Ertan and Susan Eren - Page 5

                                                   -5-                                                     
            Petitioner was required to maintain a daily log describing the work                            
            progress on the construction site.                                                             
                  Pursuant to a February 21, 1989, memorandum that supplemented                            
            the November 10, 1988, memorandum, petitioner was given authority                              
            to substitute materials, equipment, and/or products for the                                    
            construction of the Bogota annex so long as they were equal to or                              
            better than those specified in the contract, and the substitution                              
            did not entail an additional cost to the government.                                           
                 During the year under consideration, petitioner was required                             
            to submit two types of monthly reports regarding the progress of                               
            the construction of the Bogota annex to the FBO area branch chief                              
            for construction management.  One was a telegraphic report that                                
            had to be sent before the 10th of each month; the other was a                                  
            written report kept in book form.  The reports included statements                             
            of progress and problems incurred  or  anticipated  in  the                                    
            construction of the annex.  FBO had the right to terminate                                     
            petitioner's contract if he failed to submit these monthly reports.                            
            The Bogota Project Budget                                                                      
                  When petitioner was assigned to a project post, he was                                   
            required to prepare a budget proposal and submitted it to FBO for                              
            approval.  With regard to the Bogota annex project, FBO approved                               


            3(...continued)                                                                                
            petitioner inspected the job site to ensure that the contractor                                
            was performing satisfactory work.                                                              





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