[Request for Reconsideration of Advance Decision]

The Army requested reconsideration of a decision which denied a state's claim from the government for reimbursement of costs resulting from the termination of a contract at an Air National Guard base. GAO noted that a prior agreement provided that the government would reimburse the state for normal expenses incurred in rendering services to the facility. Further, the state had already reimbursed the contractor at the time of the initial decision. GAO held that the state reasonably assumed that reimbursement was a normal expense in its contract relationship and that such a payment was proper. Accordingly, the prior decision was modified to allow reimbursement to the state.