[Request for Authorization To Settle Claim]

The General Services Administration (GSA) requested GAO authorization to settle a claim based on the performance of a contract with the now defunct National Commission on Air Quality. After the Commission terminated its activities, GSA was authorized to pay outstanding invoices and to perform other tasks necessary for the liquidation of the Commission's assets and liabilities. The claimant contended that there was a labor and subcontractor cost overrun due to an error in its contract. The Commission terminated its activities before taking action on the claim; however, the contracting officer stated that both the increased subcontractor costs and a higher administrative expenses rate were allowable. GSA and the claimant agreed to a full settlement amount subject to GAO approval, and GSA stated that funds sufficient to pay the settlement were available for obligation. Since GSA and the claimant agreed to full settlement at an amount which GAO found reasonable, payment of the amount was approved.