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B-188548 1 (1979-11-08)

handle is hein.gao/gaobadhsg0001 and id is 1 raw text is: I I ~A -, 1~


                 TH COPTOLE GENERAL
DECISION                OF  THE   UNITED STATES
                        WASHINGTON, D. C. 20548


B-188548


DATE:  November 8, 1979


Willamette Industries, Inc,-- ei.-63


        DIGEST:


             Claim  for unamortized road contruction
             costsresulting  from 39-percent dis-
             crepancy between estimated timber volume
             and  actual timber volume cut, is denied
             where:   (1) record fails to Pemblish    .4PP/
             that  the F est Servic  grossly dis-
             regarded applicable factors and pro-
             cedures  in preparing estimate; (2)
             there  is no basis upon which to con-
             clude  that limited warranty (that
             road  construction costs would be fully
             amortized) existed; and (3) volume esti-
             mate  39 percent under actual volume does
             not constitute gross error.

             The Department of Agrigult   ,   ited  tates
         Forest Service, requests our decision concerning the
         claim of Willamette Industries, Inc. (Purchaser), for
         $58,004.87 to make up a deficit in road credit conver-
         sion which resulted from a 39-percent-volume underrun
         on the Green Mountain Timber Sale, Willamette National
         Forest.           .

              The gist of the Purchaser's claim is that the
         underrun on the Green Mountain sale is attributable
         to the Forest Service's error in computing the net
         volume of merchantable timber. The Purchaser believes
         that the Forest Service, in arriving at the estimate
         included in the sale document, failed to apply any
         factor for hidden defect and breakage.

              The Forest Service provided the Purchaser a timber
         sale prospectus which showed 6,600 MBF as the estimated
         quantity of timber and 35 percent as the estimate of
rr~'   /f


106I


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