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B-186827 1 (1976-09-03)

handle is hein.gao/gaobaddaa0001 and id is 1 raw text is: 'THE COMPTRO~LLER 0 F-iEEAL ri 70 1 TH E U rk IT E C TAT E S 0, i-. WASHINGTON, D.C. 2D548 FILE: B-186827 DATE: September 3, 1976 MATTER OF: Sierra Pacific Industries DIGEST: Where Forest Service cannot obtain access to haul routes for purchaser under timber sales contract on date specified in contract and use of least expensive alternate haul route will result in in- creased costs to purchaser, contracts may be modi- fied to reduce advertised and bid rates to amounts agreed to by Forest Service and purchaser, provided that purchaser agrees that such action extinguishes any cause of action it may have as result of its inability to use original haul routes. The Assistant Secretary of Agriculture requests an advance decision concerning the propriety of modifying two timber sales contracts for the Mill Creek and Res timber sales on the Six Rivers National Forest by lowering advertised and bid rates. The Forest Service, in advertising and making award of these two timber sales contracts to Sierra Pacific Industries (Sierra-Pacific),contemplated that the timber harvested from the two sales would be hauled over existing roads on the Hoopa Indian Reservation after reconstruction of such roads was completed by the Forest Service. After award the Hoopa Tribal Council decided not to agree to issue a right-of-way permit to the Forest Service. Instead, the Council informed the Forest Service that a toll of $7-$8 per thousand board feet would be required for any timber hauled over those routes from the two sales. This action in effect negated the portions of the contract dealing with use of the roads on the Hoopa Indian Reservation. The Forest Service reports that reconstructing and using alternate haul routes would now appear to be the most advantageous manner to operate the sales; however, significant increases ($96,139 for the Mill Creek sale and $137,900 for the Res sale) in hauling and road maintenance costs would result from use of the alternate haul routes. - l -

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