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B-177610 1 (1977-12-15)

handle is hein.gao/gaobadflg0001 and id is 1 raw text is: A MATTER OF: Liability of General Services Administration fir Damage to Agency Property DIGEST: General Services Administration (GSA) is not required to reimburse tenant agencies for damage to agency prop- erty caused by building failures or to lower Standard Level User Charges by amount equal to liability insurancc premium paid by commercial landlords. The general rule is that one Federal acgncy is not liable to another for property damages. There is no basis in Federal Property and Adniniscrative Services Act or its legislative his- tory to create an exceptiin to this general rule where GSA serves as landlord. This decision is in response to a request by the Deputy Assistant Secretary of Det'-nse (ldministration) for cur views concerning the liability of the General Services Administration (GSA) for damn2e to the property of Federal agencies which r-n: space in buildings owned or leased by GSA. Specifically, zhe Department of Defenre (DOD) wants to know whether CSA should reimburse agencies for damage to or losses of furniture, furnishin-s, or equipment which result from building failures where a cor'mercial landlord would be liablc either by recover from a lessor, where one is involved, rr through a set- aside for that purpose in the Federal Suildings Fund. As an alter- native to reimbursament for danages, DOD suggests that GSA reduce its Standard Level User Charges to the A-encies by an amount equiv2- lent to the premiums paid by the commercial landlords for liability coveraee so that the agencies could then underwrite their position as self-insurers. The landlord-tenant relationshi berr:een GSA and the various agencies is governed by the Federal Property and Administrative Servires Act of 1949, as amended, 40 U.S.C. 5 471 et se. (1970 and Supp. V, 19'/5). Section 490(j) of titla 40 prcvIdcg in pertinent part: * * * The Administrator is authorized and directed to charge anyone furnished services, -l1 - DECISIO J FILE: B-177610 01% co -4. r M. I JTHE ComPTROLLSt W2sZIRAL ..1OF THE usNirIE AT/ATD / WAS INGTON. D.C. 204U DATE: lYee'-be? 15, 1977 I

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