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B-168352 1 (1970-04-03)

handle is hein.gao/gaobabksq0001 and id is 1 raw text is: Of 0 0 LE ,a 0 COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D C 20548 B-168352 APR 3 1970 Dear Mr. Teague: Reference is made to your letter dated October 30, 1969, bringing to our attention certain statements by Mr. Norman L. Heikes regarding irregularities in the leasing by the General Services Administration (GSA) of office space in Goleta, California, for the Forest Service and your letter dated February 5, 1970, transmitting a series of articles on the subject as they appeared in the Santa Barbara News-Press. We reviewed records of GSA and the Forest Service pertaining to leasing the space and GSA's record of investigation of Mr. Heikes' statements. We also inspected the building which was constructed to provide the leased space. Discussions were held with Mr. Heikes, GSA and Forest Service representatives the lessor, other offerors or their agents, and Santa Barbara County engineers. Mr. Heikes, a Forest Service employee, presented his statements in a letter to the Forest Service in October 1968. The letter con- tained the following summary views. W***Briefly, I would summarize my position as a belief that there has been a very serious fiscal irregularity committed with respect to the negotiations for, and sub- sequent acquisition of, the new Forest Service building located at 42 Aero Camino in Goleta, California.,1 it * _q * K ',**there would appear to be no other conclusion possible than that the successful bidder apparently knew something that the others did not, or was accorded some special privilege. Our review did not disclose evidence of fiscal irregularity or collusion in connection with the leasing. However, the lessor did not comply fully with the lease provisions relating to construction of the building and there were weaknesses in administration of the lease. The construction deficiencies have now been corrected and precautions have been taken that should avoid recurrence of the administrative weaknesses.

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