Fedco, Inc. And the Travelers Indemnity Company v. United States of America Ex Rel. Fred O. Jones

The government of the United States installed an underground missile facility at Larsen Air Force Base in the state of Washington. Shortly after its completion many leales in the tunnel complex developed. The government employed welding in an effort to stop the leaks. This proved unsuccessful. At the time there was in existence a comparatively new chemical “grouting-” process which offered some promise in stopping the leaks. The Army Corps of Engineers decided to employ this process and entered into a contract with appellant, Fedco, Inc., to perform some “grouting” work. The contract price was $87,537.98.

Said contract contemplated that a qualified chemical grouting engineer should be provided by Fedco to supervise the entire grouting operation. Pursuant thereto, Fedco employed appellee, Fred O. Jones, acknowledged to be qualified. Under the terms of his employment Jones was to perform “all services required of Chemical Grouting Engineer” under Fedco’s contract with the government. He was to receive a fixed sum of $12,500 for his services.

On May 10, 1962, the grouting operation commenced. It proceeded effectively and smoothly. During the time that the work was in progress…