[Request for Reimbursement Under Maintenance Agreement]

B-210833: Aug 4, 1983

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The Assistant Comptroller of the Army for Finance and Accounting requested an advance decision regarding reimbursement under an agreement between Rhode Island and the National Guard for snow removal services at an Air National Guard (ANG) base. Under the agreement, the Federal Government was authorized to reimburse the State for 75 percent of the expenses incurred in performing services and maintenance at ANG facilities. The agreement also permitted the State to contract for the services. The base civil engineer stated that the contractor for the State should be paid only for hours on the site, although Rhode Island recommended payment of the voucher as submitted. The base civil engineer also stated that the contractor had not provided an adequate number of vehicles to properly conduct snow removal operations and terminated the contract for the convenience of the Government. Accordingly, GAO found that the voucher was not for payment as submitted since the contract provided for acceptance of the work by the base civil engineer. However, GAO did not object to payment on the basis proposed by the base civil engineer, because it represented a reasonable cost of the termination of the contract.