B-127662, JUN. 6, 1956

B-127662: Jun 6, 1956

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INC.: FURTHER REFERENCE IS MADE TO YOUR TELEFAX OF APRIL 19. THE ADMINISTRATOR OF GENERAL SERVICES ADVISED US REGARDING THE MATTER AS FOLLOWS: "AS WAS EXPLAINED BY MR. WHICH WAS THE HIGH BID AT THE PUBLIC AUCTION IN ASHTABULA ON MARCH 13. THE FINAL DECISION REGARDING ACCEPTANCE HAD TO BE MADE HERE BECAUSE THE ACQUISITION COST OF THE PROPERTY WAS OVER $2. WAS ACCEPTED MAY 1. WE ARE CONSIDERING THAT THIS MATTER HAS BEEN SETTLED TO YOUR SATISFACTION AND ARE CLOSING OUR FILE IN THE CASE.

B-127662, JUN. 6, 1956

TO STATE METALS AND STEEL CO., INC.:

FURTHER REFERENCE IS MADE TO YOUR TELEFAX OF APRIL 19, 1956, PROTESTING THE ALLEGED REJECTION OF YOUR BID FOR THE PURCHASE OF A GOVERNMENT-OWNED PLANT AT ASHTABULA, OHIO.

BY LETTER OF MAY 25, 1956, THE ADMINISTRATOR OF GENERAL SERVICES ADVISED US REGARDING THE MATTER AS FOLLOWS:

"AS WAS EXPLAINED BY MR. T. L. PEYTON AND MR. J. E. MOODY OF OUR STAFF AT A CONFERENCE WITH MR. WELCH AND MR. DONALD DUDLEY ON APRIL 26, WE DID NOT REJECT STATE METALS' BID, WHICH WAS THE HIGH BID AT THE PUBLIC AUCTION IN ASHTABULA ON MARCH 13. THE FINAL DECISION REGARDING ACCEPTANCE HAD TO BE MADE HERE BECAUSE THE ACQUISITION COST OF THE PROPERTY WAS OVER $2,000,000. AT THE TIME OF THE COMPANY'S PROTEST TO YOU NO FINAL ACTION HAD BEEN TAKEN.

"WE DISCUSSED THE SALE WITH STATE METALS REPRESENTATIVES IN ORDER TO SECURE AN OFFER MORE NEARLY COMMENSURATE WITH THE FAIR MARKET VALUE ESTABLISHED BY OUR APPRAISAL. AS A RESULT OF THESE NEGOTIATIONS THE OFFER OF THE COMPANY TO PURCHASE THE PROPERTY FOR $480,000, CASH ON CLOSING, WAS ACCEPTED MAY 1, SUBJECT TO ANTITRUST CLEARANCE BY THE DEPARTMENT OF JUSTICE AS REQUIRED BY LAW.'

IN VIEW OF THE ACCEPTANCE BY THE GENERAL SERVICES ADMINISTRATION OF YOUR OFFER TO PURCHASE THE PLANT, WE ARE CONSIDERING THAT THIS MATTER HAS BEEN SETTLED TO YOUR SATISFACTION AND ARE CLOSING OUR FILE IN THE CASE.