A-60824, APRIL 20, 1935, 14 COMP. GEN. 769

A-60824: Apr 20, 1935

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

LEASES - ADVERTISEMENT FOR BIDS THE GENERAL RULE IS THAT THERE MUST BE ADVERTISING FOR BIDS FOR THE LEASING OF PREMISES FOR USE OF THE VARIOUS GOVERNMENT ACTIVITIES. AN EXAMINATION OF THE LEASE UPON ITS RECEIPT IN THIS OFFICE DISCLOSED THAT IT WAS NOT SUPPORTED BY ANY EVIDENCE THAT THE LEASE WAS AWARDED AS A RESULT OF COMPETITIVE BIDS AFTER ADVERTISING THE NEED FOR SPACE. YOUR OFFICE WAS REQUESTED TO FURNISH A PROPERLY EXECUTED CERTIFICATE OF AWARD. TOGETHER WITH A SHOWING AS TO ADVERTISING OR AN EXPLANATION IN THE EVENT THERE WAS NO ADVERTISING FOR THE SPACE REQUIRED. THE EXECUTIVE OFFICER OF YOUR ADMINISTRATION TRANSMITTED A STATEMENT AND CERTIFICATE OF AWARD WHEREIN IT WAS STATED THAT THE OFFICE SPACE IN QUESTION WAS LEASED WITHOUT ADVERTISING FOR REASONS AS FOLLOWS: 1.

A-60824, APRIL 20, 1935, 14 COMP. GEN. 769

LEASES - ADVERTISEMENT FOR BIDS THE GENERAL RULE IS THAT THERE MUST BE ADVERTISING FOR BIDS FOR THE LEASING OF PREMISES FOR USE OF THE VARIOUS GOVERNMENT ACTIVITIES, PURSUANT TO SECTION 3709, REVISED STATUTES, AND CLEARANCES OBTAINED FROM THE PROCUREMENT DIVISION, TREASURY DEPARTMENT, DO NOT RELIEVE THE ADMINISTRATIVE OFFICE FROM SUCH STATUTORY REQUIREMENT.

COMPTROLLER GENERAL MCCARL TO THE GOVERNOR, FARM CREDIT ADMINISTRATION, APRIL 20, 1935:

THERE HAS BEEN FILED IN THIS OFFICE LEASE NO. FC-138, ENTERED INTO ON JULY 1, 1934, BETWEEN THE FARM CREDIT ADMINISTRATION AND THE CHAMBER OF COMMERCE AND COMMERCIAL CLUB, INC., FOR 6,305 SQUARE FEET OF OFFICE SPACE IN THE CHAMBER OF COMMERCE BUILDING, SALT LAKE CITY, UTAH, FOR THE TERM BEGINNING JULY 1, 1934, AND ENDING JUNE 30, 1935, AT A MONTHLY RENTAL OF $410.

AN EXAMINATION OF THE LEASE UPON ITS RECEIPT IN THIS OFFICE DISCLOSED THAT IT WAS NOT SUPPORTED BY ANY EVIDENCE THAT THE LEASE WAS AWARDED AS A RESULT OF COMPETITIVE BIDS AFTER ADVERTISING THE NEED FOR SPACE. ACCORDINGLY, BY LETTER DATED FEBRUARY 5, 1935, YOUR OFFICE WAS REQUESTED TO FURNISH A PROPERLY EXECUTED CERTIFICATE OF AWARD, TOGETHER WITH A SHOWING AS TO ADVERTISING OR AN EXPLANATION IN THE EVENT THERE WAS NO ADVERTISING FOR THE SPACE REQUIRED. BY LETTER DATED FEBRUARY 27, 1935, THE EXECUTIVE OFFICER OF YOUR ADMINISTRATION TRANSMITTED A STATEMENT AND CERTIFICATE OF AWARD WHEREIN IT WAS STATED THAT THE OFFICE SPACE IN QUESTION WAS LEASED WITHOUT ADVERTISING FOR REASONS AS FOLLOWS:

1. SPACE IN THE FEDERAL BUILDING WAS UNOBTAINABLE AS EVIDENCED BY THE ENCLOSED PHOTOSTATIC COPY OF A LETTER FROM THE POSTMASTER AT SALT LAKE CITY.

2. BECAUSE OF THE LOW RENTAL RATE OF SEVENTY-EIGHT CENTS PER SQUARE FOOT INCLUDING HEAT, LIGHT, JANITOR AND ELEVATOR SERVICES.

3. BECAUSE OF THE PROBABLE NEED OF ADDITIONAL SPACE AND FOR THE RELINQUISHMENT OF CERTAIN SPACE OCCUPIED. INCIDENTALLY THE SPACE HAS SINCE BEEN REDUCED TO APPROXIMATELY 4,500 SQUARE FEET.

THE GENERAL RULE IS THAT THERE MUST BE ADVERTISING FOR BIDS FOR THE LEASING OF PREMISES FOR USE OF THE VARIOUS GOVERNMENT ACTIVITIES. SEE PARTICULARLY DECISION OF DECEMBER 13, 1933, A-52361, TO YOU.

IT IS ASSUMED THAT IT WOULD NOT SERIOUSLY BE CONTENDED THAT THE REASONS ASSIGNED BY THE EXECUTIVE OFFICER ARE SUFFICIENT TO JUSTIFY LEASING THE PREMISES HERE INVOLVED WITHOUT ADVERTISING FOR COMPETITIVE BIDS ON THE SPACE, FACILITIES AND SPECIAL SERVICES REQUIRED. WHILE A CLEARANCE IN THIS CASE WAS OBTAINED FROM THE PROCUREMENT DIVISION, TREASURY DEPARTMENT, SUCH CLEARANCES DO NOT RELIEVE THE ADMINISTRATIVE OFFICE FROM COMPLYING WITH THE REQUIREMENTS OF SECTION 3709, REVISED STATUTES.

THE ONLY PROPER WAY TO ASCERTAIN WHETHER WHAT WAS THOUGHT TO BE A LOW RENTAL OFFERED IN THIS CASE WAS THE LOWEST RENTAL AT WHICH SUITABLE SPACE, SERVICES AND FACILITIES COULD BE OBTAINED WAS BY ADVERTISING THE GOVERNMENT'S NEEDS. THEREFORE, IT IS REQUESTED THAT THE NECESSARY ADMINISTRATIVE ACTION BE TAKEN TO BRING TO THE ATTENTION OF THE CONTRACTING OFFICERS OF YOUR ADMINISTRATION AUTHORIZED TO LEASE PREMISES THE LEASING REQUIREMENTS OF THE GOVERNMENT AS OUTLINED IN MY DECISION OF DECEMBER 13, 1933, TO YOU.

VOUCHERS NOS. 27791, 27792, 27793, 27794, 27795, AND 31101, COVERING RENTAL OF THESE PREMISES FOR AUGUST, SEPTEMBER, OCTOBER, NOVEMBER, AND DECEMBER 1934, AND JANUARY 1935, SUBMITTED FOR PREAUDIT, WILL BE CERTIFIED FOR PAYMENT, IF OTHERWISE CORRECT, AND RETURNED THROUGH THE USUAL CHANNELS.