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B-193908 1 (1979-03-14)

handle is hein.gao/gaobadgzu0001 and id is 1 raw text is: 



                             THE  COMPTROLLER G.ENERAL
DECISION                     OF   THE UNITED STATES
                             vASHINGTON, 0          C.  20549




FILE:   B-193908                    DATE:     'arch 14, 1979

MATTER OF:      G & J Trucking, Inc.        0   3


DIGEST:

      Since GAO is without authority to_.settle claims against
      the Postal Service, contractor's/claim for price increase
      under Postal Service contra  is dismissed.

      G & J Trucking, Inc. G&J), requested the Postal Service
 to modify a lease agreement that would increase the rental on
 an office building. The request was made on the grounds that
 inflation and the decreasing value of the dollar make the
 stipulated monthly rental of $62.50 inadequate for the payment
 of taxes and insurance premiums, and for maintenance of the
 building. Further, G&J alleges that the rent received by lessors
 of other similar post office buildings exceeds the rent received
 by it by 600 percent. The Postal Service rejected the proposed
 increase and G&J requests re    by the Comptroller General.

      The Postal Service, in its letter to G&J, states that the
 Comptroller General has ruled that no officer or employee of
 the Government can waive, modify or otherwise change the
 contractual obligations of either party without a compensatory
 benefit in return. This is a well-established rule which the
 Comptroller General consistently has applied in cases where the
 agency involved was subject to our claims settlement authority.
 See 40 Comp. Gen. 309, 311 (1960) and B-189121, November 30,
 1977.  However, the inference drawn from the Postal Service's
 statement that the Comptroller General can consider the merits
 of G&J's allegations is erroneous.

      Our Office will not render a decision on this matter since
 the Postal Service is not subject to our claims settlement
 authority. Rather, 39 U.S.C. § 401(8) (1976), vests the Postal
 Service with authority to settle its own claims. Masonic
 Building Association, B-172531, February 24, 1976, 76-1 CPD 125;
 53 Comp. Gen. 607 (1974). G&J's remedy, if any, is with the
 Postal Service or in the courts.




                                  Hilton J. Socolar
                                  General Counsel

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