B-188836, JUNE 6, 1977
Highlights
IS NOT FOR SETTLEMENT BY GAO AND IS DISMISSED SINCE SECRETARY OF HUD IS AUTHORIZED UNDER 12 U.S.C. 1702 TO MAKE SUCH EXPENDITURES AS ARE NECESSARY TO CARRY OUT PROVISIONS THEREOF WITHOUT REGARD TO ANY OTHER PROVISIONS OF LAW GOVERNING THE EXPENDITURES OF PUBLIC FUNDS. UPON CONSIDERATION OF THE EXTENT OF THE JURISDICTION WHICH CONGRESS HAS PLACED IN THE FEDERAL HOUSING ADMINISTRATION WE HAVE CONCLUDED THAT NO USEFUL PURPOSE WOULD BE SERVED BY A DECISION OF THIS OFFICE. WE HAVE BEEN ADVISED BY HUD THAT THE PROPERTIES TO BE REPAIRED WERE HELD UNDER MORTGAGES WHICH HAD BEEN INSURED BY THE SECRETARY OF HUD PURSUANT TO VARIOUS SECTIONS IN 12 U.S.C. THE SECRETARY IS AUTHORIZED TO DISPOSE OF SUCH PROPERTIES AS WELL AS REPAIR AND RENOVATE THEM.
B-188836, JUNE 6, 1977
PROTEST INVOLVING REPAIR CONTRACTS EFFECTED UNDER 12 U.S.C., CHAPTER 13, IS NOT FOR SETTLEMENT BY GAO AND IS DISMISSED SINCE SECRETARY OF HUD IS AUTHORIZED UNDER 12 U.S.C. 1702 TO MAKE SUCH EXPENDITURES AS ARE NECESSARY TO CARRY OUT PROVISIONS THEREOF WITHOUT REGARD TO ANY OTHER PROVISIONS OF LAW GOVERNING THE EXPENDITURES OF PUBLIC FUNDS.
CENTER CITY COMMITTEE OF THE PHILADELPHIA BUILDING TRADES COUNCIL:
THE CENTER CITY COMMITTEE OF THE PHILADELPHIA BUILDING TRADES COUNCIL (CCC) PROTESTS THE AWARD OF A CONTRACT TO THE ALBANY REMODELING COMPANY UNDER INVITATION FOR BIDS (IFB) NO. 26-77-034, ISSUED BY THE PROPERTY DISPOSITION BRANCH, PHILADELPHIA AREA OFFICE, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) FOR THE REPAIR OF 50 SINGLE-FAMILY PROPERTIES. CCC ARGUES THAT THE CONTRACTOR "COULD NOT POSSIBLY PERFORM THE WORK USING PREVAILING WAGE RATES OR USING HUD'S REQUIRED CATALOGUE OF SPECIFICATIONS" AT THE CONTRACT PRICE.
THIS OFFICE CONSIDERS BID PROTESTS PURSUANT TO THE AUTHORITY IN 31 U.S.C. 71, 74 (1970) TO ADJUST AND SETTLE ACCOUNTS AND TO CERTIFY BALANCES IN THE ACCOUNTS OF ACCOUNTABLE OFFICERS. HOWEVER, UPON CONSIDERATION OF THE EXTENT OF THE JURISDICTION WHICH CONGRESS HAS PLACED IN THE FEDERAL HOUSING ADMINISTRATION WE HAVE CONCLUDED THAT NO USEFUL PURPOSE WOULD BE SERVED BY A DECISION OF THIS OFFICE.
WE HAVE BEEN ADVISED BY HUD THAT THE PROPERTIES TO BE REPAIRED WERE HELD UNDER MORTGAGES WHICH HAD BEEN INSURED BY THE SECRETARY OF HUD PURSUANT TO VARIOUS SECTIONS IN 12 U.S.C., CHAPTER 13. UPON DEFAULT BY THE MORTGAGORS, THE SECRETARY PAID INSURANCE BENEFITS TO THE MORTGAGEES AND ACQUIRED THE VARIOUS PROPERTIES. UNDER CHAPTER 13, THE SECRETARY IS AUTHORIZED TO DISPOSE OF SUCH PROPERTIES AS WELL AS REPAIR AND RENOVATE THEM. (SEE 12 U.S.C. 1710(G)). IN MONARCH WRECKING, INC. AND DETROIT DEMOLITION CONTRACTORS ASSOCIATION, B-184866, APRIL 1, 1976, 76-1 CPD 214, WE CONCLUDED THAT THIS OFFICE IS WITHOUT AUTHORITY TO SETTLE MATTERS OF THIS NATURE PRIMARILY BECAUSE OF THE POWER VESTED IN THE SECRETARY OF HUD BY 12 U.S.C. 1702 (1970) TO MAKE EXPENDITURES AS ARE NECESSARY TO CARRY OUT HIS DUTIES UNDER CHAPTER 13 WITHOUT REGARD TO ANY OTHER PROVISIONS OF LAW GOVERNING THE EXPENDITURES OF PUBLIC FUNDS.
REGARDING CCC'S CONTENTION THAT CONTRACTORS UNDER HUD CONTRACTS ARE NOT PERFORMING THEIR CONTRACTS IN ACCORDANCE WITH THE REQUIRED SPECIFICATION, SINCE THIS IS A MATTER OF CONTRACT ADMINISTRATION AND NOT FOR CONSIDERATION BY OUR OFFICE, WE ARE BY LETTER OF TODAY REFERRING THIS MATTER TO HUD FOR WHATEVER CONSIDERATION IT DEEMS APPROPRIATE.
ACCORDINGLY, THE PROTEST IS DISMISSED.