B-172451, SEP 22, 1971

B-172451, SEP 22, 1971

CONTRACTS - VEHICLE RENTAL - APPLICABLE RATE DECISION THAT WHILE THE CLAIMS DIVISION HAS BEEN INSTRUCTED TO CERTIFY PAYMENT TO CLAIMANT IN THE AMOUNT OF $720 ARISING OUT OF THE RENTAL OF A TRUCK TO THE BUREAU OF LAND MANAGEMENT, CLAIMANT IS NOT ENTITLED TO ANY ADDITIONAL COMPENSATION ABOVE THE ORIGINAL $420 ALLOWED FOR THE PERIOD JUNE 24 TO JUNE 30, 1969, FOR USE OF THE VEHICLE. ALTHOUGH CLAIMANT HAS ACCEPTED $720 IN FULL AND FINAL SETTLEMENT OF THAT PART OF THE CLAIM COVERING RENTAL DURING THE PERIOD THE TRUCK WAS IN A SHOP FOR REPAIRS, HE NOW QUESTIONS THE ORIGINAL ALLOWANCE OF $420 FOR RENTAL. WHILE THE TIME SHEETS SHOW A RENTAL OF $10 PER HOUR, THE GOVERNMENT RELIED ON CLAIMANT'S OFFER OF $60 PER DAY IN DETERMINING THE PROPER RATE FOR THE SEVEN DAYS THE TRUCK WAS ACTUALLY IN USE. THEREFORE, THE COMP. GEN. IS OF THE OPINION THAT NO ADDITIONAL COMPENSATION IS DUE FOR THIS PERIOD.

TO MR. VIRGIL C. MAYS:

REFERENCE IS MADE TO YOUR LETTER OF JULY 20, 1971, ACKNOWLEDGING RECEIPT OF OUR LETTER OF JULY 9, 1971, IN WHICH WE ADVISED YOU THAT AN ADDITIONAL SUM OF $720 WOULD BE CERTIFIED FOR PAYMENT BY OUR OFFICE ON YOUR CLAIM IF YOU AGREED TO ACCEPT THAT AMOUNT, TOGETHER WITH THE ORIGINAL ALLOWANCE OF $420, IN FULL AND FINAL SETTLEMENT OF ALL CLAIMS ARISING OUT OF THE RENTAL OF YOUR 1960 INTERNATIONAL TRUCK VAN TO THE FAIRBANKS, ALASKA, DISTRICT OFFICE OF THE BUREAU OF LAND MANAGEMENT (BLM), DEPARTMENT OF THE INTERIOR.

YOU STATE THAT YOU ARE WILLING TO ACCEPT THE AMOUNT OF $720 IN FULL AND FINAL SETTLEMENT OF YOUR CLAIM FOR LOST USE TIME DURING THE PERIOD YOUR TRUCK WAS IN THE SHOP FOR REPAIRS. HOWEVER, YOU STATE THAT THE AMOUNT OF $420 WHICH OUR OFFICE PREVIOUSLY ALLOWED YOU FOR SEVEN DAYS TRUCK RENTAL AT THE RATE OF $60 PER DAY FOR THE PERIOD JUNE 24 TO JUNE 30, 1969, INCLUSIVE, IS NOT THE CORRECT AMOUNT FOR THE PERIOD IN QUESTION. YOU ALLEGE THAT ON THE BASIS OF THE FIGURES SHOWN ON THE TIME SHEET EXECUTED BY A REPRESENTATIVE OF THE BUREAU OF LAND MANAGEMENT YOU SHOULD BE PAID $700 INSTEAD OF $420 FOR THE SEVEN-DAY PERIOD. YOU POINT OUT THAT THE TIME SHEET SHOWS THAT YOUR TRUCK WAS USED 10 HOURS PER DAY FOR SEVEN DAYS AND THE RENTAL RATE IS SHOWN THEREON AS $10 PER HOUR OR $100 PER 10-HOUR DAY.

WHILE THE TIME SHEET DOES SHOW A RENTAL RATE OF $10 PER HOUR, WE ARE OF THE OPINION THAT SUCH RATE IS INCORRECT AND THAT THE CORRECT RATE IS $60 PER DAY PURSUANT TO YOUR OFFER OF JUNE 27, 1969. THE RECORD INDICATES THAT IN YOUR FIRST OFFER OF JUNE 20, 1969, YOU QUOTED AN OPERATING RATE, WITH AN OPERATOR, OF $15 PER HOUR, A STANDBY RATE OF $10 PER HOUR WITH AN OPERATOR AND $8 PER HOUR WITHOUT AN OPERATOR; THAT WHEN YOU APPEARED WITH YOUR TRUCK YOU WERE TOLD THAT THE GOVERNMENT NEEDED A TRUCK WITHOUT AN OPERATOR; AND THAT YOU AGREED TO RENT YOUR TRUCK WITHOUT AN OPERATOR. SUBSEQUENTLY, YOU SUBMITTED AN OFFER DATED JUNE 27, 1969, IN WHICH YOU QUOTED AN OPERATING RATE, WITHOUT AN OPERATOR, OF $60 PER DAY. SINCE THE GOVERNMENT USED YOUR TRUCK WITHOUT AN OPERATOR FURNISHED BY YOU AND SINCE YOUR OFFER OF JUNE 20, 1969, DID NOT QUOTE AN OPERATING RATE WITHOUT AN OPERATOR, WE CONCLUDE THAT IT WAS PROPER FOR THE BUREAU OF LAND MANAGEMENT TO USE YOUR OFFER OF JUNE 27, 1969, IN DETERMINING THE RATE TO BE PAID TO YOU FOR THE RENTAL OF YOUR TRUCK. SINCE YOU HAVE BEEN PAID AT THE RENTAL RATE OF $60 PER DAY - THE OPERATING RATE, WITHOUT OPERATOR, SPECIFIED IN YOUR OFFER OF JUNE 27, 1969 - FOR THE PERIOD JUNE 24 TO JUNE 30, 1969, INCLUSIVE, WE ARE OF THE OPINION THAT YOU ARE NOT ENTITLED TO ANY ADDITIONAL COMPENSATION FOR THE RENTAL OF YOUR TRUCK DURING THAT PERIOD.

ACCORDINGLY, IN VIEW OF THE FOREGOING, OUR CLAIMS DIVISION HAS BEEN INSTRUCTED TODAY TO CERTIFY PAYMENT TO YOU IN THE AMOUNT OF $720 IN FULL AND FINAL SETTLEMENT OF ALL CLAIMS ARISING OUT OF THE RENTAL OF YOUR TRUCK TO THE BUREAU OF LAND MANAGEMENT.