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B-260063 1 (1995-06-30)

handle is hein.gao/gaocrptabzy0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Federal Aviation Administration Negotiations with Pacific Gas and Electric Company to Provide Electric Utility Service to a Remote Air Route Surveillance Radar Facility File: B-260063 Date: June 30, 1995 DIGEST 1. The Federal Aviation Administration violated 31 U.S.C. § 3324 by making an advance payment to Pacific Gas and Electric Company for connecting electrical utility service to a remote FAA facility. FAA failed to obtain adequate security for making advance payments as required by 41 U.S.C. § 255 or to follow the other requirements of the Federal Acquisition Regulations regarding advance payments. 2. The Federal Aviation Administration may pay a connection charge to Pacific Gas and Electric Company to connect electrical utility service to a remote FAA facility that includes an itemization of the increased federal and state income taxes that PG&E will incur incident to the transaction. The enumerated amounts would reimburse PG&E for taxes imposed upon the utility and would not constitute impermissible taxes on the federal government. 3. The Federal Aviation Administration should not accept as part of its agreement with Pacific Gas and Electric Company to connect electrical utility service to a remote FAA facility a clause offering PG&E an open-ended, unrestricted indemnity from FAA. The indemnity clause, through events that FAA cannot control, could produce a liability in excess of FAA's available appropriations in violation of the Antideficiency Act, 31 U.S.C. §§ 1341 and 1517. DECISION The Assistant Chief Counsel, Western-Pacific Region, Federal Aviation Administration (FAA), has requested a decision on several issues raised during negotiations between the FAA and Pacific Gas & Electric Company (PG&E). FAA and PG&E are negotiating the amount that PG&E will be paid to connect electrical power to FAA's Rainbow Ridge Air Route Surveillance Radar site in a remote location near Eureka, California. 304623

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