The opinion of the court was delivered by: GREEN
Joyce Hens Green, United States District Judge:
Plaintiff Howes Leather Company, Inc., a disappointed bidder, instituted this action in 1981 challenging defendants' decision in February 1981 not to accept plaintiff's bids for certain lots of excess government stockpile "quebracho," a vegetable tannin extract used in leather tanning operations. Plaintiff alleges that defendant General Services Administration ("GSA")
abused its discretion, acted outside the scope of its statutory authority, and violated the antitrust laws. The matter now comes before the Court on the parties' cross-motions for summary judgment. For the reasons set forth below, the motion of defendants is granted.
Under the Strategic and Critical Materials Stock Piling Act ("Stockpiling Act" or "Act"), 50 U.S.C. §§ 98 to 98h-4 (1951 & Supp. 1987), the government stockpiles various materials, including quebracho, to ensure wartime availability. When the government supply exceeds potential wartime needs, GSA
is authorized to dispose of materials through formal advertising and competitive negotiation procedures. Id. § 98e(a), (b).
Plaintiff, one of the nation's largest quebracho consumers, tendered sealed bids on eight specific lots of quebracho, totaling 1,627,456 pounds (or 726.5 long tons), at a price between $.1927/lb. and $.2482/lb (or a weighted average of $ 0.2182/lb). Defs. Facts, para. 18. Plaintiff was the sole bidder on seven of the eight lots, and submitted the second lowest weighted average bid price of the seven firms that made offers to buy.
Announcing that it had arrived at a cut-off price of $.2588/lb. for all quebracho lots, GSA did not accept plaintiff's bids and kept the lots on which plaintiff had bid available for future sale. The array of bids and awards was as follows:
Bidder Lots Lbs. Price Range
Pilar River Plate Corp.
bid & award: 5 448,514 $.2601 -.2742
Middlesboro Tanning Co.
bid: 5 1,119,977 .2546 -.2630
award: 4 895,977 .2588 -.2630
L. H. Lincoln & Sons, Inc.
bid & award: 1 56,000 .2618
Pfister & Vogel Tanning
bid: 5 807,466 .2000 -.2626
award: 2 457,370 .2626
Eberle Tanning Co.
bid: 1 224,000 .2000
award: 2 117,668 .2311 -.2511
Howes Leather Co., Inc.
bid: 8 1,627,456 .1927 -.2482
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