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B-194799 1 (1980-01-14)

handle is hein.gao/gaobadhwr0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, D.C. 20548 UIT V, FILE: B-194799 DATE: January 14, 1980 MATTER OF: Department of Transporta ion, Federal Highway Administration- request for opinion DIGEST: No basis is seen to conclude that one Government agency is liable to second agency for cost of latter's disputes clause claim settlement with contractor, even where first agency's error was basis for settle- ment, since record does not disclose any agreement or mutual understanding between agencies covering situation. The Department of Transportation, Federal Highway Administration (FHWA), requests our opinion on the 3 propriety of the Department of Agriculture, United 'States Forest Service (Forest Service), reimbursing FHWA for costs ($53,925.49) incurred by FHWA in set- tling the highway construction claim of the Ered..H, Gof lte 1IgECompany (Slate). Since a Forest Service error generated the Slate claim, FHWA believes the Forest Service should bear the cost of the settlement. On the other hand, the Forest Service takes the position that FHWA improperly settled the claim and that it should not have to reimburse FHWA for the erroneous settlement. We are presented with.two issues: (1) whether the Forest Service should reimburse FHWA; and (2) whether FHWA properly settled Slate's claim. Regarding the first issue, we see no basis on this record for con- cluding that the Forest Service is required to reimburse FHWA. This renders moot the second issue. FHWA's request involved the FHWA/Forest Service practice of cooperating in the construction of forest highways. 23 U.S.C. S 204 (1976). Under this practice, (1//0 /I/ /

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