A-67697, JANUARY 2, 1936, 15 COMP. GEN. 579

A-67697: Jan 2, 1936

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"SHALL BE TAKEN FOR A PERIOD OF 2 YEARS" HAVE APPLICATION GENERALLY TO PRIVATE USERS AND NOT TO THE UNITED STATES. PARTICULARLY WHERE THE FEDERAL AGENCY INVOLVED IS OF THE EMERGENCY TYPE FOR RELIEF OF UNEMPLOYMENT AND NECESSARILY OF INDEFINITE DURATION. THERE IS NO OBJECTION TO THE INCLUSION OF SAID CLAUSE IF THE SERVICE CANNOT BE OBTAINED ECONOMICALLY IN ANY CASE. 1936: THERE WAS RECEIVED A LETTER DATED NOVEMBER 8. AS FOLLOWS: THERE IS FORWARDED HEREWITH CONTRACT COVERING TELEPHONE SERVICE INSTALLED IN THE NEW OFFICES OF THE ACTING STATE DIRECTOR. ATTENTION IS CALLED TO THE FOLLOWING PROVISION INCLUDED IN THE CONTRACT: "TERMINATION LIABILITY OF $4.54 PER MONTH FOR EACH MONTH EQUIPMENT IS IN SERVICE LESS THAN 24 MONTHS.'.

A-67697, JANUARY 2, 1936, 15 COMP. GEN. 579

TELEPHONE SERVICE - TERMINATION LIABILITY CHARGE TELEPHONE RATE SCHEDULES PROVIDING THAT APPLICATIONS FOR CORDLESS PRIVATE BRANCH SWITCHBOARDS, ETC., "SHALL BE TAKEN FOR A PERIOD OF 2 YEARS" HAVE APPLICATION GENERALLY TO PRIVATE USERS AND NOT TO THE UNITED STATES, PARTICULARLY WHERE THE FEDERAL AGENCY INVOLVED IS OF THE EMERGENCY TYPE FOR RELIEF OF UNEMPLOYMENT AND NECESSARILY OF INDEFINITE DURATION, AND EVERY ADMINISTRATIVE EFFORT SHOULD BE MADE TO SECURE THE NECESSARY SERVICE WITHOUT THE INCLUSION IN THE CONTRACT OF THE TERMINATION LIABILITY CLAUSE, BUT THERE IS NO OBJECTION TO THE INCLUSION OF SAID CLAUSE IF THE SERVICE CANNOT BE OBTAINED ECONOMICALLY IN ANY CASE.

COMPTROLLER GENERAL MCCARL TO THE ADMINISTRATOR, FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS, JANUARY 2, 1936:

THERE WAS RECEIVED A LETTER DATED NOVEMBER 8, 1935, FROM THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS, ITS FILE ADMIN-GWC, AS FOLLOWS:

THERE IS FORWARDED HEREWITH CONTRACT COVERING TELEPHONE SERVICE INSTALLED IN THE NEW OFFICES OF THE ACTING STATE DIRECTOR, 312 EAST WISCONSIN AVENUE, MILWAUKEE, WISCONSIN.

ATTENTION IS CALLED TO THE FOLLOWING PROVISION INCLUDED IN THE CONTRACT:

"TERMINATION LIABILITY OF $4.54 PER MONTH FOR EACH MONTH EQUIPMENT IS IN SERVICE LESS THAN 24 MONTHS.'

IN EXPLANATION OF THIS PROVISION THERE IS ATTACHED LETTER DATED NOVEMBER 5, 1935, FROM THE ACTING STATE DIRECTOR, SCHEDULE OF RATES OF THE WISCONSIN TELEPHONE COMPANY, AND AFFIDAVIT SIGNED BY THE GENERAL COMMERCIAL SUPERINTENDENT.

THE EXPENSE WILL BE PAYABLE FROM APPROPRIATION 03/7644, NATIONAL INDUSTRIAL RECOVERY, FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS 1933 -1937.

IT IS REQUESTED THAT THE PAPERS BE RETURNED TO THIS OFFICE WITH ADVICE AS TO WHETHER OR NOT A CONTRACT CONTAINING THE PROVISION REFERRED TO MAY BE PROPERLY AUTHORIZED AND APPROVED.

THE ACTING STATE DIRECTOR IN THE REFERRED-TO LETTER OF NOVEMBER 5, 1935, INCLOSED A CERTIFIED COPY OF THE WISCONSIN TELEPHONE COMPANY'S RATE SCHEDULE FOR SERVICE IN MILWAUKEE, WIS., WITH THE STATEMENT THAT THIS SCHEDULE "APPARENTLY FULLY AUTHORIZES THE TERMINATION LIABILITY CHARGE INCORPORATED IN THIS CONTRACT.' THE RATE SCHEDULE REFERRED TO PROVIDED (P. 7) THAT APPLICATIONS FOR CORDLESS PRIVATE BRANCH SWITCHBOARDS AND POWER AND GENERATOR CIRCUITS USED IN CONNECTION THEREWITH "SHALL BE TAKEN FOR A PERIOD OF 2 YEARS," BUT IT APPEARS OBVIOUS THAT SUCH RATE SCHEDULE HAS APPLICATION GENERALLY TO PRIVATE USERS OF TELEPHONES IN MILWAUKEE AND NOT TO THE UNITED STATES. THIS IS PARTICULARLY TRUE WHERE THE FEDERAL AGENCY INVOLVED IS AN EMERGENCY AGENCY ESTABLISHED PRIMARILY FOR THE RELIEF OF UNEMPLOYMENT, WITH NO CERTAINTY AS TO THE LENGTH OF TIME SUCH EMERGENCY AGENCIES OF THE FEDERAL GOVERNMENT WILL CONTINUE TO FUNCTION. EVERY ADMINISTRATIVE EFFORT SHOULD BE MADE TO SECURE THE NECESSARY TELEPHONE, ETC., SERVICE FOR STATE AGENCIES OF THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS WITHOUT THE INCLUSION OF A TERMINATION LIABILITY CHARGE, AS QUOTED IN THE ABOVE LETTER OF NOVEMBER 8, 1935, AND AS TYPED ON THE FACE OF THE CONTRACT OF OCTOBER 8, 1935, FOR THIS SERVICE. THERE HAS NOT BEEN OVERLOOKED THE STATEMENT IN THE LETTER OF OCTOBER 22, 1935, TO THE ACTING STATE DIRECTOR OF WISCONSIN THAT SWITCHBOARD SERVICE HAD BEEN INSTALLED IN MOST OF THE OFFICES OF THE PUBLIC WORKS ADMINISTRATION THROUGHOUT THE UNITED STATES AND THAT THIS WAS THE FIRST CONTRACT RECEIVED INCLUDING THE LIABILITY FOR TERMINATION OF THE SERVICE.

HOWEVER, IF THE SERVICE CANNOT BE OBTAINED ECONOMICALLY IN ANY CASE WITHOUT THE INCLUSION OF A TERMINATION LIABILITY CHARGE, THIS OFFICE IS NOT REQUIRED TO OBJECT THERETO, AS THE TERMINATION LIABILITY CHARGE SIMPLY RESULTS IN CORRESPONDINGLY INCREASING THE MONTHLY RATE FOR THE PERIOD THE EQUIPMENT WAS IN USE BY THE GOVERNMENT BEFORE THE CONTRACT WAS TERMINATED.