bid basis and discussed a pessible change in policy to permit
negotiations for renewal of these leases. He pointed out that
Representative Dempsey had introduced legislation which weuld
allow AEC to negotiate renewal of commercial leases. He said,
however, that the staff recommended that the present concession
leasing policy be continued because this arrangement seemed to
assure fair treatment to all interested parties and to provide the
most favorable financial return to the Goverament, General
Starbird said that bids already had been received on a number
of concessions whose leases were about to expire, and pointed
out that, if action on the renewal of these leases were not
taken soon, the bid bonds posted by the individuals interested
in obtaining the concessions would expire.
During the above discussion, Mr. Strauss entered the
meeting.
General Sterbird referred to a Los Alamos drug store
lease which was about te expire, and said the present drug store
operator had submitted a bid substantially below several other
bids and therefore less favorable financially to the Government
than the other bids, The staff recommended that the high
bidder be awarded the lease, Mr. Murray indicated that he
agreed with this position and remarked that bids on the drug
store lease had been submitted ir good faith. Therefore, he
said he believed that the Commission was obliged to accept the
highest bid among those determined to be competent operators,
Mr. Mitchell observed that the bids had been invited in
accordance with the announced Commission policy on renewai
of commercial leases, and said the staff believed that the Com-
mission ought to award the drug store lease on the basis of
the bids submitted. Mr. Strauss indicated that he was inclined
to accept the General Manage~'s recommencation,
Mr, Libby and Mr, Vance then inquired whether it would be
possible to defer action on the drug store lease until Congress
acted on Representative Dempsey’s bill, Mr. Vance suggested
that, if this bill is passed, the Commissicn ciscontinue its
- 406 -