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B-201138 1 (1981-02-23)

handle is hein.gao/gaobadjdf0001 and id is 1 raw text is: I - '*~~j~ THE COMPTROLLER GENERAL DECISION OF THE UNITED TATES WNASH INGTON. 0 CB04 FILE: B-201138 OATE:February 23, 2.981 MATTER OF: Forest Service--Request for Advance Decision DIGEST: Canceled contract may not be reinstated where agency lacks reasonable assurance of obtaining lowest possible price by reinstating contract rather than com- petitively procuring its requirements. LThe Director of Administrative Services, Forest Service-,, Department of Agriculture, has forwarded to our Of ice a request for an advance decision as the ropriety of reinstating a canceled contract and amending its terms to compensate the contracto for i escalation in labor and material costs since the cancellation>. For the reasons stated below, the contract may not be reinstated. On July 5, 1979, the Forest Service awarded a fixed-price contract of $1,299,774.57'to Norm Lange for the construction of timber sale roads in Gifford Pinchot National Forest', Washington. A notice to proceed was issued on July 30, 1979 and work pro- gressed through November 20, 1979, when winter conditions forced suspension of the work. On May 18, 1980,,prior to resumption of work by the contractor during the following construction season, Mt. St. Helens, a volcano west of the project site, erupted with major ash fallout occurring in its vicinity. 4'or safety reasons, the area surrounding Mt. St. Helens, including the project site, was closed to all entry by executive order of the Governor of the State of Washington and by the Forest Supervisor, Gifford Pinchot National Forest. Construction on the project was therefore completely halted and on June 25, 1980, the contracting officer canceled the contract because of impossibility to perform. '; Subsequently, a meeting SMOO

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