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B-195049 1 (1979-07-09)

handle is hein.gao/gaobadhjr0001 and id is 1 raw text is: .4 THE COMPTROLLER GENERAL DECISION . OF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-195049 DATE: July 9, 1979 MATTER OF: Douglas Studs, Inc. 67 Where Forest Service error in estimating acreage covered by Timber Sale results in approximately 45 percent undercut, timber sale contract may be modified to indicate acreage actually involved. Overcharges which resulted from error may be refunded. The United States Department of Agriculture Forest Service requests reformation of the Park Creek No. 3 Timber Sale contract awarded to Douglas Studs, Inc. (Douglas). Douglas was apparently overcharged for the timber purchse because acreage contained in the sale. The Park Creek No. 3 Timber Sale in the amount of $26,255.67 was awarded on a lump-sum payment basis for each of 15 separate units contained in the sale. The contract indicates that the fifteen units cover a total of approximately 240 acres with estimated total sale volume of ,1,121 million board feet of various timber species. /Shortly after commencing logging operations, Douglas advised the Forest Service of its concern that the Park Creek No. 3 sale was going to undercut. Since operations had just begun, both Douglas and the Forest Service decided not to take any action pending the com- pletion of cutting in some of the units. On completion of the work, Douglas advised the Forest Service of an undercut of approximately 45 percent and requested a refund of $11,662.10. The Forest Service denied this requett, stating it was not authorized to modify the contract. The sale in question was part of the fiscal year 1975 offering program for the Rio Grande National Forest. The agency explains that preliminary work on the sale was begun in the spring of 1974 and

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