In the Matter of the Appeal of January 21, 1977

 CONTRACT MASTER SERVICES, INC.
 P. O. Box 124
 Cheltenham, Maryland 20623 
 
 P.S. Docket No. 5/18
 
 APPEARANCES FOR APPELLANT: 		John F. Wolf, Sr., Esq.
					Chevy Chase, Maryland
 					
 APPEARANCES FOR RESPONDENT:
				 	Michael J. Vandamm, Esq.
 					Law Department
					U.S. Postal Service
					Washington, D.C.

 Lussier, Edward F.  

Contract Master Services, Inc., has filed a timely appeal from the December 20, 1976, decision of the Assistant Postmaster General, Logistics Department, extending the previously imposed suspension of the contractor for an additional 120 days. The basis for the extension is the continuing investigation by the Department of Justice. Under date of December 28, 1976, the Assistant United States Attorney confirmed earlier advice given to Postal Service Counsel on December 20, 1976, that the case has not been presented to the grand jury for indictment because he had agreed to meet with Mr. Lanier's counsel and accountant and consider certain defenses which were being raised to the proposed criminal charges. The Assistant United States Attorney advised in the letter that he had the meeting, followed it up with further investigation and has now concluded that he should proceed with the criminal proceedings to which end he intends to present an indictment to the grand jury "shortly after the first of the year."

In view of the decision to institute prosecutive action there is a reasonable basis to extend the suspension. It is pointed out, however, that the applicable regulation, Section 1-605.2(c) of the Postal Service Contracting Manual, provides that "In no event shall extensions of a suspension exceed in the aggregate a period of 1 year unless a debarment proceeding or a prosecutive action is pending ***." Therefore it is expected that whatever action is to be taken by the Department of Justice will be promptly pursued.