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B-202518 1 (1982-01-08)

handle is hein.gao/gaobadjzw0001 and id is 1 raw text is: ECISIC N THIS COMPTRDLLEfR O1!NERAL Or THE UNITED EITAT!B WASlHINGTON 0, , ,.2054EI FILE; B-202518 !DATE: January 8, 1982 MATTER OFt Reirbursement of State of New York Under Ol-mpic Support Contract DIGEST: 1 I Contract clause providing for Federal reimbursement of certain disability benefits paid by thc State of New York pursuant to its military law is not legally objectionable, since clause clearly stipulateti (1) that such reimbursement will not exceed appropriation available at time disabling event occurred, and (2) that nothing in contract may be considered as implying that United States will appropriate additional funds sufficient to meet defioiencies, 2. lere valid contract clause provides for Federal reimbursement of state disability payments, such peri- odic payments may be cowuted to a lunp-sum in accord- ance with established discount and actuarial tales. Any portion of cormuted lumip-sum not disbursed must be refunded to Federal Covernment. A Finaince and Accounting Officer of the Department of the Arny has requested an advance decision as to the propriety of payment: of a claim for reimbursement arising from a contract between the Department of Defense and the State of New York, The facts from which this claim arises are as follows. The U.S. Property and Fiscal Officer for New York, acting as agent for the De- partment of Defense through the Department of the Army, National Guard Bureau, entered into a contract with the State of New York which pro- vided that the State's Division of Military and Naval Affairs would furnish certain support functions to the 1980 XIII Winter Olympic Gases at Lake Placid, New York. The contract contained the following provision at paragraph G-9: REIMBURSEMENT FOR CERTAIN BENEFITS: (a) Benefits including, but. not limited to, disability payments, hospitalization, medical payments, pensions and death benefits, which are paid to military personnel who are members of the Organized Militia of the State of New York (not otherwise covered by insur- ance purchased hereunder) by the State of New York pur- suant to the New York State Military Law and regulations arid which arise out of the performance of this contract,

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