B-118345, MARCH 24, 1954, 33 COMP. GEN. 403

B-118345: Mar 24, 1954

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WHICH PROVIDES THAT EQUIPMENT AND MACHINERY RENTAL RATES WILL BE PAID AT CURRENT STANDARD RATES PRESCRIBED IN SCHEDULE OF EQUIPMENT RATES ISSUED BY GENERAL MANAGERS ASSOCIATION OF CHICAGO. WHICH SCHEDULE PROVIDES THAT MINOR OR RUNNING REPAIRS ARE INCLUDED IN RENTAL RATES CHARGED FOR EQUIPMENT. EQUIPMENT USED IN PERFORMING THE CONTRACT WORK ARE NOT PROPER FOR REIMBURSEMENT UNDER THE TERMS OF THE CONTRACT. WITH THE REQUEST THAT AN ADVANCE DECISION BE RENDERED AS TO WHETHER PAYMENT THEREON IS AUTHORIZED. THE QUESTION PRESENTED FOR CONSIDERATION IS WHETHER CHARGES MADE FOR THE SERVICES AND LIVING EXPENSES OF A REPAIRMAN FOR MAINTAINING CERTAIN POWER TOOLS AND EQUIPMENT USED IN PERFORMING THE CONTRACT WORK WERE PROPER FOR REIMBURSEMENT UNDER THE TERMS OF THE CONTRACT.

B-118345, MARCH 24, 1954, 33 COMP. GEN. 403

CONTRACTS - COST PLUS - EQUIPMENT MAINTENANCE COSTS AS PART OF RENTAL RATES UNDER COST REIMBURSABLE CONTRACT, WHICH PROVIDES THAT EQUIPMENT AND MACHINERY RENTAL RATES WILL BE PAID AT CURRENT STANDARD RATES PRESCRIBED IN SCHEDULE OF EQUIPMENT RATES ISSUED BY GENERAL MANAGERS ASSOCIATION OF CHICAGO, WHICH SCHEDULE PROVIDES THAT MINOR OR RUNNING REPAIRS ARE INCLUDED IN RENTAL RATES CHARGED FOR EQUIPMENT, CHARGES MADE FOR THE SERVICES AND LIVING EXPENSES OF A REPAIRMAN FOR MAINTAINING POWER TOOLS, AND EQUIPMENT USED IN PERFORMING THE CONTRACT WORK ARE NOT PROPER FOR REIMBURSEMENT UNDER THE TERMS OF THE CONTRACT.

COMPTROLLER GENERAL WARREN TO LIEUTENANT COLONEL J. E. WINDHAM, DEPARTMENT OF THE ARMY, MARCH 24, 1954:

THERE HAS BEEN RECEIVED BY SECOND ENDORSEMENT DATED JANUARY 14, 1954, YOUR COMMUNICATION OF JANUARY 5, 1954, TRANSMITTING UNNUMBERED VOUCHER, IN THE AMOUNT OF $5,878.38, STATED IN FAVOR OF THE ILLINOIS CENTRAL RAILROAD COMPANY, FOR SERVICES FURNISHED UNDER CONTRACT NO. DA 22-052-ENG-3394, DATED JANUARY 22, 1952, WITH THE REQUEST THAT AN ADVANCE DECISION BE RENDERED AS TO WHETHER PAYMENT THEREON IS AUTHORIZED.

THE QUESTION PRESENTED FOR CONSIDERATION IS WHETHER CHARGES MADE FOR THE SERVICES AND LIVING EXPENSES OF A REPAIRMAN FOR MAINTAINING CERTAIN POWER TOOLS AND EQUIPMENT USED IN PERFORMING THE CONTRACT WORK WERE PROPER FOR REIMBURSEMENT UNDER THE TERMS OF THE CONTRACT.

ARTICLE 12 (C) OF THE CONTRACT PROVIDES THAT EQUIPMENT AND MACHINERY RENTAL RATES WILL BE PAID AT THE CURRENT STANDARD RATES PRESCRIBED BY THE SCHEDULE OF EQUIPMENT RENTAL RATES ISSUED BY GENERAL MANAGERS ASSOCIATION OF CHICAGO OR SUPPLEMENT THERETO. GENERAL DECISION 4 OF CIRCULAR NO. GMA- 2636-B, ISSUED BY THAT ASSOCIATION AS OF FEBRUARY 1, 1951, PROVIDES IN EFFECT THAT, SINCE RUNNING REPAIRS THAT ARE MADE WHILE THE MACHINES ARE IN SERVICE IN THE FIELD ARE USUALLY OF A MINOR NATURE AND ARE MADE TO AVOID DELAYS, THE COST OF SUCH REPAIRS SHOULD BE INCLUDED IN THE RENTAL RATES CHARGED FOR THE EQUIPMENT. THUS, IT APPEARS THAT THE AMOUNTS PREVIOUSLY PAID THE CONTRACTOR AS RENTAL FOR THE EQUIPMENT SHOULD BE REGARDED AS HAVING INCLUDED THE COST OF THE REPAIRS HERE INVOLVED.

ACCORDINGLY, AND SINCE THIS ITEM OF COST HAS NOT BEEN APPROVED BY THE CONTRACTING OFFICER AS CONTEMPLATED BY ARTICLE 12 (A) OF THE CONTRACT, THE VOUCHER IS RETURNED HEREWITH AND YOU ARE ADVISED THAT, ON THE BASIS OF THE PRESENT RECORD, PAYMENT THEREON IS NOT AUTHORIZED.

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