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B-194353 1 (1979-06-14)

handle is hein.gao/gaobadhht0001 and id is 1 raw text is: 


                       TH    COMPTROLLER GENERAL
DE  CISIOl .           .10 OF THE  UNITED STATES
                         WASHINGTON, D.C. 20548




FILE:       B-194353           ATE:  June 14, 1979

MATTER  OF:     Department of the Navy--
                Request for Advance Decision
DIGEST:

1.   Where lease agreement bases yearly rental
     adjustments on fluctuation of cost of living
     index, and past performance of parties to
     the agreement exhibits an intent to be bound
     by an index which is made up of all segments
     of the economy, even though a more specific
     and relevant housing index existed, GAO has
     no legal objection to the application of the
     overall index.  However, GAO recommends
     modification of lease agreement to base future
     rental extensions and adjustments on the more
     appropriate index relating specifically to
     rental housing.

2.   Advance payments by the Department of the
     Navy for rent in foreign country is not
     illegal if such payments are necessary to
     accord with local custom, as provided by law.


     The Department of the Navy requests our advance
decision as to the correctness of rental payments made
by the U. S. Naval Support Activity, Naples, Italy. /?2)Li 74&/a$
Specifically, we have been asked to Interpre flease
agreement language which controls the amount of increase
or decrease in yearly rental adjustments. The Navy
has further requested our determination regarding the
propriety of making advance payments under the provi-
sions of this lease.

     On May 15, 1975, the Navy, on behalf of the United
States of America, entered into a yearly renewable lease
agreement with the Societa' N. C. Coppola Pinetamare   -
of Naples, Italy, to provide 101 apartments and parking
spaces .fo U.  . Government personnel in Italy. This
lease#           at, upon yearly renewal, the rental

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