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B-220210 1 (1986-09-08)

handle is hein.gao/gaobadmlo0001 and id is 1 raw text is: DECISION THE COMPTROLLER GENERAL OF THE UNITEO STATED WASHINGTON. 0.C. 20548 FILE: B-220210 DATE: September 8, 1986 Army Corps of Engineers--Disposition of Funds MATTER OF: Collected in Settlement of Faulty Design Dispute Faulty design by an architect-engineer (A-E) caused the Air Force to incur additional correc- tive expenses in the ensuing construction con- tract. The corrective expenses--added costs paid to construction contractor plus added amounts paid to Army Corps of Engineers for supervision and administration (S&A)--were charged to Air Force's 1982 5-year Military Construction appropriation. In 1985, Government recovered the amount of the additional costs from the A-E. Since the appro- priation charged was still available for obliga- tion at the time of the recovery, it may be 0 reimbursed from the recovery to the extent of the additional costs actually incurred. However, por- tion of recovery representing S&A expenses in excess of amount actually charged Air Force must be deposited as miscellaneous receipts. The disbursing officer for the United States Army Corps of Engineers, Norfolk District, has collected $46,324 from an architect-engineer (A-E) who provided a faulty design for con- struction work. The disbursing officer requested our decision on whether the collected funds may be used to reimburse the appropriation used to pay the construction contractor for the extra expenses it incurred to correct the A-E's faulty design, and the revolving fund available for the Corps' supervision and administration (S&A) expenses, or whether the funds must be deposited into the Treasury as miscellaneous receipts pur- suant to 31 U.S.C. § 3302. As explained below, since the agency has already paid the additional construction expenses plus a 5-1/2 percent flat rate representing additional S&A expenses, these sums collected from the A-E may be credited to the agency's appropriation. The balance of the S&A collection must be deposited into the general fund of the Treasury as a miscellaneous receipt. FACTS The Air Force awarded an architect-engineering contract to O'Dell Associates to design a Consolidated Support Center and Softball Complex at Langley Air Base, Virginia. When the design was completed, O'Dell was paid from the Air Force's DIGEST: 66

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