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B-167790 1 (1977-12-23)

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THE  COMPTROLLER UENEAL
OPYMWE UNITED STATUIS
WASIINGTON, D.C. 9'J54M



      DATE:   DEC 2 3 f7


MATTER   OF: Reinbursement  a Corps at Engineers for
             Disaste A -mistance Work


DIGEBT:


FederL  iaster  Assistance Adminlatration (FPDAA)
entered ito an agrem At with the Corps of Engineers
under which the Corps agreed to undertake certain
disaster relief projects, the expenss-*tucluding over*
bead-of which FDAA  would relAurse the Corps. How-
ever, at the time FDAWA's regultions proabited from
paying overhead to cooperating agencies. On the other
hand, based cc that agreement, the Corps decided to
use its Civil Revtiving Fund to finance its disaster
relie fuatom !. W-*k performed for other agencies
which is finmcbd frn the Fund must be reimbursed
at rates Andig  carges  for overhead, 3Ui U. S.C,
S 570. in our view, FDAA is required to cnimply with
its agreements wit the Corps and reimburse that
gency  for overhead costs incurred in carrying out
FDAA  requested wcrk.


   The Chief of Engineers, the Army Corps of Engineers (his roer-
ence DAfEN-ECF*Ci. has requested our opinion on whether the Federal
Disaster Aasistnce Adminaisratuion (FDAA). icamerly the Office at
Emergency  Preparedness (OEf). Department of Housing and Urban
Development. is legally respa~ible for payment ot the Army Corps of
Engineers (Corps) general administrative costs (iverhead) under the
circumstances set forth below.

   The costs involved were inctrred at Corps district and operating
divisian offices on reimbursable disaster assistance work orders issued
by FDAA  to Corps diutricta in accordance with Pub. L. No. 91--40
approved DeOamber 31, 1970, 84 iZ~t. 1744. 42 U.S.C. 5 4401 et ae .
( 970), known as the Disaster Relief Act of 1970. The Corps adFD'AA
have, according to the Chief at Engineers, reached at. impasse an pay-
Ient of theme Corps-Incurrod tosts an renderinj! reimbursable disaster
assistance to FDAA.

   The Disaster Relief Act authorized Government agescies, including
the Corps, to assist in disaster relief functions. The Act then provides:


FILE: 3-18770


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