[Decision Concerning Reimbursement of AID-Financed Contractor for Transportation of Personal Effects]

The Agency for International Development (AID) requested a decision on whether it should reimburse an AID-financed contractor for the transportation of his personal effects. GAO noted that: (1) the contractor performed health-related services for Indonesia, which paid him with an AID grant; (2) the contract stipulated that AID would not reimburse him for using foreign air carriers to transport his personal effects if U.S. carriers were available; and (3) although he instructed the freight forwarder to use only U.S. carriers, the firm used foreign carriers for portions of the trip where U.S. carriers were available. GAO held that the Fly America Act: (1) precluded payment of U.S. funds for international air transportation on foreign air carriers when U.S. carriers were available; and (2) had no provision for waiver of its requirements. Accordingly, AID should not reimburse the contractor.