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B-178103 1 (1973-06-01)

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CK1lwROLLAER GNERAL OF THE UNITID STATES
          WASKONbTOP4 D.C. on


3-178103


June 1, 1973


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Mr. C. Vernon Jantich
Authorized Certifying Officer
Through the Acting Director, Office of
  Finance and Accounting
Department of Housing snd Urban
  Development

Dear Mr. Janimeh   .


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       Reference Is made to your request of February 26, 1973, for
  an asad e decision relative to th'jr~opriety of payment of.w
  invoice ubmitted by Airvays Rent-A-Car under Contract
  NO.    so8588.

       the contract in question, negotiated by the Oenera. Services
* Administration, provided for the use of 70 automobiles by the
  Departmaent of Housing and Urban Development (HUD),' Detroit, MIchi-I
  gan, for, the period June I, 1972, through approximately Noverboer 30,
  1972. Payment was to be effected by HMW at the prescribed total
  monthly rental rate per car of $282.75. Billing was to be on the
  first day of each month.


           pursuant to the Scope of Contract clause, which provided the
      Government vith an option for cancellation upon delivery of a 30-day
      written notice to the contractor, HUD irdtiated a series of vehicle
      caneflatiLtn  involving 67 of the originsl 70 units. Thus, by let-
      ter dated August 29o, 1972, hU) informed the contractor that eight
      vehicles were available for innediatie pick up, and that it was
      anticlpated that v3.3 vehicles would be returned by the end of Octo-
      ber 972. The record (BUD lottnr of September '11, 1972) indicates
      that 113 vehicles were actually retiued on September 1. By its
      letter of September 11, 1972, MMlD also notified the contractor that
      47 vehicle vauld be returned no later than September 29, 1972, and
      ltat 22 units would be turned in on October 15, 1972. The record
      does not show when this letter was received by Airways. Zn reality,
      it appears that 56 vehicles were returned to the contractor on
      Snrimous days during the period Beptember 1 throush October 13, 15r2
      (45 in September and 11 in October), and 3 vehicles were retained by
. . .   UD until the end of November 1972.


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