A-43735, AUGUST 8, 1932, 12 COMP. GEN. 198

A-43735: Aug 8, 1932

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ECONOMY ACT - CHICAGO WORLD'S FAIR RENTALS - DELEGATION OF AUTHORITY THE RESTRICTION IN SECTION 322 OF THE ECONOMY ACT THAT RENTALS SHOULD NOT EXCEED 15 PERCENT OF THE FAIR MARKET VALUE OF THE RENTED PREMISES IS APPLICABLE TO ANY BUILDINGS LEASED FOR THE PRESENT FISCAL YEAR. 1932: REFERENCE IS HAD TO YOUR LETTER OF JULY 26. THE ARCHITECT WHO DESIGNED THE PROPOSED GOVERNMENT BUILDING IS ASSOCIATED WITH THE CHICAGO WORLD'S FAIR. IT IS NOW NECESSARY TO ACT WITH ALL POSSIBLE DESPATCH IN ORDER TO COMPLETE THE FINAL WORKING DRAWINGS SO THAT THE BUILDING MAY BE GOTTEN UNDER COVER BEFORE THE RIGOROUS CHICAGO WINTER SETS IN. THE WORKING DRAWINGS ARE NOW IN PREPARATION. THE QUESTION WE WOULD LIKE YOU ESPECIALLY TO RULE UPON IS WHETHER THIS CONTRACT CAN BE MADE WITHOUT COMPETITIVE BIDDING.

A-43735, AUGUST 8, 1932, 12 COMP. GEN. 198

ECONOMY ACT - CHICAGO WORLD'S FAIR RENTALS - DELEGATION OF AUTHORITY THE RESTRICTION IN SECTION 322 OF THE ECONOMY ACT THAT RENTALS SHOULD NOT EXCEED 15 PERCENT OF THE FAIR MARKET VALUE OF THE RENTED PREMISES IS APPLICABLE TO ANY BUILDINGS LEASED FOR THE PRESENT FISCAL YEAR, NOTWITHSTANDING THAT THEY MAY BE OF SPECIAL OR TEMPORARY CHARACTER, SUCH AS THE BUILDINGS REQUIRED FOR THE PARTICIPATION BY THE UNITED STATES IN THE CHICAGO WORLD'S FAIR KNOWN AS ,A CENTURY OF PROGRESS.' IN VIEW OF THE SPECIFIC AUTHORITY IN SECTION 3 OF THE ACT OF FEBRUARY 8, 1932, 47 STAT. 40, FOR THE COMMISSIONER OF THE UNITED STATES TO "A CENTURY OF PROGRESS" TO SUBDELEGATE HIS POWERS, IF THE COMMISSION SHOULD AUTHORIZE THE COMMISSIONER TO DELEGATE TO AN ASSISTANT COMMISSIONER THE POWER OF APPOINTING THE NECESSARY EMPLOYEES, APPOINTMENTS SO MADE WOULD BE LEGAL IN THE ABSENCE OF OTHER OBJECTION.

COMPTROLLER GENERAL MCCARL TO THE COMMISSIONER OF THE UNITED STATES TO A CENTURY OF PROGRESS, AUGUST 8, 1932:

REFERENCE IS HAD TO YOUR LETTER OF JULY 26, 1932, SUBMITTING FOR DECISION BY THIS OFFICE, THE FOLLOWING QUESTIONS:

* * * THE COMMISSION TO THE CHICAGO WORLD'S FAIR, WITH THE APPROVAL OF THE COMMISSION OF FINE ARTS, HAS ACCEPTED A GENERAL PLAN OF THE GOVERNMENT BUILDING WHICH FITS THE GENERAL SCHEME AND STYLE OF THE ARCHITECTURE OF THE OTHER BUILDINGS ALREADY ERECTED AND TO BE ERECTED BY THE CHICAGO WORLD'S FAIR EXPOSITION AUTHORITIES. THE ARCHITECT WHO DESIGNED THE PROPOSED GOVERNMENT BUILDING IS ASSOCIATED WITH THE CHICAGO WORLD'S FAIR. BECAUSE OF THE DELAY IN SECURING ACTION FROM CONGRESS, IT IS NOW NECESSARY TO ACT WITH ALL POSSIBLE DESPATCH IN ORDER TO COMPLETE THE FINAL WORKING DRAWINGS SO THAT THE BUILDING MAY BE GOTTEN UNDER COVER BEFORE THE RIGOROUS CHICAGO WINTER SETS IN, THEREBY ENABLING THE WORK TO PROCEED ON THE INTERIOR OF THE BUILDING DURING THE WINTER. THE WORKING DRAWINGS ARE NOW IN PREPARATION.

PUBLIC BILL NO. 14 PROVIDES THAT THE COMMISSION MAY CONTRACT WITH THE CHICAGO WORLD'S FAIR AUTHORITIES TO CONSTRUCT THE GOVERNMENT BUILDING. THE QUESTION WE WOULD LIKE YOU ESPECIALLY TO RULE UPON IS WHETHER THIS CONTRACT CAN BE MADE WITHOUT COMPETITIVE BIDDING. IF COMPETITIVE BIDDING IS REQUIRED, THERE WILL BE MUCH ADDITIONAL EXPENSE AS REGARDS ARCHITECT'S FEES AND PROBABLY FOR PREPARING WORKING DRAWINGS. * * *

PUBLIC BILL NO. 14 ALSO PROVIDES FOR THE RENTAL OF SPACE FROM THE EXPOSITION AUTHORITIES. IT MAY BE DESIRABLE TO CONTRACT WITH THE WORLD'S FAIR CORPORATION TO ERECT A BUILDING WHICH WE WOULD LEASE FROM THEM DURING THE LIFE OF THE EXPOSITION. IN FACT THE COMMISSION AND THE COMMISSIONER ARE GIVING THAT POINT VERY FAVORABLE CONSIDERATION.

SECTION 322, PUBLIC NO. 212 72D CONGRESS, APPROVED JUNE 30, 1932, READS: HEREAFTER NO APPROPRIATION SHALL BE OBLIGATED OR EXPENDED FOR THE RENT OF ANY BUILDING OR PART OF A BUILDING TO BE OCCUPIED FOR GOVERNMENT PURPOSES AT A RENTAL IN EXCESS OF PER ANNUM RATE OF 15 PERCENTUM OF THE FAIR MARKET VALUE OF THE RENTED PREMISES AT DATE OF THE LEASE UNDER WHICH THE PREMISES ARE TO BE OCCUPIED BY THE GOVERNMENT NOR FOR ALTERATIONS, IMPROVEMENTS, AND REPAIRS OF THE RENTED PREMISES IN EXCESS OF 25 PERCENTUM OF THE AMOUNT OF THE RENT FOR THE FIRST YEAR OF THE RENTAL TERM, OR FOR THE RENTAL TERM IF LESS THAN ONE YEAR: PROVIDED, THAT THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO LEASES HERETOFORE MADE, EXCEPT WHEN RENEWALS THEREOF ARE MADE HEREAFTER, NOR TO LEASES OF PREMISES IN FOREIGN COUNTRIES FOR THE FOREIGN SERVICES OF THE UNITED STATES.'

IN VIEW OF THE SPECIAL AND TEMPORARY CHARACTER OF ANY BUILDING TO BE USED BY THE GOVERNMENT AT THE CHICAGO WORLD'S FAIR AND THE SPECIAL PURPOSES OF THE ACT PROVIDING FOR THE PARTICIPATION OF THE UNITED STATES IN "A CENTURY OF PROGRESS" (PUBLIC NO. 04, 72D CONGRESS, APPROVED FEBRUARY 8, 1932), IT IS PROBABLE THAT THE LIMITATIONS IN THE ABOVE-QUOTED PROVISIONS AS TO THE AMOUNTS TO BE PAID FOR RENT CAN BE CONSTRUED AS NOT APPLYING. HOWEVER, BEFORE TAKING ANY DEFINITE ACTION REGARDING THE LEASING OF SUCH A BUILDING, IT IS DESIRED TO OBTAIN A RULING FROM THE COMPTROLLER GENERAL AS TO WHETHER THE LIMITATION IS APPLICABLE. ATTENTION IS CALLED TO THE ACT OF FEBRUARY 8, 1932, PUBLIC NO. 14, 72D CONGRESS, AND PARTICULARLY TO SECTION 5, WHICH AUTHORIZES SPECIFICALLY THE EXPENDITURE OF NOT TO EXCEED $550,000 FOR EITHER THE ERECTION OF A BUILDING OR A GROUP OF BUILDINGS OR THE RENTAL OF SUCH SPACE, OR THE ERECTION OF A BUILDING OR BUILDINGS AND THE RENTAL OF ADDITIONAL SPACE THAT MAY BE NECESSARY. THE ABOVE SUM ALSO INCLUDES THE AMOUNT TO BE EXPENDED FOR THE DECORATION OF SUCH STRUCTURE OR STRUCTURES AND THE MAINTENANCE OF SUCH BUILDINGS, SITE, AND GROUNDS DURING THE PERIOD OF THE EXPOSITION. THE SPECIAL AND TEMPORARY PURPOSE OF THIS ACT IS POINTED OUT, AS WELL AS THE FACT THAT THE BUILDINGS ARE NOT TO BE OF A PERMANENT CONSTRUCTION BUT OF A TEMPORARY CONSTRUCTION AND THAT IT IS THE INTENTION TO DESTROY THEM AT THE CONCLUSION OF THE CELEBRATION OF THE WORLD'S FAIR. IT MIGHT ALSO BE POINTED OUT THAT THE RENTAL OF SUCH BUILDINGS OR SPACE AS MAY BE NECESSARY WOULD PROBABLY SAVE THE GOVERNMENT MONEY, AND, FURTHERMORE, WOULD SAVE IT THE INCONVENIENCE AND EXPENSE OF DESTROYING THE BUILDING AT THE CONCLUSION OF THE WORLD'S FAIR.

I WOULD BE PLEASED ALSO TO HAVE YOU RULE AS TO THE LEGALITY OF THE APPOINTMENT OF THE PERSONNEL OF THE COMMISSION BY THE ASSISTANT COMMISSIONER UNDER THE AUTHORITY DELEGATED TO HIM BY THE COMMISSIONER. THAT QUESTION WAS RAISED IN MY INTERVIEW WITH YOU THIS MORNING.

AS SECTION 5 OF THE ACT OF FEBRUARY 8, 1932, PUBLIC NO. 14, 47 STAT. 40, PROVIDES SPECIFICALLY THAT "THE COMMISSION MAY CONTRACT WITH A CENTURY OF PROGRESS (THE CHICAGO WORLD'S FAIR CENTENNIAL CELEBRATION) FOR THE DESIGNING AND ERECTION OF SUCH BUILDING OR BUILDINGS AND/OR FOR THE RENTAL OF SUCH SPACE AS SHALL BE DEEMED PROPER," IT WILL NOT BE NECESSARY FOR THE CONTRACT FOR THE ERECTION OF BUILDINGS FOR THE UNITED STATES COMMISSION TO BE LET BY COMPETITIVE BIDDING IF THE CONTRACT FOR THE ERECTION IS TO BE MADE WITH A CENTURY OF PROGRESS.

SECTION 322 OF THE ECONOMY ACT OF JUNE 30, 1932, 47 STAT. 412, QUOTED IN YOUR SUBMISSION, MAKES NO EXCEPTION IN THE CASE OF BUILDINGS FOR SPECIAL OR TEMPORARY PURPOSES. SECTION 803 OF THAT ACT, 47 STAT. 419, PROVIDES:

THE PROVISIONS OF PART 2 HEREIN ARE HEREBY MADE APPLICABLE TO THE APPROPRIATIONS AVAILABLE FOR THE FISCAL YEAR 1933, WHETHER CONTAINED IN THIS ACT OR IN ACTS PRIOR OR SUBSEQUENT TO THE DATE OF THE APPROVAL OF THIS ACT.

IT MUST BE HELD, THEREFORE, THAT THE RESTRICTION IN SECTION 322 OF THE ACT OF JUNE 30, 1932, WOULD BE APPLICABLE TO ANY BUILDING LEASES WHICH MAY BE ENTERED INTO DURING THE PRESENT FISCAL YEAR NOTWITHSTANDING THE SPECIAL OR TEMPORARY CHARACTER OF THE BUILDINGS LEASED.

SECTION 3 OF THE ACT OF FEBRUARY 8, 1932, 47 STAT. 40, PROVIDES:

THE COMMISSIONER MAY EMPLOY SUCH CLERKS, STENOGRAPHERS, AND OTHER ASSISTANTS AS MAY BE NECESSARY AND FIX THEIR REASONABLE COMPENSATIONS WITHIN THE GRADES AND RATES OF COMPENSATION FIXED BY THE CLASSIFICATION ACT OF 1923, AS AMENDED; PURCHASE SUCH MATERIAL, CONTRACT FOR SUCH LABOR AND OTHER SERVICES, AND EXERCISE SUCH POWERS AS ARE DELEGATED TO HIM BY THE COMMISSION AS HEREINBEFORE PROVIDED, AND IN ORDER TO FACILITATE THE FUNCTIONING OF HIS OFFICE MAY SUBDELEGATE SUCH POWERS (AUTHORIZED OR DELEGATED) TO OFFICERS AND EMPLOYEES AS MAY BE DEEMED ADVISABLE BY THE COMMISSION.

IN VIEW OF THE SPECIFIC AUTHORITY TO SUBDELEGATE SUCH POWERS THEREIN CONFERRED UPON HIM AS MAY BE DEEMED ADVISABLE BY THE COMMISSION, IF THE COMMISSION SHOULD AUTHORIZE THE COMMISSIONER TO DELEGATE TO AN ASSISTANT COMMISSIONER HIS POWERS OF APPOINTMENT, APPOINTMENTS MADE BY SUCH ASSISTANT COMMISSIONER PURSUANT THERETO WOULD BE LEGAL IN THE ABSENCE OF OTHER OBJECTION.