A-61183, APRIL 26, 1935, 14 COMP. GEN. 796

A-61183: Apr 26, 1935

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AS FOLLOWS: YOUR DECISION IS REQUESTED AS TO THE AVAILABILITY OF APPROPRIATED MONIES FOR PAYMENT IN THE EVENT OF A PURCHASE OF A RECONDITIONED FORD ENGINE. THIS SERVICE IS OFFERED AT A COST OF APPROXIMATELY $50 PER UNIT. THE ADVANTAGE TO BE GAINED BY THIS EXCHANGE IS APPARENT TO ADMINISTRATIVE OFFICERS IN THIS DEPARTMENT. THERE IS UNCERTAINTY AS TO THE PROPRIETY OF THE PROCEDURE AS IT INVOLVES THE PURCHASE OF A SECOND-HAND ENGINE AND INCLUDES THE TRADE-IN OF A COMPONENT PART OF A VEHICLE OWNED BY THE GOVERNMENT. YOUR DECISION ON THIS MATTER WILL BE GREATLY APPRECIATED. IT IS NOTED THAT YOUR LETTER DOES NOT SPECIFY ANY OF THE DIVISIONS OR BUREAUS OF THE INTERIOR DEPARTMENT FOR WHICH THE PURCHASE OF RECONDITIONED ENGINES.

A-61183, APRIL 26, 1935, 14 COMP. GEN. 796

PURCHASE OF RECONDITIONED ENGINES FOR MOTOR VEHICLES AN APPROPRIATION FOR THE PURCHASE, MAINTENANCE, AND REPAIR OF MOTOR VEHICLES WOULD BE AVAILABLE FOR PURCHASE OF RECONDITIONED ENGINES ADMINISTRATIVELY DETERMINED TO BE NEEDED TO REPLACE SIMILAR ENGINES, AND AN APPROPRIATION FOR PURCHASE AND EXCHANGE OF MOTOR VEHICLES WOULD BE AVAILABLE FOR THE EXCHANGE OF A USED ENGINE IN NEED OF REPAIRS IN PART PAYMENT FOR A RECONDITIONED ENGINE OF THE SAME TYPE, IF IN THE INTEREST OF THE UNITED STATES.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE INTERIOR, APRIL 26, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF MARCH 30, 1935, AS FOLLOWS:

YOUR DECISION IS REQUESTED AS TO THE AVAILABILITY OF APPROPRIATED MONIES FOR PAYMENT IN THE EVENT OF A PURCHASE OF A RECONDITIONED FORD ENGINE, INVOLVING THE TRADE-IN OF A USED ENGINE AS PART PAYMENT THEREFOR.

THE FORD MOTOR COMPANY HAS OFFERED THIS SERVICE TO USERS OF FORD VEHICLES, EMPHASIZING THE ADVANTAGES ACCRUING TO THE OWNER IN HAVING A FACTORY RECONDITIONED ENGINE INSTEAD OF AN ENGINE OVERHAULED AT A LOCAL REPAIR SHOP. THIS SERVICE IS OFFERED AT A COST OF APPROXIMATELY $50 PER UNIT.

THE ADVANTAGE TO BE GAINED BY THIS EXCHANGE IS APPARENT TO ADMINISTRATIVE OFFICERS IN THIS DEPARTMENT, BUT THERE IS UNCERTAINTY AS TO THE PROPRIETY OF THE PROCEDURE AS IT INVOLVES THE PURCHASE OF A SECOND-HAND ENGINE AND INCLUDES THE TRADE-IN OF A COMPONENT PART OF A VEHICLE OWNED BY THE GOVERNMENT.

YOUR DECISION ON THIS MATTER WILL BE GREATLY APPRECIATED.

IT IS NOTED THAT YOUR LETTER DOES NOT SPECIFY ANY OF THE DIVISIONS OR BUREAUS OF THE INTERIOR DEPARTMENT FOR WHICH THE PURCHASE OF RECONDITIONED ENGINES, USING IN PART PAYMENT THEREFOR THE TRADE-IN OF A USED ENGINE, AS SET FORTH BY YOU, IS CONTEMPLATED, NOR THE APPROPRIATION OR APPROPRIATIONS UNDER WHICH THE PURCHASES WOULD BE MADE. IT IS ASSUMED, HOWEVER, THAT YOU HAVE IN MIND THE PURCHASE OF RECONDITIONED ENGINES FOR ANY FORD MOTOR VEHICLES FOR WHICH THEY MAY BE NEEDED AND WHICH ARE USED BY ANY DIVISION OR BUREAU OF THE DEPARTMENT OF THE INTERIOR FOR WHICH THERE MAY BE AN APPROPRIATION FOR THE PURCHASE, MAINTENANCE, REPAIR, AND EXCHANGE OF MOTOR VEHICLES.

THE APPROPRIATIONS FOR SUCH PURPOSES FOR THE VARIOUS DIVISIONS AND BUREAUS OF THE DEPARTMENT OF THE INTERIOR CONTAINED IN THE APPROPRIATION ACT FOR THE FISCAL YEAR ENDING JUNE 30, 1935, FOR THE DEPARTMENT OF THE INTERIOR (48 STAT. 362), APPEAR TO VARY IN THEIR PROVISIONS. FOR INSTANCE, THE APPROPRIATION FOR CONTINGENT EXPENSES (48 STAT. 363) PROVIDES:

* * * PURCHASE AND EXCHANGE OF MOTOR TRUCKS, MOTORCYCLES, AND BICYCLES, MAINTENANCE, REPAIR, AND OPERATION OF TWO MOTOR-PROPELLED PASSENGER- CARRYING VEHICLES AND MOTOR TRUCKS, MOTORCYCLES, AND BICYCLES TO BE USED ONLY FOR OFFICIAL PURPOSES; * * *.

THAT FOR THE BUREAU OF INDIAN AFFAIRS (48 STAT. 366) PROVIDES:

VEHICLES, INDIAN SERVICE; NOT TO EXCEED $275,000 OF APPLICABLE APPROPRIATIONS MADE HEREIN FOR THE BUREAU OF INDIAN AFFAIRS SHALL BE AVAILABLE FOR THE MAINTENANCE, REPAIR, AND OPERATION OF MOTOR-PROPELLED AND HORSE-DRAWN PASSENGER-CARRYING VEHICLES FOR THE USE OF EMPLOYEES IN THE INDIAN FIELD SERVICE, INCLUDING THE TRANSPORTATION OF INDIAN SCHOOL PUPILS: PROVIDED, THAT NOT TO EXCEED $150,000 MAY BE USED FOR THE PURCHASE AND EXCHANGE OF MOTOR-PROPELLED PASSENGER-CARRYING VEHICLES, AND THAT SUCH VEHICLES SHALL BE USED ONLY FOR OFFICIAL SERVICE, INCLUDING THE TRANSPORTATION OF INDIAN SCHOOL PUPILS.

THAT FOR THE BUREAU OF RECLAMATION (48 STAT. 379) PROVIDES:

* * * MAINTENANCE AND OPERATION OF HORSE-DRAWN AND MOTOR-PROPELLED PASSENGER-CARRYING VEHICLES; NOT TO EXCEED $35,000 FOR PURCHASE AND EXCHANGE OF HORSE-DRAWN AND MOTOR-PROPELLED PASSENGER-CARRYING VEHICLES; *

AND THAT FOR THE GEOLOGICAL SURVEY (48 STAT. 382) PROVIDES:

* * * INCLUDING NOT TO EXCEED $30,000 FOR THE PURCHASE AND EXCHANGE, AND NOT TO EXCEED $50,000 FOR THE HIRE, MAINTENANCE, REPAIR, AND OPERATION OF MOTOR-PROPELLED AND HORSE-DRAWN PASSENGER-CARRYING VEHICLES FOR FIELD USE ONLY BY GEOLOGISTS, TOPOGRAPHERS, ENGINEERS, AND LAND CLASSIFIERS, AND THE GEOLOGICAL SURVEY IS AUTHORIZED TO EXCHANGE UNSERVICEABLE AND WORN-OUT PASSENGER-CARRYING AND FREIGHT CARRYING VEHICLES AS PART PAYMENT FOR NEW FREIGHT-CARRYING VEHICLES, * * *.

IT WOULD SEEM CLEAR THAT WHERE THE APPROPRIATION PROVIDES FOR THE PURCHASE, MAINTENANCE, AND REPAIR OF MOTOR VEHICLES, THERE WOULD BE NO OBJECTION TO THE PURCHASE THEREUNDER OF RECONDITIONED ENGINES WHERE IT IS ADMINISTRATIVELY DETERMINED THAT SUCH ENGINES ARE NEEDED TO REPLACE SIMILAR ENGINES IN MOTOR VEHICLES IN ORDER TO PROLONG THE USEFULNESS OF SUCH VEHICLE AND WHERE IT IS IN THE INTERESTS OF THE UNITED STATES AND WHERE THE ENGINE IS TO BE USED IN THE CLASS OF VEHICLE--- THAT IS, PASSENGER-CARRYING OR TRUCK--- THE PURCHASE, MAINTENANCE, AND REPAIR OF WHICH ARE PROVIDED FOR IN THE APPROPRIATION. AND ASSUMING ALSO THAT SUCH PURCHASE AND EXCHANGE ARE MADE AFTER ADVERTISING FOR COMPETITIVE BIDS.

AS TO THE TRADE-IN OF A USED ENGINE, IT MAY BE SAID THAT WHILE THE APPROPRIATION ACTS WHICH PROVIDE FOR THE PURCHASE AND EXCHANGE OF MOTOR VEHICLES DO NOT EXPRESSLY PROVIDE FOR THE EXCHANGE OF A PART OF A MOTOR VEHICLE, IT WOULD APPEAR THAT THE EXCHANGE OF A USED ENGINE IN NEED OF REPAIRS IN PART PAYMENT FOR A RECONDITIONED ENGINE OF A SIMILAR TYPE TO REPLACE SUCH USED ENGINE WOULD NOT CONTRAVENE THE APPROPRIATION WHERE SUCH EXCHANGE IS IN THE INTERESTS OF THE UNITED STATES. NO OBJECTION WILL BE RAISED BY THIS OFFICE TO SUCH A COURSE WHERE THE APPROPRIATION PROVIDES FOR THE PURCHASE AND EXCHANGE OF MOTOR VEHICLES WHERE THE VEHICLES ARE OF THE CLASS DESIGNATED IN THE APPROPRIATION; WHERE THE USED ENGINE IS IN NEED OF OVERHAULING AND REPAIRS; AND WHERE THE EXCHANGE APPEARS TO BE IN THE INTERESTS OF THE UNITED STATES, UNLESS, HOWEVER, THE APPROPRIATION AUTHORIZES THE EXCHANGE IN THE PURCHASE OF A NEW VEHICLE ONLY. HOWEVER, IN VIEW OF THE TERMS OF SECTION 3 (C) OF THE ACT OF MARCH 15, 1934, 48 STAT. 450, THERE SHOULD BE DEBITED TO THE APPROPRIATION INVOLVED AND CREDITED AS MISCELLANEOUS RECEIPTS AN AMOUNT EQUIVALENT TO THE SALES VALUE OF THE ENGINE USED AS A TRADE-IN ALLOWANCE FOR THE ENGINE REPLACED IN THE FORD TRUCK OR OTHER VEHICLE AND THIS SHOULD BE SHOWN ON THE VOUCHER WHEREON PAYMENT IS MADE FOR THE RECONDITIONED ENGINE.