Payment for Unused Hotel Reservations

The Small Business Administration (SBA) requested an advance decision as to whether a claim for an unused hotel room reservation may be certified for payment. GAO held that the government was not obligated to pay for the unused hotel reservation, since: (1) SBA made the reservation on the behalf of an individual traveler; (2) there was no valid contractual agreement between the government and the hotel; and (3) per diem would have accrued to the employee had he entered into travel status. Accordingly, the claim was denied.