposition Form" dated July 31, 1981, from Brigadier General W. G. Delbridge, Jr., Assistant Chief of Textenf).
63. Also on July 31, 1981, Senator Levin followed up his questioning of Mr. Carlucci with a letter to the Secretary of Defense, Caspar Weinberger, requesting detailed information regarding, among other things, the Corps' recommended debarment or suspension proceedings against the river bank firms and the procedures for pursuing a debarment or suspension. Copies of this letter were sent to Mr. Carlucci, the Chief of Engineers, and to the Secretary of the Army. (Letter dated July 31, 1981, from Senator Levin to The Honorable Caspar W. Weinberger, Secretary of Defense).
64. Senator Levin's questions to Mr. Weinberger were passed down through Department of Defense channels to the Corps to be answered. (Testimony of Lester Edelman).
65. Within 10 days of the Congressional hearing and several days after Senator Levin's letter, Mr. Edelman also received an unusual number of requests from other highly-placed Department of Defense and Army officials for information concerning the Corps' dealings with the river bank stabilization contractors. (Testimony of Lester Edelman). In response to these requests, Mr. Edelman briefed several officials-including the General Counsel of the Army, the Assistant Secretary of the Army for Civil Works, and the Special Assistant Secretary of Defense-on the Corps' position with respect to debarment of the river bank contractors. (Testimony of Lester Edelman).
66. Although from 1978 until the foregoing actions by Senator Levin and defendants in late July and early August of 1981, the Corps had continued to contract with the river bank contractors, including Kiewit, and had recommended no debarment of them, within days after these actions the Corps issued its directive of August 19, 1981, suspending awards to the river bank contractors.
67. In conversations in which Kiewit inquired about the August 19, 1981 directive, Mr. Edelman referred to Senator Levin's criticisms at the July 28, 1981 hearings. (Testimony of Lester Edelman).
68. Senator Levin's criticisms of the Department of Defense and the Corps were reported by the press. For example, in an article published in the St. Louis Post Dispatch, written in September of 1981, the Senator's questioning of Mr. Carlucci and his letter to the Secretary of Defense were noted, as was the Corps' continued contracting with the river bank contractors. (Plaintiff's Exhibit No. 17).
69. Subsequently, Senator Levin made statements to the press, stating, for example, that he saw "no solid, justifiable reasons" why the river bank companies should not be debarred. (Plaintiff's Exhibit No. 17: Kansas City Star, October 18, 1981). The Corps was aware of these statements. (Testimony of Lester Edelman).
70. One of the principal factors in the Corps' decision to suspend awards to the river bank contractors, including Kiewit, was the public's perception of the Corps, as represented, in part, by such publicity. (Testimony of Lester Edelman).
71. On September 23, 1981, the Secretary of the Army responded in detail, on behalf of the Secretary of Defense, to Senator Levin's July 31, 1981, letter. (Letter dated September 23, 1981, from John O. Marsh, Jr., to the Honorable Carl M. Levin).
72. In late-October, 1981, Kiewit's counsel, Richard L. Coyne, asked General Heiberg, the Corps' Director of Civil Works, whether award of the Barbers Point contract was going to be made to Kiewit. General Heiberg replied that he would recommend award but that, if he did so, it might "stir up" Senator Levin on the debarment issue again, and be detrimental to Kiewit on the ultimate debarment question. (Testimony of Richard L. Coyne).
73. General Heiberg subsequently did attempt to have the Barbers Point contract awarded to Kiewit, but his efforts were blocked by higher authorities because of concern for future Congressional criticism. (Testimony of Richard L. Coyne).
74. The potential for such future Congressional criticism of the Corps was considered by the Corps in making its procurement decisions with regard to the river bank contractors. (Testimony of Lester Edelman).
75. On January 12, 1982, subsequent to the institution of this case and the commencement of debarment proceedings by JAG against Kiewit, Senator Levin wrote the Secretary of the Army asking further questions about the river bank contractors, and asking, with specific reference to Kiewit, the following:
I have just received word that at least one of the firms, Peter Kiewit Sons' Company, recently received notice of proposed debarment from the Office of Judge Advocate General, and that the firm has participated in an administrative hearing concerning the proposed debarment. Why was I not informed of this new development?
3) With respect to Peter Kiewit Sons' Company, when do you expect to make a final decision on debarment based on the administrative hearing? Is the company currently under consideration for any additional contract awards? If so, are there any other bidders on such contracts capable of performing the work on said contracts?