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B-226231 1 (1987-10-23)

handle is hein.gao/gaobadmwu0001 and id is 1 raw text is: 03R 0 The Comptroller General of the United States Whington, D.C. 20548 Decision Matter of: City of Aberdeen File: B-226231 Date: October 23, 1987 DIGEST Army Corps of Engineers (Corps) erroneously overbilled City ot Aberdeen for 1983 annual payment under water storage contract. When error was discovered, Corps credited overpayment to 1985 charges. Aberdeen's claim for interest on the overpayment may not be allowed in view of long- established prohibition on recovery ot interest from United States except where expressly authorized in relevant statute or contract. DECISION A disbursing ofticer at the Portland District, Corps of Engineers (Corps), Department of the Army, has requested our decision on a claim by the City of Aberdeen, Washington, in the amount ot $113,835, representing interest on an overpayment by the city to the Corps under a contract. As explained below, the claim cannot be allowed since the payment of interest in the circumstances presented is authorized neither by statute nor by the relevant contract. BACKGROUND In 1967, the City of Aberdeen entered into a contract (Contract No. DACW67-68-C-0024) with the United States acting through the Corps of Engineers, for storage of the city's municipal and industrial water supply in the Wynoochie Dam and Reservoir, a federal flood control project. The contract requires the city to make annual payments to the government over a 50-year period for a stated percentage of the government's project construction costs. In addition, the city is required to make annual payments for operation and maintenance costs of the Wynoochie Project. Over the years, the Corps' Seattle District has billed the city for its annual payment. In 1983, the Seattle District erroneously calculated the operation and maintenance payment, and overbilled the city in the amount of $422,043, 04o373

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