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B-217884 1 (1986-02-18)

handle is hein.gao/gaobadmem0001 and id is 1 raw text is: THE COMPTROLLER GENERAL OECISION . . OP THE UNITED STATED WSHINGTON. 0. C. 20548 FILE: B-217884 DATE: February 18, 1986 MATTER OF: Federal Aviation Administration - Limits on Rent Payments DIGEST: 1. Provision in a lease between the Federal Aviation Administration and the lessor incorporating section 322 of the Economy Act, which limits the amount of rent the Government is authorized to pay and which was suspended on October 1, 1981, is not applicable to rental adjustment period beginning October 1, 1983. 2. Language of a rental adjustment provision in a lease between the lessor and the Fed- eral Aviation Administration allowed but did not require the FAA to deny a rental adjustment because the request for the adjustment was not timely filed. The FAA's denial of the rent adjustment was proper for the 1-year period following the year in which the adjustment was to be made, but not for the entire period before the next adjustment is to be considered. A Federal Aviation Administration (FAA) contracting officer asks us the following questions about a lease between the FAA and Mr. James N. Routh, the lessor, for space for an FAA Airway Facilities Sector and General Avia- tion District Office at Riverside Municipal Airport, River- side, California: (1) Whether the denial of the lessor's request for a rental adjustment, because of the limitation in section 322 of the Economy Act, was proper; (2) whether the FAA contracting officer was bound to deny the request for a rental adjustment because it was not timely filed; and (3) assuming application of the Economy Act and our decision that a rental adjustment should be made, whether the award date of the lease or the date of the rental adjustment would be the appropriate date to use for establishing the fair market value of the property and fair annual rent. For the reasons given below, we find that section 322 of the Economy Act no longer applies to the lease. We also find that while the FAA was legally permitted to refuse a rental adjustment for the rental period beginning October 1, 1983 because the request was not timely filed, it was not

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