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The Federal Aviation Administration (FAA) asked whether: (1) its denial of a lessor's request for a rental adjustment because of Economy Act limitations was proper; (2) it was required to deny the request because it was untimely filed; and (3) the lease award date or the rental adjustment date would be the appropriate date to use for establishing the fair market value of the property and fair annual rent if a rental adjustment should be made. GAO found that: (1) the lease provision limiting the amount of rent the government is authorized to pay was suspended and no longer applies to the lease; (2) FAA is legally permitted to refuse a rental adjustment if the request is untimely, but it is not bound to do so; and (3) there was no need to make a determination as to the appropriate date for computing the amount of the adjustment because it was no longer under the Economy Act limitation.


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