Request for Reconsideration Concerning Payment for Repair Services

An overseas firm requested reconsideration of the Claims Group's denial of a claim submitted on its behalf by its business associate, an international firm, for reimbursement by the Army for repairs to allegedly out-of-warranty training aids. The international firm had a basic ordering agreement with the Army which contemplated performance of the repairs in question; however, the repairs were performed under informal arrangements made by Army employees with representatives of the overseas firm. The Claims Group's initial decision ruled that the evidence of record was insufficient to determine whether the training aids were out- of-warranty at the time the repairs were made. On reconsideration, the international firm submitted an analysis on behalf of its overseas representative, showing the date of repair, the cost, the date of shipment to the Army, and the date that the warranty period ended. GAO concluded that this information did not eliminate doubt regarding the dates of the warranty periods in effect. There was evidence in the record which indicated that the warranty periods may have exceeded the stated time; this evidence supported the position advanced by the Army that no-cost warranty repairs may have been involved. Therefore, GAO could not determine the extent of the Government's liability for the work performed and could not determine whether the prices claimed were fair and reasonable. GAO has held that claims of doubtful validity should be disallowed. Accordingly, the claim was denied.