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B-262168 1 (1996-05-24)

handle is hein.gao/gaobacxzj0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: John Martino File: B-262168 Date: May 24, 1996 DIGEST The Claims Collection Act and 31 U.S.C. § 3702(a) provide GAO with jurisdiction over claims submitted by employees against whom liability has been assessed by their agencies. Our review is limited to a review of the agency's legal basis for assessing liability (ie, the existence of statutory authority or appropriate regulations), whether the agency has followed the applicable statute and regulations, and whether the agency had a rational basis for assessing liability. Where the Panama Canal Commission found that the employee, a contracting officer, failed to comply with the Federal Acquisition Regulation requirement to conduct a market price study prior to extending a contract, a rational basis exists for assessing liability against him. Employee was provided notice and a hearing pursuant to 31 U.S.C. § 3716 and agency regulations. The Panama Canal Commission acted properly in using administrative offset procedures to set off his debt against his final salary payments and accumulated leave and is entitled to proceed through the Office of Personnel Management to collect the balance remaining against his Civil Service Retirement Fund account. DECISION This decision is in response to a letter from the attorney for John Martino concerning his indebtedness to the Panama Canal Commission (PCC). Mr. Martino is contesting the validity of an $88,040 assessment of indebtedness on his part to the PCC. BACKGROUND The case stems from the 1991 extension authorized by Mr. Martino of the PCC's contract PC-1p-1903 for liquid chlorine. In January of 1994, the PCC Inspector General reported irregularities in the procurement and the PCC subsequently found that Mr. Martino was obligated to pay the agency the sum of $88,040 as reimbursement for the unnecessary expenditure of commission funds for which he was alleged to be responsible. 715523

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