B-204886, OCT 21, 1981

B-204886, OCT 21, 1981

DIGEST: GAO LACKS JURISDICTION TO REVIEW THE AWARD OF A CONTRACT UNDER A GRANT BY THE LEGAL SERVICES CORPORATION, SINCE THE CORPORATION IS NOT AN AGENCY OR ESTABLISHMENT OF THE GOVERNMENT SUBJECT TO GAO'S ACCOUNTS SETTLEMENT AUTHORITY.

TANN, BROWN & COMPANY, LTD.:

TANN, BROWN & COMPANY, LTD. (TANN) OBJECTS TO THE AWARD OF A CONTRACT BY THE EAST MISSISSIPPI LEGAL SERVICES CORPORATION (EMLS) TO AUDIT EMLS'S FISCAL YEAR 1981 ACCOUNTS. EMLS RECEIVES SUBSTANTIAL GRANT FUNDS FROM THE LEGAL SERVICES CORPORATION PURSUANT TO THE LEGAL SERVICES CORPORATION ACT OF 1974, 42 U.S.C. SECS. 2996-2996L (1976). THE AUDIT APPARENTLY IS NEEDED TO SATISFY THE ANNUAL FINANCIAL AUDIT REQUIREMENT OF 42 U.S.C. SEC. 2996HC)(1). TANN CONTENDS THAT IT SUBMITTED THE BEST PROPOSAL UNDER EMLS'S SOLICITATION FOR THE AUDIT SERVICES.

WE WILL NOT CONSIDER THE MATTER.

OUR OFFICE'S REVIEW OF COMPLAINTS BY PROSPECTIVE CONTRACTORS AGAINST CONTRACT AWARDS BY GRANTEES IS BASED ON OUR STATUTORY OBLIGATION AND AUTHORITY UNDER 31 U.S.C. SEC. 53 TO INVESTIGATE THE RECEIPT, DISBURSEMENT, AND APPLICATION OF FEDERAL FUNDS. SEE THE MONTANA ENERGY AND MHD RESEARCH AND DEVELOPMENT INSTITUTE, INC., B-199604, AUGUST 12, 1980, 80-2 CPD 110. A NECESSARY REQUIREMENT TO OUR REVIEW IS THAT THE GRANTOR BE A FEDERAL AGENCY WHOSE ACCOUNTS ARE SUBJECT TO SETTLEMENT BY OUR OFFICE UNDER 31 U.S.C. SECS. 71 AND 74.

THE STATUTE CREATING THE LEGAL SERVICES CORPORATION PROVIDES, HOWEVER, THAT "EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED ***, THE CORPORATION SHALL NOT BE CONSIDERED A DEPARTMENT, AGENCY OR INSTRUMENTALITY OF THE FEDERAL GOVERNMENT." 42 U.S.C. SEC. 2996DE)(1). THUS, THE LEGAL SERVICES CORPORATION IS NOT SUBJECT TO OUR ACCOUNTS SETTLEMENT AUTHORITY. SEE B-202116, MAY 1, 1981, 60 COMP.GEN. . ACCORDINGLY, IT WOULD SERVE NO USEFUL PURPOSE FOR OUR OFFICE TO REVIEW COMPLAINTS AGAINST THE AWARDS OF CONTRACTS UNDER GRANTS BY THE LEGAL SERVICES CORPORATION.

THE MATTER IS DISMISSED.