A-87920, SEPTEMBER 27, 1937, 17 COMP. GEN. 285

A-87920, SEPTEMBER 27, 1937, 17 COMP. GEN. 285

VEHICLES - MOTOR - PASSENGER-CARRYING - REPAIR LIMITATIONS - "MARKET PRICE," LABOR COSTS, STOCK PARTS, DATA NECESSARY ON VOUCHERS COVERING REPAIRS IN CONNECTION WITH THE LIMITATION ON THE AMOUNT WHICH MAY BE EXPENDED IN ONE FISCAL YEAR FOR REPAIR OF ANY MOTOR-PROPELLED PASSENGER CARRYING VEHICLE, AS CONTAINED IN SECTION 3 OF THE ACT OF MAY 14, 1937, 50 STAT. 163, THE "MARKET PRICE" IS THE PRICE AT WHICH VEHICLES ARE COMMONLY SOLD TO THE PUBLIC BY REGULAR DEALERS AT OR NEAR THE POINT OF USE; THAT IS, THE RETAIL PRICE, AND THE COST OF LABOR NECESSARY TO MAKE REPAIRS IS TO BE CONSIDERED AS A PART OF THE COST OF THE REPAIRS IRRESPECTIVE OF WHETHER THE WORK IS PERFORMED IN A GOVERNMENT GARAGE OR A PRIVATELY OWNED GARAGE. PURCHASES OF SMALL QUANTITIES OF REPAIR PARTS FOR MOTOR-PROPELLED PASSENGER-CARRYING VEHICLES TO BE HELD IN STOCK FOR FUTURE USE ARE AUTHORIZED, AND THE COST OF SUCH PARTS, IRRESPECTIVE OF WHEN PURCHASED FOR STOCK, IS TO BE REGARDED AS A PART OF THE COST OF REPAIRS FOR THE YEAR IN WHICH USED, IN DETERMINING WHETHER ANY PROPOSED REPAIR OF THE PARTICULAR VEHICLE ON WHICH USED WILL CONTRAVENE THE STATUTORY LIMITATION ON PAYMENTS FOR REPAIRS. WHERE REPAIR PARTS FOR MOTOR-PROPELLED PASSENGER-CARRYING VEHICLES ARE CARRIED IN STOCK AND REPAIRS ARE MADE IN A GOVERNMENT GARAGE BY THE USE OF THE PARTS IN STOCK, IT IS AN ADMINISTRATIVE RESPONSIBILITY TO DETERMINE THAT THE STATUTORY LIMITATION ON PAYMENTS FOR REPAIRS IS NOT EXCEEDED, AS NO VOUCHERS WILL BE SUBMITTED TO THE GENERAL ACCOUNTING OFFICE FOR AUDIT IN SUCH CASES. WHERE MOTOR-PROPELLED PASSENGER-CARRYING VEHICLE PARTS ARE PURCHASED FOR REPAIRS TO A SPECIFIC VEHICLE, THE VOUCHER COVERING THE PURCHASE SHOULD CONTAIN A SHOWING OF THE AGGREGATE AMOUNT PREVIOUSLY EXPENDED FOR REPAIRS ON THAT VEHICLE DURING THE CURRENT FISCAL YEAR WITH REFERENCES TO ALL PREVIOUS VOUCHERS AND OTHER DATA NECESSARY TO IDENTIFY THE PRIOR EXPENDITURES, RATHER THAN A MERE STATEMENT THAT EXPENDITURES, INCLUDING THE ONE IN QUESTION, WILL NOT EXCEED THE STATUTORY LIMITATION ON PAYMENTS FOR REPAIRS.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF AGRICULTURE, SEPTEMBER 27, 1937:

YOUR LETTER OF SEPTEMBER 10, 1937, IS AS FOLLOWS:

YOUR DECISION NO. A-87920, ADDRESSED TO THE OFFICIALS OF DEPARTMENTS AND INDEPENDENT ESTABLISHMENTS AND OTHERS CONCERNED, UNDER DATE OF JULY 29, 1937, HAS BEEN RECEIVED AND THE CONTENTS CAREFULLY CONSIDERED. THE DECISION READS:

"IN THE AUDIT OF VOUCHERS SUBMITTED TO THIS OFFICE COVERING REPAIRS TO GOVERNMENT AUTOMOBILES, IT HAS BEEN NOTED THAT GENERALLY NO STATEMENT IS MADE THEREON WITH REFERENCE TO THE MAKE, MODEL, OR TOTAL COST OF REPAIRS, AS APPLIED TO THE PARTICULAR VEHICLE COVERED BY THE VOUCHER.

"SECTION 3 OF THE ACT APPROVED MAY 14, 1937, 50 STAT. 163, PROVIDES:

" "NO APPROPRIATION AVAILABLE FOR THE EXECUTIVE DEPARTMENTS AND INDEPENDENT ESTABLISHMENTS OF THE GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 1938, WHETHER CONTAINED IN THIS ACT OR ANY OTHER ACT, SHALL BE EXPENDED---

" "/C) FOR THE MAINTENANCE, UPKEEP, AND REPAIR (EXCLUSIVE OF GARAGE RENT, PAY OF OPERATORS, TIRES, FUEL, AND LUBRICANTS) ON ANY ONE MOTOR-PROPELLED PASSENGER-CARRYING VEHICLE, EXCEPT BUSSES AND AMBULANCES, IN EXCESS OF ONE -THIRD OF THE MARKET PRICE OF A NEW VEHICLE OF THE SAME MAKE AND CLASS, AND IN NO CASE IN EXCESS OF $400.'

"TO GIVE EFFECT TO THESE PROVISIONS OF LAW IN THE AUDIT BY THE GENERAL ACCOUNTING OFFICE OF ACCOUNTS COVERING THE EXPENDITURE IN QUESTION, IT IS HEREBY MADE A REQUIREMENT THAT ON ALL VOUCHERS FOR REPAIRS TO PASSENGER CARRYING VEHICLES FOR PERIODS BEGINNING ON AND AFTER JULY 1, 1937, THERE SHALL APPEAR A STATEMENT WITH RESPECT TO EACH VEHICLE AS TO THE MAKE, MODEL, AND TOTAL COST OF REPAIRS MADE DURING THE CURRENT FISCAL YEAR.'

IN PUTTING INTO EFFECT AND EFFICIENTLY CARRYING OUT THE REQUIREMENTS CONTAINED IN THIS DECISION, THE DEPARTMENT DESIRES TO HAVE YOUR COMMENTS AND CLARIFICATION ON THE FOLLOWING QUESTIONS:

1. HOW SHOULD WE DETERMINE OR ESTABLISH THE "MARKET PRICE" OF THE PASSENGER-CARRYING MOTOR-DRIVEN VEHICLE? SHOULD WE USE THE ACTUAL NET COST PAID BY THE GOVERNMENT AT THE TIME THE VEHICLE WAS PURCHASED, SHOULD WE USE THE RETAIL PRICE AT POINT OF USE OF A SIMILAR VEHICLE AT THE TIME THE REPAIRS ARE MADE, OR SHOULD WE USE THE CURRENT BIDDER'S SHIPPING POINT PRICE?

2. SHOULD THE COST OF LABOR NECESSARY TO COMPLETE REPAIRS ON PASSENGER- CARRYING VEHICLES BE CONSIDERED AS PART OF THE TOTAL COST OF THE REPAIRS TO THE VEHICLE AS WELL AS THE PARTS REPLACED, WHEN---

(A) REPAIR WORK IS PERFORMED IN A GOVERNMENT GARAGE; AND

(B) REPAIR WORK ON A GOVERNMENT VEHICLE IS PERFORMED IN A PRIVATELY OWNED GARAGE?

3. IS IT PERMISSIBLE TO PURCHASE REPAIR PARTS FOR PASSENGER CARRYING VEHICLES IN SMALL QUANTITIES AND STORE THE PARTS IN A WAREHOUSE FOR FUTURE USE TO PREVENT UNNECESSARY DELAY INCIDENT TO INSTIGATING AND EFFECTING THE PURCHASE OF THE NECESSARY PARTS AFTER THE BREAKDOWN OF THE VEHICLE ACTUALLY OCCURS, WITHOUT STATING DEFINITELY ON THE VOUCHER THE VEHICLE FOR WHICH THE PARTS ARE BEING PURCHASED?

4. IF THE ANSWER TO QUESTION NO. 3 IS IN THE AFFIRMATIVE, SHOULD THE COST OF REPAIR PARTS PURCHASED WITH FUNDS AVAILABLE UNDER APPROPRIATIONS COVERING THE FISCAL YEAR ENDING JUNE 30, 1937, AND USED IN THE REPAIR OF VEHICLES AFTER JULY 1, 1937, BE LISTED AS COST OF REPAIRS TO VEHICLES DURING THE FISCAL YEAR BEGINNING JULY 1, 1937, AND ENDING JUNE 30, 1938?

5. WHEN REPAIR PARTS FOR PASSENGER-CARRYING VEHICLES ARE CARRIED IN STOCK AND REPAIRS ARE MADE IN A GOVERNMENT GARAGE USING SAID PARTS WHICH WERE STOCKED, NO VOUCHER IS PREPARED IN THE TRANSACTION. IN SUCH CIRCUMSTANCES, WHEN NO VOUCHER TRANSACTION IS INVOLVED, WHAT IS THE EFFECT OF THE DECISION?

6. IN INSTANCES WHERE PURCHASES ARE MADE FOR A PRE-DETERMINED NEED (E.G., REPLACEMENT BLOCK FOR ONE WHICH IS CRACKED OR OTHERWISE DAMAGED BEYOND REPAIR), MUST THE VOUCHER COVERING SUCH PURCHASE SHOW THE EXACT AMOUNT PREVIOUSLY EXPENDED DURING THE CURRENT FISCAL YEAR WITH REFERENCE TO ALL PREVIOUS VOUCHERS, AMOUNTS, DATES, ETC., OR MAY THE VOUCHER CONTAIN A GENERAL STATEMENT TO THE EFFECT THAT EXPENDITURES, INCLUDING THE ONE IN QUESTION, WILL NOT EXCEED ONE-THIRD OF THE MARKET PRICE OF THE VEHICLE, AND IN NO CASE IN EXCESS OF $400?

IT SHOULD BE EMPHASIZED THAT THE ALLOCATION OF REPAIR PARTS TO PASSENGER- CARRYING VEHICLES IS EXCEEDINGLY DIFFICULT, IF THE PURCHASES OF SAID PARTS ARE MADE PRIOR TO THE BREAKDOWN OF THE VEHICLE. IT IS TO THE ADVANTAGE OF THE GOVERNMENT TO HAVE AVAILABLE AT ALL TIMES SOME REPAIR PARTS FOR VEHICLES IN ORDER TO PREVENT CONSIDERABLE DELAY WHICH SOMETIMES RESULTS IN A LOSS TO THE GOVERNMENT FAR GREATER THAN THE COST OF THE REPAIRS.

AS AN EXAMPLE OF AUTHORITY IN SUPPORT OF STOCKING NECESSARY AND CONSTANTLY NEEDED REPAIR PARTS, I QUOTE FROM THE APPROPRIATION ACT OF ONE OF THE BUREAUS OF THIS DEPARTMENT, PUB. NO. 173, 75TH CONGRESS, APPROVED JUNE 29, 1937:

"PROVIDED FURTHER, THAT DURING THE FISCAL YEAR 1938 THE APPROPRIATIONS FOR THE WORK OF THE SOIL CONSERVATION SERVICE SHALL BE AVAILABLE FOR MEETING THE EXPENSES OF WAREHOUSE MAINTENANCE AND THE PROCUREMENT, CARE, AND HANDLING OF SUPPLIES, MATERIALS, AND EQUIPMENT STORED THEREIN FOR DISTRIBUTION TO PROJECTS UNDER THE SUPERVISION AND THE SOIL CONSERVATION SERVICE AND FOR SALE AND DISTRIBUTION TO OTHER GOVERNMENT ACTIVITIES, THE COST OF SUCH SUPPLIES AND MATERIALS OR THE VALUE OF SUCH EQUIPMENT (INCLUDING THE COST OF TRANSPORTATION AND HANDLING) TO BE REIMBURSED TO APPROPRIATIONS CURRENT AT THE TIME ADDITIONAL SUPPLIES, MATERIALS, OR EQUIPMENT ARE PROCURED FROM THE APPROPRIATIONS CHARGEABLE WITH THE COST OR VALUE OF SUCH SUPPLIES, MATERIALS, OR EQUIPMENT * * *.'

IT IS REQUESTED THAT THE DEPARTMENT BE ADVISED AT YOUR EARLIEST CONVENIENCE IN ORDER THAT ALL BRANCHES OF THE DEPARTMENT OF AGRICULTURE MAY EFFICIENTLY AND SATISFACTORILY COMPLY WITH THE PROVISIONS OUTLINED IN YOUR DECISION.

THE QUESTIONS ASKED WILL BE ANSWERED IN THE ORDER PRESENTED.

1. THE MARKET PRICE TO BE CONSIDERED IS THE PRICE AT WHICH THE VEHICLES ARE COMMONLY SOLD TO THE PUBLIC BY REGULAR DEALERS AT OR NEAR THE POINT OF USE; IN OTHER WORDS, THE RETAIL PRICE. A-20369, NOVEMBER 4, 1927.

2. THE COST OF LABOR NECESSARY TO MAKE THE REPAIRS IS TO BE CONSIDERED A PART OF THE COST OF THE REPAIRS, IRRESPECTIVE OF WHETHER THE WORK IS PERFORMED IN A GOVERNMENT GARAGE OR A PRIVATELY OWNED GARAGE.

3. THE QUESTION IS ANSWERED IN THE AFFIRMATIVE.

4. THE COST OF REPAIR PARTS, IRRESPECTIVE OF WHEN PURCHASED FOR STOCK, IS TO BE REGARDED AS A PART OF THE COST OF REPAIRS FOR THE YEAR IN WHICH USED, IN DETERMINING WHETHER ANY PROPOSED REPAIR OF THE PARTICULAR VEHICLE ON WHICH USED WILL CONTRAVENE THE STATUTE.

5. AS NO VOUCHERS WILL BE SUBMITTED TO THIS OFFICE FOR AUDIT, IT WILL BE AN ADMINISTRATIVE RESPONSIBILITY TO SEE THAT THE LIMITATIONS OF THE STATUTE ARE NOT EXCEEDED.

6. THE VOUCHER SHOULD SHOW THE AGGREGATE AMOUNT PREVIOUSLY EXPENDED FOR REPAIRS ON THAT VEHICLE DURING THE CURRENT FISCAL YEAR WITH REFERENCES TO ALL PREVIOUS VOUCHERS AND OTHER DATA NECESSARY TO IDENTIFY THE PRIOR EXPENDITURES.