Board of Contract Appeals
                 General Services Administration
                      Washington, D.C. 20405



            __________________________________________

            DISMISSED WITH PREJUDICE: February 4, 2004
            __________________________________________


                          GSBCA 16257-ST


                     RATHE PRODUCTIONS, INC.,
                                 
                                         Appellant,

                                v.

                       DEPARTMENT OF STATE,

                                         Respondent.

    Edward J. Tolchin of Fettmann, Tolchin & Majors, Fairfax, VA, counsel for
Appellant.

    Dennis J. Gallagher and Luisa M. Alvarez, Office of the Legal Adviser, Department
of State, Rosslyn, VA, counsel for Respondent.

NEILL, Board Judge.

                              ORDER

    This case involves an appeal by Rathe Productions, Inc. (Rathe) from the deemed denial
of two claims.  The first claim, in the total amount of $481,422, is for the final two payments
said to be due pursuant to a memorandum of understanding (MOU) entered into with the
United States Information Agency.  As a result of subsequent organizational changes, the
MOU became the responsibility of the Department of State.  Rathe's second claim is for
$123,427.03.  This amount is said to represent funds which are the property of Rathe and
were generated by the claimant through its work at EXPO'98.  The Government allegedly has
refused to make the funds available to Rathe.  

    In mid-October 2003, in response to a Board order inquiring as to the status of this case,
counsel for Rathe filed a report on behalf of the parties.  The report stated that the claims had
been resolved in principle.  Counsel has since advised the Board that the settlement has been
finalized and that the appeal may now be dismissed with prejudice. 

    Accordingly, this case is DISMISSED WITH PREJUDICE.


                                        __________________________
                                        EDWIN B. NEILL
                                        Board Judge