B-119096, JUNE 1, 1954, 33 COMP. GEN. 577

B-119096: Jun 1, 1954

Additional Materials:

Contact:

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

 

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

WHO MADE A MERITORIOUS SUGGESTION WHICH RESULTED IN SAVINGS TO LATTER AGENCY IS REGARDED AS AN EMPLOYEE OF THE DEPARTMENT TO WHICH DETAILED FOR THE PURPOSE OF QUALIFYING FOR A CASH AWARD UNDER EXECUTIVE ORDER NO. 9817 AND SECTION 14 OF ACT OF AUGUST 2. WHICH PROVIDE FOR PAYMENT OF CASH AWARDS TO CIVILIAN OFFICERS AND EMPLOYEES FOR MERITORIOUS SUGGESTIONS THAT WILL RESULT IN SAVINGS TO THE DEPARTMENTS. RELATE PRIMARILY TO SUPERVISORS AND EMPLOYEES WITHIN THE DEPARTMENT AND THEREFORE ARE NOT APPLICABLE TO AN EMPLOYEE WHO. 1954: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 26. MADE A MERITORIOUS SUGGESTION WHICH WILL RESULT IN APPROXIMATE SAVINGS TO YOUR DEPARTMENT OF $36. IT IS STATED IN YOUR LETTER THAT AN INSPECTOR OF THE CIVIL AERONAUTICS BOARD.

B-119096, JUNE 1, 1954, 33 COMP. GEN. 577

AWARDS - SUGGESTIONS, INVENTIONS, ETC. - COMPENSATION INCREASES FOR SUPERIOR ACCOMPLISHMENTS - DETAILED EMPLOYEES EMPLOYEE DETAILED FROM ONE AGENCY TO ANOTHER, WITH CONTROL OF EMPLOYEE FOR OPERATIONAL PURPOSES VESTED IN AGENCY TO WHICH DETAILED, WHO MADE A MERITORIOUS SUGGESTION WHICH RESULTED IN SAVINGS TO LATTER AGENCY IS REGARDED AS AN EMPLOYEE OF THE DEPARTMENT TO WHICH DETAILED FOR THE PURPOSE OF QUALIFYING FOR A CASH AWARD UNDER EXECUTIVE ORDER NO. 9817 AND SECTION 14 OF ACT OF AUGUST 2, 1946, WHICH PROVIDE FOR PAYMENT OF CASH AWARDS TO CIVILIAN OFFICERS AND EMPLOYEES FOR MERITORIOUS SUGGESTIONS THAT WILL RESULT IN SAVINGS TO THE DEPARTMENTS. THE PROVISIONS OF SECTION 1002 OF TITLE X OF THE CLASSIFICATION ACT OF 1949, WHICH AUTHORIZE AN INCREASE IN BASIC COMPENSATION TO EMPLOYEES FOR SUPERIOR ACCOMPLISHMENTS, RELATE PRIMARILY TO SUPERVISORS AND EMPLOYEES WITHIN THE DEPARTMENT AND THEREFORE ARE NOT APPLICABLE TO AN EMPLOYEE WHO, WHILE IN DETAIL TO ANOTHER AGENCY, MADE A MERITORIOUS SUGGESTION WHICH RESULTED IN SAVINGS TO THE AGENCY TO WHICH DETAILED.

ACTING COMPTROLLER GENERAL WEITZEL TO THE SECRETARY OF COMMERCE, JUNE 1, 1954:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 26, 1954, REQUESTING A DECISION AS TO WHETHER, UNDER SECTION 14 OF THE ACT OF AUGUST 2, 1946, 60 STAT. 809, 5 U.S.C. 116 (A), OR SECTION 1002 OF TITLE X OF THE ACT OF OCTOBER 28, 1949, 63 STAT. 971, 5 U.S.C. 1152, AND IMPLEMENTING REGULATIONS, YOUR DEPARTMENT MAY MAKE AN AWARD TO AN EMPLOYEE OF ANOTHER AGENCY WHO, WHILE ON DETAIL TO YOUR DEPARTMENT, MADE A MERITORIOUS SUGGESTION WHICH WILL RESULT IN APPROXIMATE SAVINGS TO YOUR DEPARTMENT OF $36,000 ANNUALLY.

IT IS STATED IN YOUR LETTER THAT AN INSPECTOR OF THE CIVIL AERONAUTICS BOARD, AN INDEPENDENT AGENCY, WAS DETAILED, UNDER AN INTER AGENCY AGREEMENT, TO THE CIVIL AERONAUTICS ADMINISTRATION, ONE OF THE AGENCIES WITHIN YOUR DEPARTMENT; THAT, UNTIL SUCH DETAIL WAS CONCLUDED ON DECEMBER 14, 1953, THE INSPECTOR WAS PAID BY THE CIVIL AERONAUTICS BOARD BUT WORKED COMPLETELY UNDER CIVIL AERONAUTICS ADMINISTRATION SUPERVISION, USED LEAVE WITH THE APPROVAL OF CIVIL AERONAUTICS ADMINISTRATION SUPERVISORS, AND RECEIVED HIS EFFICIENCY RATING FROM SAID SUPERVISORS. DURING SUCH DETAIL, THE SUGGESTION WAS MADE AND ADOPTED FOR THE IMPROVEMENT OF THE HEATING SYSTEM IN DC-3 TYPE AIRCRAFT WHICH WILL RESULT IN THE SAVINGS TO YOUR DEPARTMENT. HOWEVER, FOR OTHER REASONS, IT IS STATED THAT NO SAVINGS WILL ACCRUE TO THE CIVIL AERONAUTICS BOARD.

SECTION 14 OF THE ACT OF AUGUST 2, 1946, 60 STAT. 809, 5 U.S.C. 116A, PROVIDES, IN PERTINENT PART, AS FOLLOWS:

THE HEAD OF EACH DEPARTMENT IS AUTHORIZED, UNDER SUCH RULES AND REGULATIONS AS THE PRESIDENT MAY PRESCRIBE, TO PAY CASH AWARDS TO CIVILIAN OFFICERS AND EMPLOYEES (OR TO THEIR ESTATES) WHO MAKE MERITORIOUS SUGGESTIONS WHICH WILL RESULT IN IMPROVEMENT OR ECONOMY IN THE OPERATIONS OF HIS DEPARTMENT AND WHICH HAVE BEEN ADOPTED FOR USE AND TO INCUR NECESSARY EXPENSES FOR THE HONORARY RECOGNITION OF EXCEPTIONAL OR MERITORIOUS SERVICE: * * * PAYMENTS MAY BE MADE FROM THE APPROPRIATION FOR THE ACTIVITY PRIMARILY BENEFITING OR MAY BE DISTRIBUTED AMONG APPROPRIATIONS FOR ACTIVITIES BENEFITING AS THE HEAD OF THE DEPARTMENT DETERMINES. * * *

EXECUTIVE ORDER NO. 9817, DATED DECEMBER 31, 1946, AND ISSUED PURSUANT TO SECTION 14, REFERS TO AWARDS TO "ANY CIVILIAN OFFICER OR EMPLOYEE OF A DEPARTMENT WHO MAKES A SUGGESTION IN SUCH FORM AND MANNER AS HIS DEPARTMENT SHALL REQUIRE" ( ITALICS SUPPLIED).

THUS IT APPEARS THAT A CASH AWARD UNDER SECTION 14 TO THE EMPLOYEE HERE INVOLVED WOULD BE AUTHORIZED IF THE CIVIL AERONAUTICS ADMINISTRATION, THE AGENCY TO WHICH HE IS DETAILED, MAY BE REGARDED AS "HIS DEPARTMENT" WITHIN THE MEANING OF THAT LANGUAGE AS USED IN EXECUTIVE ORDER NO. 9817.

GENERALLY, AN EMPLOYEE ON LOAN OR DETAIL TO ANOTHER FEDERAL AGENCY REMAINS AN EMPLOYEE OF THE FIRST OR LOANING AGENCY INSOFAR AS DETERMINING HIS STATUS FOR MATTERS OF A PERSONNEL OR ADMINISTRATIVE NATURE SUCH AS SALARY RATE, LEAVE AND RETIREMENT. 24 COMP. GEN. 420. HOWEVER, THE CONTROL OF SUCH AN EMPLOYEE FOR OPERATIONAL PURPOSES IS VESTED IN THE AGENCY TO WHICH THE EMPLOYEE IS LOANED AND THAT AGENCY DETERMINES HIS WORK ASSIGNMENTS, HIS WORKING HOURS, WHEN HIS LEAVE MAY BE TAKEN AND PREPARES HIS EFFICIENCY RATING. ACCORDINGLY, THERE IS PERCEIVED NO VALID REASON FOR NOT CONSIDERING DETAILED EMPLOYEES AS EMPLOYEES OF THE DEPARTMENT TO WHICH DETAILED FOR PURPOSES OF QUALIFYING FOR CASH AWARDS FOR MERITORIOUS SUGGESTIONS UNDER EXECUTIVE ORDER NO. 9817 AND SECTION 14 OF THE ACT OF AUGUST 2, 1946. TO BE SPECIFIC, YOU ARE ADVISED THAT THE CASH AWARD TO THE EMPLOYEE UNDER SECTION 14 OF THE ACT OF AUGUST 2, 1946, AND EXECUTIVE ORDER NO. 9817, WOULD BE AUTHORIZED.

REFERRING TO SECTION 1002 OF TITLE X OF THE CLASSIFICATION ACT OF 1949, IT MAY BE STATED THAT SUCH PROVISION PRIMARILY RELATES TO SUPERVISORS AND EMPLOYEES "WITHIN THE DEPARTMENT" WHOSE SUPERIOR ACCOMPLISHMENTS HAVE CONTRIBUTED TO EFFICIENCY AND ECONOMY IN THE ADMINISTRATION OF THEIR PARTICULAR UNITS OR GROUPS. WHILE IT IS CONCEDED THERE IS SOME OVERLAPPING BETWEEN SECTION 14 OF THE ACT OF AUGUST 2, 1946, AND TITLE X, NEVERTHELESS, SECTION 1002 OF TITLE X PROVIDES THAT A DEPARTMENT MAY EITHER MAKE A CASH AWARD OR AUTHORIZE AN INCREASE IN AN EMPLOYEE'S BASIC COMPENSATION FOR SUPERIOR ACCOMPLISHMENT. OBVIOUSLY, IF A DEPARTMENT TO WHICH AN EMPLOYEE IS DETAILED FOR A SHORT PERIOD OF TIME COULD AUTHORIZE AN INCREASE IN THE EMPLOYEE'S BASIC COMPENSATION IN LIEU OF AN OUTRIGHT CASH AWARD, IT WOULD HAVE THE EFFECT OF SHIFTING THE BULK OF THE PAYMENT TO THE LOANING AGENCY UPON TERMINATION OF THE EMPLOYEE'S DETAIL OR ELSE RESULT IN THE CANCELLATION OF THE INCREASE BY SUCH LOANING AGENCY. FOR THESE REASONS IT MUST BE HELD THAT AN AWARD MAY NOT BE MADE UNDER TITLE X BY AN AGENCY TO WHICH AN EMPLOYEE IS DETAILED UNDER CIRCUMSTANCES SUCH AS INVOLVED IN THE CASE HEREIN.