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Viewing cable 09STATE27733, U.S. DISPUTE OF RUSSIAN START BILLS

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Reference ID Created Released Classification Origin
09STATE27733 2009-03-23 19:07 2011-08-24 01:00 UNCLASSIFIED Secretary of State
VZCZCXYZ0007
OO RUEHWEB

DE RUEHC #7733 0821924
ZNR UUUUU ZZH
O 231907Z MAR 09
FM SECSTATE WASHDC
TO RUEHMO/AMEMBASSY MOSCOW IMMEDIATE 0000
INFO RUEHGV/USMISSION GENEVA IMMEDIATE 0000
RUEAIIA/CIA WASHINGTON DC IMMEDIATE 0000
RHMFISS/JOINT STAFF WASHINGTON DC IMMEDIATE
RHMFIUU/DTRA ALEX WASHINGTON DC IMMEDIATE
RHMFIUU/DTRA DULLES WASHINGTON DC IMMEDIATE
RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
RHMCSUU/DEPT OF ENERGY WASHINGTON DC IMMEDIATE
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