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B-202186 1 (1982-03-09)

handle is hein.gao/gaobadkdh0001 and id is 1 raw text is: y pSY THE COMPTROLLER WENURAL. D CISION . OP THE UNIT3O 8TATER Ir FILE :1-202186 DATE: March 9r1982 MATTER OF: Claim of American International fnt-A-Car DIGEBT; Where provision in Federal Supply Schedule (FSS) contract relieves Government of all responsibility for damage to vehicles rented under it, with excep- tion of deductible amount in contractor's normal ccmercial insurance policy, failure by the con- tractor to purchase collision insurance for vehicle rented to Government agency will not result in Government being responsible for total danage to vehicle, as this wuld be in direct contravention of express intention of parties that contractor would bear primary risk of loss, This is in response to a claim subnitted by American International Eent-A-Car (American) in the aMount of $1,046,64 for damages to a rented vehicle, The claim was initially denied by the Nuclear Pegulatory Com- mission (NRC) which then submitted it to this Office for resolution as a doubtful claim, For the reasons that follow, %e agree with the deter- rnination made by the NRC and we deny the claim, The record shows that American entered into Federal Supply Schedule (RSS) contract with the-General Services Administration (GSA) whereby American agreed to provide, over the 'cne year term of the contract, rental vohicles at prescribed rates, Following the execution of this contract, Francis Costello, an employee of the NRC, executed a rental agreerment with Aerican for the rental of a 1979 Camaro autamobile. The car was subsequently damaged when it s)idded on light snow and struck barriers on both sides of the highway, qhe repair estimate was in the amount claimed here. Section 11(a) of American's FSS contract ptovides as follows: 1i. CWUMCTOR RESPCtSIBILIY ANID INDF)NIICAIW AQREE2*2D: a. The contractor assumes full responsibility for any and all loss or dainge to the rented motor vehicle and relieves the United States of tnerica, any of its agencies, or any of its officers, employees or rentees of all responsibility for any and all loss or danage to the contractor's motor vehicle fu.-shed-unde the terms of the contract: provided, however, that the contractor may exclude the'_cT- tt~iiaCnt asgset £FcrfFEinits normat ccinnercihT insurance-policy. - !

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