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B-168964 1 (1970-05-11)

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B- 168964


RELEASED


MAY I 1 1970


Dear Senator Jordan:

      This is in further response to your letter of January 27, 1970,
 requesting our review of and comments on the contracting for the
 Carlsbad Caverns National Park concession. The contract for the con-
 tinued operation of the concession by the Cavern Supply Company, In-
 corporated (Cavern), became effective on March 6, 1970, when it was
 signed by the Assistant Director, National Park Service This con-
 tract, for the period January 1, 1970, through December 31, 1989, su-
 persedes the previous contract with Cavern which was for the period
 April 1, 1952, to December 31, 1971.

      The new contract was initiated at the suggestion 'f Cavern in
support of its proposed improvement progiam estimated to cost at
least $142,500 On June 14, 1969, notice of the Department of the Inte-
riorts intent to negotiate a contract with Cavern for the continued oper-
ation of the Carlsbad Caverns National Pazk concession was published
in the Federal Register. The notice stated that Cavern had performed
its obligations to the satisfaction of the National Park Service and
therefore was entitled to preference in the negotiation of the contract
but that the Secretary of the Interior was required to consider and
evaluate all proposals received for operating the concession

      On June 18, 1969, the National Park Service, in response to a
telephone request, furnished Pickett Food Service, Inc. (Pickett), with
a copy of the fact sheet stating the terms and conditions under which
the contract would be negotiated The fact sheet, the conditions of
which Cavern had previously found acceptable, included the following
information:

      1. Cavern had conducted its operations under the existing
         contract in a manner satisfactory to the Secretary of the
         Interior.

      2. The act of October 9, 1965 (16 U.S.C. 20), provides that the
        Secretary of the Interior encourage continuity of operations by
        giving preference to concessioners who performed satisfacto-
        rily under prior contracts.


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