DISMISSED:  April 14, 1997
                                                    


                                GSBCA 14047


                          PEACE INDUSTRIES, LTD.,

                                        Appellant,

                                    v.

                     GENERAL SERVICES ADMINISTRATION,

                                        Respondent.

     Thomas E. Buess of Rosenstein and Buess, Chicago, IL, counsel
for Appellant.

     Wendy Nevett Bazil, Office of General Counsel, General
Services Administration, Washington, DC, counsel for Respondent.

GOODMAN, Board Judge.

                                   ORDER

     On July 28, 1995, Peace Industries, Ltd., was awarded a
requirements contract by the General Services Administration to
supply staplers for the period July 28, 1995, through June 30,
1996.  On October 4, 1996, appellant's contract was terminated for
default for alleged nonconforming staplers and the Government
demanded payment from appellant in the amount $143,218.25 for the
allegedly defective staplers.  Appellant filed an appeal of the
contracting officer's decision with this Board on December 26,
1996.

     Shortly after the filing of the appeal, the parties entered
into settlement negotiations.  On April 3, 1997, the Government
filed a motion to dismiss stating that the parties have entered
into a settlement agreement.  Counsel for appellant concurs with
the motion.  Accordingly, this appeal is DISMISSED.  Rule 128.





                                   _______________________
                                   ALLAN H. GOODMAN
                                   Board Judge