FOR IMMEDIATE RELEASE                                         CIV
FRIDAY, OCTOBER 10, 1997                           (202) 616-2765
                                               TDD (202) 514-1888

                                 

      TRENDWAY PAYS U.S. $1.25 MILLION TO SETTLE ALLEGATIONS
     IT FAILED TO TELL GOVERNMENT ABOUT ITS PRICING PRACTICES


     WASHINGTON, D.C. -- A government contractor will pay the
United States $1.25 million to settle claims it overcharged the
General Services Administration for furniture because it didn't
offer GSA the same discount it gave commercial customers, the
Department of Justice announced today.

     Assistant Attorney General Frank Hunger of the Civil
Division said the settlement resolves allegations that Trendway
Corporation of Holland, Minnesota, failed to provide accurate
pricing information to GSA contract negotiators for systems
furniture so that GSA paid more than it should have. 
 
     "This agreement was settled through the use of an
alternative dispute resolution proceeding," said Hunger.  "The
Attorney General has asked litigating units like the Civil
Division to employ ADR when possible in an effort to settle
disputes faster and more efficiently.  We are pleased this case
could be settled through ADR." 

    Trendway was required by law to disclose its pricing
practices to the government.  The overcharges were discovered by
GSA's Office of Inspector General during an audit of the Trendway
contract.

     The case was mediated by an independent mediator selected by
the government and Trendway.  The Department presented the case
to the mediator on behalf of GSA.
                              #####
97-426