A-58137, NOVEMBER 20, 1934, 14 COMP. GEN. 403

A-58137, NOVEMBER 20, 1934, 14 COMP. GEN. 403

CONTRACTS - BIDS BY FEDERAL EMPLOYEES NO BID SHOULD BE CONSIDERED OR CONTRACTS ENTERED INTO WITH AN EMPLOYEE OF THE GOVERNMENT OF THE VIRGIN ISLANDS, OR OF THE UNITED STATES--- WHETHER SUCH EMPLOYMENT BE TEMPORARY OR PERMANENT--- FOR THE DELIVERY OF SUPPLIES AND MATERIALS TO THE UNITED STATES.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE INTERIOR, NOVEMBER 20, 1934:

THERE HAS BEEN RECEIVED IN RESPONSE TO MY REQUEST OF OCTOBER 12, 1934, YOUR REPORT OF NOVEMBER 13, 1934, TRANSMITTING A LETTER OF NOVEMBER 2, 1934, FROM THE GOVERNOR OF THE VIRGIN ISLANDS, CONCERNING A PROTEST OF THE WEST INDIA MACHINERY AND SUPPLY CO., SAN JUAN, P.R., AGAINST THE REJECTION OF ITS BID FOR THE DELIVERY OF CERTAIN TRACTORS FOR USE OF THE GOVERNMENT OF THE VIRGIN ISLANDS AND THE HOMESTEAD PROJECTS THEREIN AND PROTESTING AGAINST THE CONSIDERATION OF ANY BID SUBMITTED BY NORMAN SKEOCH FOR THE DELIVERY OF TRACTORS ON THE GROUND THAT HE WAS AN EMPLOYEE OF THE GOVERNMENT OF THE VIRGIN ISLANDS.

THE REPORT IS TO THE EFFECT THAT ALL THE BIDS RECEIVED FOR THE DELIVERY OF A TRACTOR FOR THE USE OF A HOMESTEAD PROJECT AT ST. THOMAS AND FOR A HOMESTEAD PROJECT AT ST. CROIX HAD BEEN REJECTED BECAUSE OF THE PROTESTS AND BECAUSE THE TIME LIMIT FOR ACCEPTANCE HAD EXPIRED OR WOULD SOON EXPIRE ON MOST OF THEM. ALSO, THAT NEW INVITATIONS FOR BIDS HAD BEEN ISSUED FOR THESE TRACTORS. IN VIEW OF THESE FACTS, THIS OFFICE IS NOT REQUIRED TO TAKE FURTHER ACTION IN THE MATTER OF THE PROTEST SUBMITTED BY THE WEST INDIA MACHINERY AND SUPPLY CO. WITH RESPECT TO THIS FEATURE OF THE MATTER.

HOWEVER, IT SEEMS NECESSARY FOR FUTURE GUIDANCE TO CONSIDER THE PROTEST WITH RESPECT TO THE CONSIDERATION OF BID SUBMITTED BY NORMAN SKEOCH. THE GOVERNOR OF THE VIRGIN ISLANDS HAS REPORTED IN HIS LETTER OF NOVEMBER 2, 1934, THAT MR. SKEOCH WAS EMPLOYED FROM FEBRUARY 26, 1934, TO MAY 2, 1934, AS SUPERVISOR OF FIELD WORK, SUGAR CANE PROJECT, AT $5 A DAY PAYABLE FROM EMERGENCY RELIEF FUNDS; FROM JULY 1 TO OCTOBER 11 AS SUPERVISOR OF FIELD WORK, TOMATO PROJECT; AND FROM OCTOBER 12, 1934, AS SUPERVISOR OF FIELD WORK, TOMATO PROJECT, AT $5 A DAY, CHARGEABLE TO NATIONAL INDUSTRIAL RECOVERY FUNDS; THAT THE DURATION OF THIS EMPLOYMENT WAS TEMPORARY; AND THAT SUCH EMPLOYMENT EXISTED WHEN THE BIDS IN THIS CASE WERE SUBMITTED.

THE ACT OF MARCH 4, 1909, 35 STAT. 1097, PROHIBITED ANY OFFICER OR AGENT OF ANY CORPORATION, JOINT-STOCK COMPANY, OR ASSOCIATION, OR ANY MEMBER OR AGENT OF ANY FIRM OR PERSON DIRECTLY OR INDIRECTLY INTERESTED IN THE PECUNIARY PROFITS OR CONTRACTS FROM BEING EMPLOYED OR ACTING AS AN OFFICER OR AGENT OF THE UNITED STATES FOR THE TRANSACTION OF BUSINESS WITH SUCH CORPORATION, JOINT-STOCK COMPANY, ASSOCIATION, OR FIRM, WITH A PROVISION THAT ANY PERSON WHO SHOULD VIOLATE SAID STATUTE SHALL BE FINED NOT MORE THAN $2,000 AND IMPRISONED NOT MORE THAN 2 YEARS AND SECTION 3 OF THE ACT OF AUGUST 10, 1917, 40 STAT. 276, PROVIDED:

THAT NO PERSON ACTING EITHER AS A VOLUNTARY OR PAID AGENT OR EMPLOYEE OF THE UNITED STATES IN ANY CAPACITY, INCLUDING AN ADVISORY CAPACITY, SHALL SOLICIT, INDUCE, OR ATTEMPT TO INDUCE ANY PERSON OR OFFICER AUTHORIZED TO EXECUTE OR TO DIRECT THE EXECUTION OF CONTRACTS ON BEHALF OF THE UNITED STATES TO MAKE ANY CONTRACT OR GIVE ANY ORDER FOR THE FURNISHING TO THE UNITED STATES OF WORK, LABOR, OR SERVICES, OR OF MATERIALS, SUPPLIES, OR OTHER PROPERTY OF ANY KIND OR CHARACTER, IF SUCH AGENT OR EMPLOYEE HAS ANY PECUNIARY INTEREST IN SUCH CONTRACT OR ORDER, OR IF HE OR ANY FIRM OF WHICH HE IS A MEMBER, OR CORPORATION, JOINT-STOCK COMPANY, OR ASSOCIATION OF WHICH HE IS AN OFFICER OR STOCKHOLDER, OR IN THE PECUNIARY PROFITS OF WHICH HE IS DIRECTLY OR INDIRECTLY INTERESTED, SHALL BE A PARTY THERETO. NOR SHALL ANY AGENT OR EMPLOYEE MAKE, OR PERMIT ANY COMMITTEE OR OTHER BODY OF WHICH HE IS A MEMBER TO MAKE, OR PARTICIPATE IN MAKING, ANY RECOMMENDATION CONCERNING SUCH CONTRACT OR ORDER TO ANY COUNCIL, BOARD, OR COMMISSION OF THE UNITED STATES, OR ANY MEMBER OR SUBORDINATE THEREOF, WITHOUT MAKING TO THE BEST OF HIS KNOWLEDGE AND BELIEF A FULL AND COMPLETE DISCLOSURE IN WRITING TO SUCH COUNCIL, BOARD, COMMISSION, OR SUBORDINATE OF ANY AND EVERY PECUNIARY INTEREST WHICH HE MAY HAVE IN SUCH CONTRACT OR ORDER AND OF HIS INTEREST IN ANY FIRM, CORPORATION, COMPANY, OR ASSOCIATION BEING A PARTY THERETO. NOR SHALL HE PARTICIPATE IN THE AWARDING OF SUCH CONTRACT OR GIVING SUCH ORDER. ANY WILLFUL VIOLATION OF ANY OF THE PROVISIONS OF THIS SECTION SHALL BE PUNISHABLE BY A FINE OF NOT MORE THAN $10,000, OR BY IMPRISONMENT OF NOT MORE THAN 5 YEARS, OR BOTH *

ASIDE FROM THE TERMS OF THE ACTS OF MARCH 4, 1909, AND AUGUST 10, 1917, IT HAS BEEN REPEATEDLY HELD THAT THE UNITED STATES SHOULD NOT, WHERE THE NEEDS OF THE GOVERNMENT REASONABLY CAN BE OTHERWISE SUPPLIED, CONTRACT WITH ITS OFFICERS OR EMPLOYEES FOR THE REASON THAT SUCH CONTRACTS ARE AGAINST PUBLIC POLICY AND WOULD AFFORD GROUNDS FOR COMPLAINT AS TO ALLEGED FAVORITISM, FRAUD, ETC., IN THE CONDUCT OF THE PUBLIC BUSINESS. ACCORDINGLY, YOU ARE ADVISED THAT NO BIDS SHOULD BE CONSIDERED OR CONTRACTS ENTERED INTO WITH ANY EMPLOYEE OF THE GOVERNMENT OF THE VIRGIN ISLANDS OR OF THE UNITED STATES--- WHETHER SUCH EMPLOYEE BE TEMPORARY OR PERMANENT--- FOR THE DELIVERY OF SUPPLIES AND MATERIALS.