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 contend...

GSA WAS THEN AUTHORIZED. THE CONTRACT IN QUESTION WAS FOR A STUDY OF "AUTOMATIC EMISSION CONTROL TECHNOLOGY" ON A COST-PLUS-FIXED-FEE BASIS. FALCON CONTENDED THAT THE NEGOTIATED OVERHEAD RATE OF 125 PERCENT UNDER THE CONTRACT WAS IN ERROR AND CLAIMED A 20-PERCENT LABOR COST OVERRUN AND A 10-PERCENT SUBCONTRACT COST OVERRUN. STATING THAT THE 125-PERCENT OVERHEAD RATE WAS FIXED IN THE CONTRACT. THE...