Reimbursements for Services, Equipment and Supplies Furnished Between Government Agencies and Departments

B-197873: Apr 2, 1980

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GAO was asked whether their recent decisions addressed the issue of reimbursement of actual costs for all interagency transactions under the Economy Act. Furthermore, they were asked if interdepartmental loans of supplies, equipment, and materials could be made on a nonreimbursed accomodation basis. GAO held that the interdepartmental loans of services must be reimbursed only in cases where reimbursement was provided by prior written agreement between the agencies involved. Moreover, this rule neither nullified nor modified recent decisions which held that a loaning agency must recover its actual costs, including significant indirect costs, where reimbursement has been agreed upon in a prior writing. Additionally, GAO held that loans of supplies, equipment, and materials may be made on a non-reimbursed basis for a temporary period and in cases where the borrowing agency agrees to assume the costs incurred by reason of the loan. However, transfers which are or may become permanent must be made on a reimbursable basis in order to comply with the Economy Act.