B-117185, NOV 6, 1953
Highlights
REQUESTING A DECISION WHETHER PAYMENT IS AUTHORIZED ON THE VOUCHER THEREWITH SUBMITTED IN THE AMOUNT OF $3. WHILE THE AMOUNT ADMINISTRATIVELY DETERMINED TO BE DUE ON THE VOUCHER SUBMITTED IS BASED ON THE FORMULA SET FORTH IN PARAGRAPH 7 OF THE LEASE THE FILE DISCLOSES THAT HERETOFORE PAYMENTS HAVE BEEN MADE THROUGH OCTOBER 1951 AT THE MAXIMUM RENTAL RATE STIPULATED IN SAID PARAGRAPH 7 WITHOUT CHECKING THE CITY'S RECORDS AS REQUIRED TO BE MAINTAINED BY IT UNDER PARAGRAPH 15 OF THE LEASE AND REGARDLESS OF WHETHER THE ALLOWABLE MAINTENANCE COSTS JUSTIFIED SUCH PAYMENTS UNDER SUCH FORMULA. PAYMENTS HAVE BEEN MADE AT THE MAXIMUM RATE WITHOUT REGARD TO WHETHER THE ALLOWABLE MAINTENANCE COSTS AND WEIGHT FREQUENCY FORMULA JUSTIFIED SUCH PAYMENTS.
B-117185, NOV 6, 1953
PRECIS-UNAVAILABLE
CAPTAIN J. H. LIVINGSTON, USAF:
BY LETTER DATED SEPTEMBER 15, 1953, THE DIRECTOR OF FINANCE, DEPARTMENT OF THE AIR FORCE, FORWARDED TO THIS OFFICE YOUR LETTER OF AUGUST 6, 1953, WITH ENCLOSURES, REQUESTING A DECISION WHETHER PAYMENT IS AUTHORIZED ON THE VOUCHER THEREWITH SUBMITTED IN THE AMOUNT OF $3,032.43 STATED IN FAVOR OF THE CITY OF BIRMINGHAM. THE VOUCHER COVERS THE AMOUNT ALLEGED TO BE DUE AS THE GOVERNMENT'S PRO RATA SHARE OF THE MAINTENANCE COST OF THE LANDING AREA OF THE BIRMINGHAM MUNICIPAL AIRPORT FOR THE PERIOD NOVEMBER 1, 1951, THROUGH APRIL 30, 1952, UNDER LEASE NUMBER 3-01-076-ENG-2216, DATED AUGUST 14, 1948, AS RENEWED, TOGETHER WITH AN ITEM OF $212.30 FOR REPLACEMENT OF A DEMOLISHED RUNWAY LIGHT AND ANOTHER ITEM OF $569.63 FOR REPAIRS TO TRACK NUMBER G-8, GATE CITY BRANCH.
WHILE THE AMOUNT ADMINISTRATIVELY DETERMINED TO BE DUE ON THE VOUCHER SUBMITTED IS BASED ON THE FORMULA SET FORTH IN PARAGRAPH 7 OF THE LEASE THE FILE DISCLOSES THAT HERETOFORE PAYMENTS HAVE BEEN MADE THROUGH OCTOBER 1951 AT THE MAXIMUM RENTAL RATE STIPULATED IN SAID PARAGRAPH 7 WITHOUT CHECKING THE CITY'S RECORDS AS REQUIRED TO BE MAINTAINED BY IT UNDER PARAGRAPH 15 OF THE LEASE AND REGARDLESS OF WHETHER THE ALLOWABLE MAINTENANCE COSTS JUSTIFIED SUCH PAYMENTS UNDER SUCH FORMULA. UNDER THE TERMS OF PARAGRAPH 7 OF THE LEASE THERE APPEARS NO LEGAL BASIS FOR PAYMENT OF THE MAXIMUM RATE OF $4,500 PER ANNUM UNLESS JUSTIFIED PURSUANT TO THE FORMULA SET FORTH THEREIN. IN THE CIRCUMSTANCES AND SINCE THE RECORDS SHOW THAT PRIOR TO NOVEMBER 1, 1951, PAYMENTS HAVE BEEN MADE AT THE MAXIMUM RATE WITHOUT REGARD TO WHETHER THE ALLOWABLE MAINTENANCE COSTS AND WEIGHT FREQUENCY FORMULA JUSTIFIED SUCH PAYMENTS, THE VOUCHER TOGETHER WITH THE SUPPORTING PAPERS WILL BE RETAINED HERE FOR DIRECT SETTLEMENT BY THE CLAIMS DIVISION OF THIS OFFICE. FOR USE IN CONSIDERATION OF THE MATTER THERE SHOULD BE FORWARDED TO THE DIRECTOR, CLAIMS DIVISION, AT THE EARLIEST PRACTICAL DATE, A REPORT CONCERNING THE DISPOSITION OF INVOICE FOR $569.63 TOGETHER WITH AN ADMINISTRATIVE AUDIT REPORT SHOWING THE RESPECTIVE AMOUNTS DUE BY THE GOVERNMENT FOR THE ORIGINAL TERM AND EACH RENEWAL TERM THEREAFTER THROUGH JUNE 30, 1950, TOGETHER WITH CITATIONS TO RENTAL VOUCHERS FOR PAYMENTS MADE THROUGH THAT PERIOD. IF THE LEASE CONTINUED IN EFFECT AFTER APRIL 30, 1952, AND IF THE RENTAL PAYMENTS WERE MADE AT THE MAXIMUM RATE OF $4,500 PER ANNUM WITHOUT REGARD TO THE FORMULA STIPULATED IN PARAGRAPH 7, THE REPORT SHOULD INCLUDE SIMILAR DATA FOR THE PERIOD BEGINNING MAY 1, 1952, THROUGH THE CURRENT PERIOD OR UNTIL CANCELLATION OF THE LEASE.