B-103177, AUGUST 22, 1951, 31 COMP. GEN. 46

B-103177: Aug 22, 1951

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ARE NOT TO BE CONSIDERED PART OF THE CONTRACT EXPENSE IN PURCHASING SUCH MATERIAL BUT RATHER AS AN INDEPENDENT OBLIGATION ARISING UNDER THE CONTRACT FOR TRANSPORTATION SERVICES. THEREFORE THE EXPENSES FOR SUCH SERVICES ARE CHARGEABLE TO THE APPROPRIATION CURRENTLY AVAILABLE AT THE TIME THE TRANSPORTATION WAS PERFORMED. THE VOUCHER WAS ADMINISTRATIVELY APPROVED FOR PAYMENT CHARGING THE APPROPRIATION "2180905 ENGINEER SERVICE. IT APPEARS THAT CERTAIN QUESTIONS WERE RAISED BY YOUR OFFICE WITH REGARD TO THE PROPRIETY OF CHARGING THE APPROPRIATION DESIGNATED FOR TRANSPORTATION EXPENSES INCURRED DURING THE FISCAL YEAR 1951. 1948" WAS EXTENDED FOR EXPENDITURE THROUGH THE FISCAL YEAR 1951. THAT THE TRANSPORTATION BILL IS PAYABLE SINCE SHIPMENT WAS MADE IN ACCORDANCE WITH ARTICLE II.

B-103177, AUGUST 22, 1951, 31 COMP. GEN. 46

APPROPRIATIONS - FISCAL YEAR CHARGEABLE FOR TRANSPORTATION OF SUPPLIES TRANSPORTATION CHARGES FOR MATERIAL SHIPPED FROM ONE GOVERNMENT INSTALLATION TO ANOTHER, AFTER TITLE TO THE PROPERTY HAS VESTED IN THE UNITED STATES, ARE NOT TO BE CONSIDERED PART OF THE CONTRACT EXPENSE IN PURCHASING SUCH MATERIAL BUT RATHER AS AN INDEPENDENT OBLIGATION ARISING UNDER THE CONTRACT FOR TRANSPORTATION SERVICES, AND THEREFORE THE EXPENSES FOR SUCH SERVICES ARE CHARGEABLE TO THE APPROPRIATION CURRENTLY AVAILABLE AT THE TIME THE TRANSPORTATION WAS PERFORMED.

COMPTROLLER GENERAL WARREN TO LT. COL. S. E. BIGNELL, DEPARTMENT OF THE ARMY, AUGUST 22, 1951:

BY FIRST INDORSEMENT DATED MAY 1, 1951, THE CHIEF OF FINANCE REFERRED TO THIS OFFICE YOUR UNDATED LETTER ENCLOSING BILL NO. G-23590 OF THE ALASKA RAILROAD IN THE AMOUNT OF $556.93, IN WHICH YOU ASK CERTAIN QUESTIONS AS TO THE PROPER APPROPRIATION TO BE CHARGED THEREFOR.

THE BILL IN QUESTION COVERS THE SHIPMENT OF CERTAIN MATERIALS FROM WHITTIER, ALASKA, TO LADD AIR FORCE BASE, ALASKA, UNDER GOVERNMENT BILLS OF LADING NOS. WT-587052 AND WT-5870054 AND FROM WHITTIER TO FORT RICHARDSON, ALASKA, UNDER BILL OF LADING NO. WT-5870058, DURING OCTOBER 1950. THE VOUCHER WAS ADMINISTRATIVELY APPROVED FOR PAYMENT CHARGING THE APPROPRIATION "2180905 ENGINEER SERVICE, ARMY, 1948" AND CITED AS THE AUTHORITY THEREFOR CHANGE 1, SR 35-210-48, DATED SEPTEMBER 14, 1950.

IT APPEARS THAT CERTAIN QUESTIONS WERE RAISED BY YOUR OFFICE WITH REGARD TO THE PROPRIETY OF CHARGING THE APPROPRIATION DESIGNATED FOR TRANSPORTATION EXPENSES INCURRED DURING THE FISCAL YEAR 1951, AND IN RESPONSE THE OFFICE OF THE CHIEF OF ENGINEERS ADVISED THAT THE APPROPRIATION "2180905 ENGINEER SERVICE, ARMY, 1948" WAS EXTENDED FOR EXPENDITURE THROUGH THE FISCAL YEAR 1951, AS AUTHORIZED ON CHANGE 1, SR 35 -210-48, AND THAT THE TRANSPORTATION BILL IS PAYABLE SINCE SHIPMENT WAS MADE IN ACCORDANCE WITH ARTICLE II, PARAGRAPH 7A OF CPFF CONTRACT W 112- ENG-1000 CITED ON THE BILLS OF LADING. HOWEVER, INASMUCH AS THE GENERAL ACCOUNTING OFFICE HAS TAKEN EXCEPTION TO VOUCHERS UNDER SIMILAR CIRCUMSTANCES CITING 16 COMP. GEN. 843 AND 18 ID 91, REQUEST IS MADE FOR DECISION AS TO WHETHER THE CHARGES MAY BE PAID FROM THE APPROPRIATION CITED IN CHANGE 1, SR 35-210-48.

CHANGE 1, SR 35-210-48, APPARENTLY IS BASED UPON THE PROVISION CONTAINED IN THE DEFICIENCY APPROPRIATION ACT, 1950, 64 STAT. 287, UNDER THE APPROPRIATION " ENGINEER SERVICE, ARMY," AS FOLLOWS:

NOT TO EXCEED $3,750,000 OF THE UNEXPENDED BALANCE OF THE APPROPRIATION " ENGINEER SERVICE, ARMY," FISCAL YEAR 1948, SHALL REMAIN AVAILABLE UNTIL JUNE 30, 1951, FOR THE PAYMENT OF OBLIGATIONS INCURRED UNDER CONTRACTS ENTERED INTO THEREUNDER PRIOR TO JULY 1, 1948. THIS PROVISION, WHILE EXTENDING FOR ONE ADDITIONAL YEAR THE PERIOD FOR EXPENDITURE WHICH, UNDER EXISTING LAW, IS TWO FULL FISCAL YEARS AFTER THE END OF THE FISCAL YEAR FOR WHICH APPROPRIATED (31 U.S.C. 713), MAY NOT BE REGARDED AS AUTHORIZING A CHARGE AGAINST SUCH APPROPRIATION OF AN AMOUNT NOT OBLIGATED UNDER A CONTRACT ENTERED INTO PRIOR TO JULY 1, 1948.

AN EXAMINATION OF THE BILLS OF LADING IN THE INSTANT CASE SHOWS THE SHIPPER ON EACH TO BE THE PORT TRANSPORTATION OFFICER, WHITTIER, ALASKA, AND THE CONSIGNEES TO BE THE BASE TRANSPORTATION OFFICERS AT LADD AIR FORCE BASE AND FORT RICHARDSON, ALASKA. THUS, SINCE EACH OF THE SHIPMENTS WAS MADE FROM ONE GOVERNMENT INSTALLATION TO ANOTHER, IT IS APPARENT THAT TITLE TO THE PROPERTY HAD VESTED IN THE UNITED STATES SOME TIME PRIOR TO THE PRESENT TRANSPORTATION. UNDER SUCH CIRCUMSTANCES, THE TRANSPORTATION EXPENSES INVOLVED ARE NOT TO BE REGARDED AS PART OF THE EXPENSES OF THE COST-PLUS-A-FIXED-FEE CONTRACT FOR THE PURCHASE THEREOF SO AS TO PERMIT CONSIDERING SAID CONTRACT AS THE OBLIGATING INSTRUMENT, BUT RATHER SUCH EXPENSES ARE TO BE REGARDED AS AN INDEPENDENT OBLIGATION ARISING FROM THE EXECUTION OF THE CONTRACT FOR TRANSPORTATION SERVICES. FOR THIS REASON THERE WOULD APPEAR TO BE FOR APPLICATION HERE THE RULE SET OUT IN 16 COMP. GEN. 843, AS FOLLOWS:

IT IS THE ESTABLISHED RULE IN REGARD TO THE USE OF FISCAL-YEAR APPROPRIATIONS FOR TRANSPORTATION CHARGES THAT WHERE SUPPLIES ARE PURCHASED F.O.B. PLACE OF MANUFACTURE, AND TRANSPORTATION IS NOT ORDERED OR ACCOMPLISHED UNTIL THE FOLLOWING FISCAL YEAR, THE TRANSPORTATION COSTS ARE NOT CHARGEABLE TO THE APPROPRIATION FOR THE FISCAL YEAR IN WHICH THE SUPPLIES WERE PURCHASED, BUT TO THE APPROPRIATION FOR THE FISCAL YEAR IN WHICH THE TRANSPORTATION WAS PERFORMED--- THE CONTRACT OF TRANSPORTATION BEING SEPARATE FROM THE CONTRACT OF PURCHASE. 22 COMP. DEC. 349; 1 COMP. GEN. 655; ALSO A 44780, OCTOBER 3, 1932. * * *

ACCORDINGLY, YOU ARE ADVISED THAT INASMUCH AS THE TRANSPORTATION SERVICES WERE PERFORMED DURING OCTOBER 1950, THE AMOUNT COVERED BY THE VOUCHER MAY BE CHARGED ONLY TO THE APPROPRIATION FOR THE ENGINEER SERVICE, ARMY, CURRENTLY AVAILABLE FOR OBLIGATION AND EXPENDITURE AT THAT TIME.