A-43468, JULY 26, 1932, 12 COMP. GEN. 122

A-43468: Jul 26, 1932

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APPROPRIATIONS TO WHICH THESE AND SIMILAR LAWS ARE APPLICABLE MAY NOT BE CHARGED WITH THE COST OF FOREIGN ARTICLES UNLESS THE INTERESTS OF THE UNITED STATES WILL NOT PERMIT THE PURCHASE OF ARTICLES OF THE GROWTH. OR MANUFACTURE OF THE UNITED STATES AND THE COST OF SUCH DOMESTIC ARTICLES IS NOT UNREASONABLE. MUST COMPLY WITH THE LAWS APPLICABLE TO THE APPROPRIATIONS FOR SUCH FISCAL YEARS AND NO DELIVERIES MAY BE ACCEPTED AND PAID FOR FROM APPROPRIATED FUNDS WHICH ARE NOT IN ACCORDANCE WITH THE LAW OF THE APPROPRIATIONS TO BE CHARGED. AS FOLLOWS: YOUR DECISION IS REQUESTED AS TO THE APPLICATION OF SECTION 5 OF THE ACT OF JULY 5. SIMILAR PROVISIONS ARE CARRIED IN OTHER APPROPRIATION ACTS. AMONG THESE ITEMS ARE SOME ARTICLES OF FOREIGN ORIGIN.

A-43468, JULY 26, 1932, 12 COMP. GEN. 122

CONTRACTS - FOREIGN ARTICLES - GENERAL SUPPLY COMMITTEE UNDER SECTION 5 OF THE ACT OF JULY 5, 1932, 47 STAT. 604, THE ACT OF MARCH 8, 1932, 47 STAT. 62, AND SECTION 4 OF THE ACT OF JUNE 30, 1932, 47 STAT. 473, APPROPRIATIONS TO WHICH THESE AND SIMILAR LAWS ARE APPLICABLE MAY NOT BE CHARGED WITH THE COST OF FOREIGN ARTICLES UNLESS THE INTERESTS OF THE UNITED STATES WILL NOT PERMIT THE PURCHASE OF ARTICLES OF THE GROWTH, PRODUCTION, OR MANUFACTURE OF THE UNITED STATES AND THE COST OF SUCH DOMESTIC ARTICLES IS NOT UNREASONABLE. ALL CONTRACTS BY THE GENERAL SUPPLY COMMITTEE, ENTERED INTO BEFORE THE BEGINNING OF THE FISCAL YEAR TO WHICH APPLICABLE, AS WELL AS ALL CONTRACTS ENTERED INTO AFTER THE BEGINNING OF SUCH FISCAL YEAR, MUST COMPLY WITH THE LAWS APPLICABLE TO THE APPROPRIATIONS FOR SUCH FISCAL YEARS AND NO DELIVERIES MAY BE ACCEPTED AND PAID FOR FROM APPROPRIATED FUNDS WHICH ARE NOT IN ACCORDANCE WITH THE LAW OF THE APPROPRIATIONS TO BE CHARGED.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, JULY 26, 1932:

THERE HAS BEEN RECEIVED YOUR LETTER OF JULY 15, 1932, AS FOLLOWS:

YOUR DECISION IS REQUESTED AS TO THE APPLICATION OF SECTION 5 OF THE ACT OF JULY 5, 1932, MAKING APPROPRIATIONS FOR THE TREASURY AND POST OFFICE DEPARTMENTS, TO PURCHASES OF SUPPLIES TO BE MADE UNDER CONTRACTS ENTERED INTO THROUGH THE GENERAL SUPPLY COMMITTEE FOR FURNISHING MISCELLANEOUS SUPPLIES DURING THE FISCAL YEAR 1933.

THIS SECTION PROVIDES THAT ONLY ARTICLES GROWN, PRODUCED, OR MANUFACTURED WITHIN THE LIMITS OF THE UNITED STATES SHALL BE PURCHASED OR CONTRACTED FOR. SIMILAR PROVISIONS ARE CARRIED IN OTHER APPROPRIATION ACTS.

PRIOR TO THE PASSAGE OF THIS ACT BIDS HAD BEEN ADVERTISED FOR AND CONTRACTS HAD BEEN AWARDED FOR FURNISHING THE ITEMS OF SUPPLY INCLUDED IN THE GENERAL SCHEDULE OF SUPPLIES. AMONG THESE ITEMS ARE SOME ARTICLES OF FOREIGN ORIGIN, AND YOUR DECISION IS REQUESTED AS TO WHETHER THIS AND OTHER ACTS CONTAINING SIMILAR PROVISIONS WOULD PRECLUDE THE PURCHASE OF ARTICLES ALREADY CONTRACTED FOR.

IF YOUR DECISION IS IN THE AFFIRMATIVE IT IS ALSO REQUESTED THAT YOU INFORM THIS DEPARTMENT OF THE PROCEDURE THAT SHOULD BE FOLLOWED AND WHETHER NEW BIDS SHOULD BE OBTAINED FOR THESE ITEMS OR WHETHER RECOURSE MAY BE HAD TO THOSE PREVIOUSLY RECEIVED THAT MAY OFFER ARTICLES OF THE GROWTH, PRODUCTION, OR MANUFACTURE OF THE UNITED STATES.

IT WILL BE APPRECIATED IF THIS MATTER CAN HAVE YOUR EARLY ATTENTION.

CONTRACTS ENTERED INTO PRIOR TO JULY 1, 1932, FOR THE FISCAL YEAR 1933 MUST, OF COURSE, BE SUBJECT TO THE TERMS OF THE APPROPRIATIONS OR OTHER LAWS APPLICABLE THERETO, SUCH AS SECTION 5 OF THE ACT OF JULY 5, 1932, PUBLIC, NO. 263, 47 STAT. 604, REFERRED TO IN YOUR SUBMISSION, WHICH PROVIDES:

IN THE EXPENDITURE OF APPROPRIATIONS IN THIS ACT OR APPROPRIATIONS HEREAFTER MADE, THE SECRETARY OF THE TREASURY IN THE CASE OF THE TREASURY DEPARTMENT AND THE POSTMASTER GENERAL IN THE CASE OF THE POST OFFICE DEPARTMENT, SHALL, UNLESS IN HIS DISCRETION THE INTEREST OF THE GOVERNMENT WILL NOT PERMIT, PURCHASE, OR CONTRACT FOR, WITHIN THE LIMITS OF THE UNITED STATES, ONLY ARTICLES OF THE GROWTH, PRODUCTION, OR MANUFACTURE OF THE UNITED STATES, NOTWITHSTANDING THAT SUCH ARTICLES OF THE GROWTH, PRODUCTION, OR MANUFACTURE OF THE UNITED STATES MAY COST MORE, IF SUCH EXCESS OF COST BE NOT UNREASONABLE. IN GIVING EFFECT TO THIS SECTION SPECIAL CONSIDERATION SHALL BE GIVEN TO THE DOMESTIC ARTICLE WHERE THE RAW MATERIAL OF WHICH THE ARTICLE IS MADE IS GROWN IN THE UNITED STATES AND THE ARTICLE IS MANUFACTURED IN THE UNITED STATES.

A SOMEWHAT SIMILAR PROVISION OF PERMANENT LAW IS CONTAINED IN THE ACT OF MARCH 8, 1932, PUBLIC, NO. 53, 47 STAT. 62, REGULATING THE USE OF APPROPRIATIONS FOR THE MILITARY AND NONMILITARY ACTIVITIES OF THE WAR DEPARTMENT AND A PROVISION SIMILAR TO THAT CONTAINED IN THE ABOVE QUOTED EXTRACT FROM THE ACT OF JULY 5, 1932, IS CONTAINED IN SECTION 4 OF THE ACT OF JUNE 30, 1932, PUBLIC, NO. 228, 47 STAT. 473. ALL CONTRACTS ENTERED INTO BY THE TREASURY DEPARTMENT UNDER THE GENERAL SUPPLY COMMITTEE STATUTES MUST CONFORM TO THE TERMS OF THE LAW APPLICABLE FOR THE FISCAL YEAR IN WHICH SUCH CONTRACTS ARE TO BE EFFECTIVE, AND YOU ARE ADVISED THAT ARTICLES NOT OF THE GROWTH, PRODUCTION, OR MANUFACTURE OF THE UNITED STATES CAN NOT BE CHARGED TO APPROPRIATIONS CONTAINING PROVISIONS SIMILAR TO THE EXTRACT HEREIN QUOTED FROM THE ACT OF JULY 5, 1932, OR TO THE PERMANENT PROVISIONS OF THE ACT OF MARCH 8, 1932, APPLICABLE TO THE WAR DEPARTMENT, UNLESS THE EXCESS COST OF THE ARTICLES OF THE GROWTH, PRODUCTION, OR MANUFACTURE OF THE UNITED STATES BE UNREASONABLE. IN OTHER WORDS, ARTICLES NOT OF THE GROWTH, PRODUCTION, OR MANUFACTURE OF THE UNITED STATES MAY NOT BE PURCHASED UNLESS THEY COME WITHIN THE EXCEPTION STATED IN THE LAW, AND YOU ARE ADVISED THAT RECOURSE MAY NOT BE HAD TO PROPOSALS PREVIOUSLY RECEIVED FROM BIDDERS OFFERING ARTICLES OF THE GROWTH, PRODUCTION, OR MANUFACTURE OF THE UNITED STATES WHEN THE FOREIGN ARTICLES WERE ACCEPTED. IT WILL BE NECESSARY TO READVERTISE FOR PROPOSALS FOR FURNISHING THESE ARTICLES AND THEN TO DETERMINE WHETHER THE DIFFERENCE IN COST BE REASONABLE OR UNREASONABLE AND WHETHER THE INTEREST OF THE GOVERNMENT WILL NOT PERMIT THE PURCHASE OR CONTRACTING FOR THE DOMESTIC ARTICLES. IF IN ANY CASE IT SHOULD BE BELIEVED THAT THE EXCESS COST OF THE DOMESTIC ARTICLE IS UNREASONABLE, THE MATTER SHOULD BE SUBMITTED HERE FOR DECISION BEFORE AWARD IS MADE OF THE CONTRACT.

WHERE THE APPROPRIATIONS OF A DEPARTMENT OR ESTABLISHMENT ARE SUBJECT TO SUCH A RESTRICTION, ITS ORDERS OR REQUISITIONS UNDER GENERAL SUPPLY COMMITTEE CONTRACTS SHOULD CONTAIN A NOTICE TO THE CONTRACTOR TO THE EFFECT THAT THE ORDER OR REQUISITION IS NOT TO BE FILLED UNLESS THE ARTICLE TO BE FURNISHED IS OF THE GROWTH, PRODUCTION, OR MANUFACTURE OF THE UNITED STATES.