A-63659, JULY 18, 1935, 15 COMP. GEN. 43

A-63659: Jul 18, 1935

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MAY NOT BE DISREGARDED WHEN THERE IS CONTEMPLATED THE JOINT USE OF APPROPRIATIONS MADE FOR THE DISTRICT OF COLUMBIA FOR SUCH PURPOSES AND THE FUNDS ALLOTTED TO THE DISTRICT OF COLUMBIA UNDER SECTION 1 OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935. THERE ARE USED FUNDS ALLOTTED TO THE DISTRICT OF COLUMBIA UNDER THE PROVISIONS OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935. THERE ARE FOR APPLICATION THE RESTRICTIONS AND LIMITATIONS PLACED UPON SUCH FUNDS BY THE SAID ACT AND THE REGULATIONS OF THE PRESIDENT ISSUED THEREUNDER. THE POLICY IS THAT ONLY WORTH-WHILE PROJECTS BE UNDERTAKEN. THE COMMISSIONERS ARE ENTIRELY IN ACCORD WITH THIS POLICY AND DESIRE IN EVERY WAY TO CARRY ON THE PROJECTS OF THIS KIND AND TO THIS END TO USE CERTAIN OF THE DISTRICT APPROPRIATIONS AVAILABLE FOR THE CURRENT FISCAL YEAR TO SUPPLEMENT ALLOTMENTS OF FEDERAL FUNDS.

A-63659, JULY 18, 1935, 15 COMP. GEN. 43

DISTRICT OF COLUMBIA - ALLOTMENT OF FUNDS UNDER EMERGENCY RELIEF APPROPRIATION ACT OF 1935 SECTION 5 OF THE ACT OF JUNE 11, 1878, 20 STAT. 102, REQUIRING SEWER CONSTRUCTION WORK, ETC., COSTING IN EXCESS OF $1,000 TO BE ADVERTISED AND PERFORMED UNDER CONTRACT, MAY NOT BE DISREGARDED WHEN THERE IS CONTEMPLATED THE JOINT USE OF APPROPRIATIONS MADE FOR THE DISTRICT OF COLUMBIA FOR SUCH PURPOSES AND THE FUNDS ALLOTTED TO THE DISTRICT OF COLUMBIA UNDER SECTION 1 OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935, 49 STAT. 115, FOR USE ON LIKE PROJECTS FOR THE PURPOSE OF PROVIDING RELIEF--- THERE BEING NOTHING IN THE ORGANIC ACT OF 1878 REQUIRING THAT THE SAME APPROPRIATION OR FUND BE CHARGED WITH THE ENTIRE COST OF SUCH CONTRACTS. WHERE, IN THE PROSECUTION OF WORK UNDER THE ORGANIC ACT OF 1878, THERE ARE USED FUNDS ALLOTTED TO THE DISTRICT OF COLUMBIA UNDER THE PROVISIONS OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935, THERE ARE FOR APPLICATION THE RESTRICTIONS AND LIMITATIONS PLACED UPON SUCH FUNDS BY THE SAID ACT AND THE REGULATIONS OF THE PRESIDENT ISSUED THEREUNDER.

COMPTROLLER GENERAL MCCARL TO THE PRESIDENT, BOARD OF COMMISSIONERS, DISTRICT OF COLUMBIA, JULY 18, 1935:

CONSIDERATION HAS BEEN GIVEN TO THE MATTER PRESENTED IN YOUR LETTER OF JULY 11, 1935, AS FOLLOWS:

THE COMMISSIONERS OF THE DISTRICT OF COLUMBIA REQUEST YOUR DECISION TO THE QUESTION HEREINAFTER PRESENTED.

THE QUESTION INVOLVED RELATES TO THE USE OF APPROPRIATIONS OF THE DISTRICT OF COLUMBIA, AS CONTAINED IN THE DISTRICT APPROPRIATION ACT FOR THE FISCAL YEAR 1936, IN CONJUNCTION WITH FUNDS ALLOTTED TO THE DISTRICT ON APPROVED PROJECTS UNDER THE PROVISIONS OF THE "EMERGENCY RELIEF APPROPRIATION ACT OF 1935.'

UNDER THE PROVISIONS OF THE LATTER-MENTIONED ACT, THE POLICY IS THAT ONLY WORTH-WHILE PROJECTS BE UNDERTAKEN. THE COMMISSIONERS ARE ENTIRELY IN ACCORD WITH THIS POLICY AND DESIRE IN EVERY WAY TO CARRY ON THE PROJECTS OF THIS KIND AND TO THIS END TO USE CERTAIN OF THE DISTRICT APPROPRIATIONS AVAILABLE FOR THE CURRENT FISCAL YEAR TO SUPPLEMENT ALLOTMENTS OF FEDERAL FUNDS, OR VICE VERSA, AS THE CASE MAY BE.

ASSUMING AN ALLOTMENT OF $900 FOR EACH EMPLOYABLE GIVEN A TWELVE MONTHS' ASSIGNMENT, THIS SUM MUST INCLUDE ALL ITEMS OF COST, NAMELY, PAYMENT OF THE SECURITY WAGES, PURCHASE OF MATERIALS, RENTAL OF TRUCKS AND EQUIPMENT, SUPERVISION, AND ADMINISTRATIVE EXPENSES. AT LEAST 90 PERCENT OF ALL PERSONNEL EMPLOYED ON EACH PROJECT MUST BE FROM THE RELIEF PAY ROLL.

THE COMMISSIONERS FIND THAT IN ORDER TO PROVIDE FOR PROJECTS OF SUITABLE CHARACTER IN THE DISTRICT OF COLUMBIA IT IS NECESSARY TO PURCHASE MATERIALS AND PROBABLY RENT TRUCKS AND EQUIPMENT FROM DISTRICT APPROPRIATIONS. FOR EXAMPLE, CERTAIN SEWER-CONSTRUCTION PROJECTS HAVE ALREADY BEEN APPROVED BY THE COMMISSIONERS AND FORWARDED THROUGH REGULAR CHANNELS FOR AN ALLOTMENT FROM THE FEDERAL EMERGENCY RELIEF APPROPRIATION. IT WILL NOT BE POSSIBLE TO BUILD THESE SEWERS, ON THE BASIS OF THE COST PER EMPLOYABLE REQUIRED TO BE OBSERVED, UNLESS A DISTRICT OF COLUMBIA APPROPRIATION, AVAILABLE FOR SEWER CONSTRUCTION, CAN BE USED TO ASSIST IN THE EXECUTION OF THE PROJECT THROUGH THE PURCHASE AND CONTRIBUTION OF SUCH MATERIAL AS MAY BE NECESSARY, AND ALSO IF NECESSARY THE RENTAL OF TRUCKS AND OTHER EQUIPMENT.

IN CONNECTION WITH THIS MATTER, ATTENTION IS INVITED TO THE PROVISIONS OF THE ACT OF JUNE 11, 1878, CREATING A PERMANENT FORM OF GOVERNMENT IN THE DISTRICT OF COLUMBIA, WHICH, AS AMENDED, REQUIRES SEWER-CONSTRUCTION WORK COSTING IN EXCESS OF $1,000 TO BE ADVERTISED AND PERFORMED UNDER CONTRACT.

ANOTHER POINT WHICH SHOULD BE CONSIDERED IS THAT THE APPROPRIATIONS IN THE 1936 DISTRICT APPROPRIATION ACT CONTEMPLATED EXPENDITURES TO BE MADE IN ACCORDANCE WITH PROVISIONS OF EXISTING LAW. IN EXPENDING THE APPROPRIATIONS FOR, SAY, MATERIAL ONLY, CONTRACT WORK WOULD BE ELIMINATED FROM CONSIDERATION, EXCEPT THAT THE MATERIAL IN QUESTION WOULD BE PURCHASED UNDER COMPETITIVE BIDS. THE ELIMINATION OF THE BUILDING CONTRACTOR MAY CONCEIVABLY RESULT IN PROTESTS AGAINST THE PROPOSAL TO USE FEDERAL ALLOTMENTS AND DISTRICT APPROPRIATIONS JOINTLY IN THE EXECUTION OF THE RELIEF-WORK PROJECTS.

THE COMMISSIONERS, HOWEVER, BELIEVE SUCH AN ARRANGEMENT TO BE IN THE PUBLIC INTEREST, PROVIDING, AS IT WILL, MUCH MORE WORTH-WHILE PROJECTS THAN COULD BE ADOPTED IF LIMITED ALONE TO THE FEDERAL ALLOTMENTS TO MEET ALL COSTS.

IT SHOULD ALSO BE UNDERSTOOD THAT IN THE EVENT OF YOUR APPROVAL OF THEREQUEST OF THE COMMISSIONERS AS TO THE USE OF SEWER APPROPRIATIONS IN CARRYING ON THESE RELIEF-WORK PROJECTS, IT IS INTENDED TO EXTEND THE SIMILAR ARRANGEMENT TO OTHER DISTRICT APPROPRIATIONS FOR THE FISCAL YEAR 1936, WHERE PROJECTS HAVE BEEN APPROVED AND FEDERAL ALLOTMENTS MADE, INCLUDING APPROPRIATIONS FOR REPAIRS TO MUNICIPAL BUILDINGS, APPROPRIATIONS FOR STREET AND ROAD WORK, APPROPRIATIONS FOR THE WATER DEPARTMENT, AND PROBABLY OTHERS OF AN AVAILABLE NATURE.

THE COMMISSIONERS WOULD APPRECIATE IT IF YOU WOULD GIVE YOUR EARLY DECISION TO THE QUESTION WHETHER THEY MAY USE 1936 DISTRICT OF COLUMBIA APPROPRIATIONS AVAILABLE FOR CONSTRUCTION, REPAIRS, AND MAINTENANCE WORK FOR THE PURCHASE OF MATERIALS AND, IF NEED BE, RENTAL OF TRUCKS AND EQUIPMENT, IN CONNECTION WITH THE EXECUTION OF PROJECTS FOR WHICH ALLOTMENTS MAY BE MADE TO THE DISTRICT UNDER THE PROVISIONS OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935.

THE ACT OF JUNE 11, 1878, 20 STAT. 102, PROVIDING A PERMANENT FORM OF GOVERNMENT FOR THE DISTRICT OF COLUMBIA, AMONG OTHER THINGS, PROVIDED (20 STAT. 105):

SEC. 5. THAT HEREAFTER WHEN ANY REPAIRS OF STREETS, AVENUES, ALLEYS, OR SEWERS WITHIN THE DISTRICT OF COLUMBIA ARE TO BE MADE, OR WHEN NEW PAVEMENTS ARE TO BE SUBSTITUTED IN PLACE OF THOSE WORN OUT, NEW ONES LAID, OR NEW STREETS OPENED, SEWERS BUILT, OR ANY WORKS THE TOTAL COST OF WHICH SHALL EXCEED THE SUM OF ONE THOUSAND DOLLARS, NOTICE SHALL BE GIVEN IN ONE NEWSPAPER IN WASHINGTON AND IF THE TOTAL COST SHALL EXCEED FIVE THOUSAND DOLLARS, THEN IN ONE NEWSPAPER IN EACH OF THE CITIES OF NEW YORK, PHILADELPHIA, AND BALTIMORE ALSO FOR ONE WEEK, FOR PROPOSALS, WITH FULL SPECIFICATIONS AS TO MATERIALS FOR THE WHOLE OR ANY PORTION OF THE WORKS PROPOSED TO BE DONE; AND THE LOWEST RESPONSIBLE PROPOSAL FOR THE KIND AND CHARACTER OF PAVEMENT OR OTHER WORK WHICH THE COMMISSIONERS SHALL DETERMINE UPON SHALL IN ALL CASES BE ACCEPTED: PROVIDED, HOWEVER, THAT THE COMMISSIONERS SHALL HAVE THE RIGHT, IN THEIR DISCRETION, TO REJECT ALL OF SUCH PROPOSALS: PROVIDED, THAT WORK CAPABLE OF BEING EXECUTED UNDER A SINGLE CONTRACT SHALL NOT BE SUBDIVIDED SO AS TO REDUCE THE SUM OF MONEY TO BE PAID THEREFOR TO LESS THAN ONE THOUSAND DOLLARS. ALL CONTRACTS FOR THE CONSTRUCTION, IMPROVEMENT, ALTERATION, OR REPAIRS OF THE STREETS, AVENUES, HIGHWAYS, ALLEYS, GUTTERS, SEWERS, AND ALL WORK OF LIKE NATURE SHALL BE MADE AND ENTERED INTO ONLY BY AND WITH THE OFFICIAL UNANIMOUS CONSENT OF THE COMMISSIONERS OF THE DISTRICT, AND ALL CONTRACTS SHALL BE COPIED IN A BOOK KEPT FOR THAT PURPOSE AND BE SIGNED BY THE SAID COMMISSIONERS, AND NO CONTRACT INVOLVING AN EXPENDITURE OF MORE THAN ONE HUNDRED DOLLARS SHALL BE VALID UNTIL RECORDED AND SIGNED AS AFORESAID.

THE FUNDS ALLOTTED OR TO BE ALLOTTED TO THE DISTRICT OF COLUMBIA AS REFERRED TO IN YOUR LETTER, SUPRA, CONSTITUTE ALLOCATIONS OF FUNDS MADE AVAILABLE UNDER THE PROVISIONS OF SECTION 1 OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935, 49 STAT. 115, 116, IN PART, AS FOLLOWS:

* * * PROVIDED, * * * THIS APPROPRIATION SHALL BE AVAILABLE FOR THE FOLLOWING CLASSES OF PROJECTS, AND THE AMOUNTS TO BE USED FOR EACH CLASS SHALL NOT, EXCEPT AS HEREINAFTER PROVIDED, EXCEED THE RESPECTIVE AMOUNTS STATED, NAMELY: * * * (G) LOANS OR GRANTS, OR BOTH, FOR PROJECTS OF STATES, TERRITORIES, POSSESSIONS, INCLUDING SUBDIVISIONS AND AGENCIES THEREOF, MUNICIPALITIES, AND THE DISTRICT OF COLUMBIA, AND SELF- LIQUIDATING PROJECTS OF PUBLIC BODIES THEREOF, WHERE, IN THE DETERMINATION OF THE PRESIDENT, NOT LESS THAN TWENTY-FIVE PERCENTUM OF THE LOAN OR THE GRANT, OR THE AGGREGATE THEREOF, IS TO BE EXPENDED FOR WORK UNDER EACH PARTICULAR PROJECT, $900,000,000; * * *.

WHILE ALLOCATIONS UNDER THIS ACT ARE AUTHORIZED TO BE MADE FOR CERTAIN CLASSES OF PROJECTS THEREIN PROVIDED OR OTHERWISE PROVIDING "RELIEF, WORK RELIEF AND TO INCREASE EMPLOYMENT BY PROVIDING FOR USEFUL PROJECTS" IN THE EXPENDITURE OF FUNDS UNDER ALLOCATIONS TO THE DISTRICT OF COLUMBIA FOR USE ON APPROVED PROJECTS, THERE MAY NOT BE DISREGARDED THE PROVISIONS IN THE ORGANIC ACT OF 1878, SUPRA, WHICH ARE FULLY IN FORCE AND FOR APPLICATION.

IT SHOULD BE NOTED, HOWEVER, THAT ALTHOUGH SAID ORGANIC ACT REQUIRES ADVERTISING AND THE AWARDING OF CONTRACTS FOR JOBS, THE COST OF WHICH EXCEEDS THE AMOUNT STATED IN THE ACT, THERE IS NOTHING IN THE LAW REQUIRING THAT THE SAME APPROPRIATION OR FUND SHALL BE CHARGED WITH THE ENTIRE COST OF SUCH CONTRACTS. IN THE CIRCUMSTANCES, IF IT BE DEEMED IN THE PUBLIC INTEREST TO USE BOTH APPROPRIATED MONEYS AND FUNDS MADE AVAILABLE TO THE DISTRICT OF COLUMBIA UNDER THE ACT OF APRIL 8, 1935, FOR PROSECUTING WORK ON PROJECTS FOR WHICH FUNDS MAY BE ALLOCATED UNDER SAID ACT, THERE WOULD APPEAR TO BE NO LEGAL OBJECTION TO THE ADOPTION OF A PROCEDURE WHEREBY THE MATERIALS, SUPPLIES, AND EQUIPMENT MAY BE CHARGED TO APPLICABLE APPROPRIATIONS OF THE DISTRICT OF COLUMBIA AND LABOR TO THE ALLOTTED FUNDS.

IN CONNECTION WITH THE MATTER GENERALLY, ATTENTION IS INVITED TO THE RESTRICTIONS AND LIMITATIONS APPLICABLE TO ALLOTTED FUNDS AS IMPOSED BY THE PROVISIONS OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 AND THE REGULATIONS ISSUED THEREUNDER BY THE PRESIDENT RELATIVE TO THE EMPLOYMENT OF LABOR. SEE EXECUTIVE ORDERS NOS. 7046, 7060, AND 7083, DATED MAY 20, JUNE 5, AND JUNE 24, 1935, RESPECTIVELY, OTHERWISE DENOMINATED AS REGULATIONS NOS. 1, 2, AND 3, RESPECTIVELY, ISSUED UNDER THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935. AS TO THE METHODS OF PROSECUTING THE PROJECTS OR PORTIONS OF PROJECTS BY THE USE OF ALLOTTED FUNDS MENTIONED, THERE IS PARTICULARLY FOR NOTING UNDER SECTION 2 OF REGULATION NO. 3, (A) FORCE ACCOUNT, (B) FIXED PRICE CONTRACT, (C) LIMITED FIXED PRICE CONTRACT, AND (D) MANAGEMENT CONTRACT, MORE PARTICULARLY DESCRIBED IN SECTIONS 3, 4, 5, AND 6, RESPECTIVELY, OF SAID REGULATION, AND, ALSO, SECTION 9 OF REGULATION NO. 3, RELATING TO THE PROVISIONS REQUIRED TO BE INCORPORATED IN CONTRACTS.