B-12219, SEPTEMBER 17, 1940, 20 COMP. GEN. 156

B-12219: Sep 17, 1940

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1940: I HAVE YOUR LETTER OF SEPTEMBER 5. AS FOLLOWS: REFERENCE IS MADE TO THE APPROPRIATION FOR THE CIVILIAN CONSERVATION CORPS IN ACT APPROVED JUNE 26. " IS CONTAINED IN TITLE II OF THE JUNE 26 ACT WHICH TITLE AT THE CLOSE THEREOF CONTAINS A PROVISION THAT SECTION 3709 OF THE REVISED STATUTES SHALL NOT BE CONSTRUED TO APPLY TO ANY PURCHASE WITH FUNDS APPROPRIATED UNDER THIS TITLE WHEN THE AGGREGATE AMOUNT INVOLVED IN SUCH PURCHASE DOES NOT EXCEED THE SUM OF $100. THE TWO PROVISIONS DO NOT APPEAR INCOMPATIBLE SINCE THE EXEMPTION FROM COMPETITION OF ALL PURCHASES IN EXCESS OF $100 IS NOT AFFECTED BY AN INDEPENDENT EXEMPTION IN GREATER AMOUNT APPLYING TO PART OF THE FUNDS. SINCE A CONSIDERABLE AMOUNT OF CIVILIAN CONSERVATION CORPS FUNDS IS ALLOTTED TO THIS DEPARTMENT FOR EXPENDITURE.

B-12219, SEPTEMBER 17, 1940, 20 COMP. GEN. 156

CONTRACTS - OPEN-MARKET PURCHASES - INTERPRETATION OF LIMITATION PROVISIONS WHILE THE FEDERAL SECURITY AGENCY APPROPRIATION ACT, 1941, INCLUDES THE APPROPRIATION FOR THE CIVILIAN CONSERVATION CORPS, THE PROVISION IN SAID ACT PERMITTING PURCHASES OF $100 OR LESS FROM ANY FUNDS APPROPRIATED THEREBY WITHOUT REGARD TO THE REQUIREMENTS OF SECTION 3709, REVISED STATUTES, AS TO ADVERTISING FOR COMPETITIVE BIDS, DOES NOT REPEAL OR OTHERWISE AFFECT THE PROVISION IN SECTION 11 OF THE ACT OF JUNE 27, 1937, PERMITTING PURCHASES OF $300 OR LESS IN CONNECTION WITH THE ACTIVITIES OF THE CIVILIAN CONSERVATION CORPS WITHOUT REGARD TO SECTION 3709, REVISED STATUTES.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE SECRETARY OF AGRICULTURE SEPTEMBER 17, 1940:

I HAVE YOUR LETTER OF SEPTEMBER 5, 1940, AS FOLLOWS:

REFERENCE IS MADE TO THE APPROPRIATION FOR THE CIVILIAN CONSERVATION CORPS IN ACT APPROVED JUNE 26, 1940 ( PUBLIC, NO. 665).

THE CIVILIAN CONSERVATION CORPS APPROPRIATION, STATED AS BEING "FOR ALL AUTHORIZED AND NECESSARY EXPENSES TO CARRY INTO EFFECT THE PROVISIONS OF THE ACT ENTITLED,"AN ACT TO ESTABLISH A CIVILIAN CONSERVATION CORPS, AND FOR OTHER PURPOSES" APPROVED JUNE 28, 1937, AS AMENDED," IS CONTAINED IN TITLE II OF THE JUNE 26 ACT WHICH TITLE AT THE CLOSE THEREOF CONTAINS A PROVISION THAT SECTION 3709 OF THE REVISED STATUTES SHALL NOT BE CONSTRUED TO APPLY TO ANY PURCHASE WITH FUNDS APPROPRIATED UNDER THIS TITLE WHEN THE AGGREGATE AMOUNT INVOLVED IN SUCH PURCHASE DOES NOT EXCEED THE SUM OF $100. SECTION 11 OF THE 1937 ACT ESTABLISHING THE CORPS PROVIDES THAT IN INCURRING EXPENDITURES THE PROVISIONS OF SECTION 3709, REVISED STATUTES, SHALL NOT APPLY TO ANY PURCHASE OR SERVICE WHEN THE AGGREGATE AMOUNT INVOLVED DOES NOT EXCEED THE SUM OF $300.

THERE ARISES THE QUESTION WHETHER THE PROVISION IN THE JUNE 26 ACT THAT SECTION 3709 SHALL NOT APPLY TO PURCHASES WITH FUNDS APPROPRIATED UNDER TITLE II THEREOF WHEN THE AMOUNT DOES NOT EXCEED $100 HAS ANY APPLICATION TO THE CIVILIAN CONSERVATION CORPS APPROPRIATION IN VIEW OF THE FACT THAT SECTION 11 OF THE ACT CREATING THE CORPS PROVIDES THAT IN INCURRING EXPENDITURES SECTION 3709 SHALL NOT APPLY TO ANY PURCHASE OR SERVICE WHEN THE AGGREGATE AMOUNT INVOLVED DOES NOT EXCEED $300. THE TWO PROVISIONS DO NOT APPEAR INCOMPATIBLE SINCE THE EXEMPTION FROM COMPETITION OF ALL PURCHASES IN EXCESS OF $100 IS NOT AFFECTED BY AN INDEPENDENT EXEMPTION IN GREATER AMOUNT APPLYING TO PART OF THE FUNDS.

SINCE A CONSIDERABLE AMOUNT OF CIVILIAN CONSERVATION CORPS FUNDS IS ALLOTTED TO THIS DEPARTMENT FOR EXPENDITURE, I SHOULD APPRECIATE YOUR EARLY DECISION WHETHER THESE FUNDS ARE SUBJECT TO AN OPEN MARKET LIMITATION OF $100, AS PROVIDED IN THE APPROPRIATION ACT, OR OF $300, AS PROVIDED IN THE ACT ESTABLISHING THE CIVILIAN CONSERVATION CORPS.

SECTION 11 OF THE ACT OF JUNE 28, 1937, 50 STAT. 321, ENTITLED "AN ACT TO ESTABLISH A CIVILIAN CONSERVATION CORPS, AND FOR OTHER PURPOSES," PROVIDES:

THE CHIEF OF FINANCE, WAR DEPARTMENT, IS HEREBY DESIGNATED, EMPOWERED, AND DIRECTED, UNTIL OTHERWISE ORDERED BY THE PRESIDENT, TO ACT AS THE FISCAL AGENT OF THE DIRECTOR IN CARRYING OUT THE PROVISIONS OF THIS ACT: PROVIDED, THAT FUNDS ALLOCATED TO GOVERNMENT AGENCIES FOR OBLIGATION UNDER THIS ACT MAY BE EXPENDED IN ACCORDANCE WITH THE LAWS, RULES, AND REGULATIONS GOVERNING THE USUAL WORK OF SUCH AGENCY, EXCEPT AS OTHERWISE STIPULATED IN THIS ACT: PROVIDED FURTHER, THAT IN INCURRING EXPENDITURES, THE PROVISIONS OF SECTION 3709, REVISED STATUTES ( U.S.C., 1934 ED., TITLE 41, SEC. 5), SHALL NOT APPLY TO ANY PURCHASE OR SERVICE WHEN THE AGGREGATE AMOUNT INVOLVED DOES NOT EXCEED THE SUM OF $300.

THE FEDERAL SECURITY AGENCY APPROPRIATION ACT, 1941--- TITLE II OF THE ACT APPROVED JUNE 26, 1940, PUBLIC, NO. 665--- WHICH MAKES APPROPRIATIONS FOR THE CIVILIAN CONSERVATION CORPS AND SEVERAL OTHER AGENCIES, CONTAINS THE FOLLOWING PROVISION:

SECTION 3709 OF THE REVISED STATUTES * * * SHALL NOT BE CONSTRUED TO APPLY TO ANY PURCHASE WITH FUNDS APPROPRIATED UNDER THIS TITLE WHEN THE AGGREGATE AMOUNT INVOLVED IN SUCH PURCHASE DOES NOT EXCEED THE SUM OF $100.

THE FIRST OF THE ABOVE-QUOTED PROVISIONS RELATES TO ALL EXPENDITURES INCURRED UNDER THE ACT OF JUNE 28, 1937, AND IS IN THE NATURE OF PERMANENT LEGISLATION IN EFFECT AMENDING SECTION 3709, REVISED STATUTES, INSOFAR AS SUCH EXPENDITURES ARE CONCERNED. THE SECOND OF SAID PROVISIONS RELATES TO THE APPROPRIATIONS MADE IN THE ACT OF JUNE 26, 1940. IT IS NOT A RESTRICTION ON THE USE OF SAID APPROPRIATIONS BUT EXEMPTS OR EXCEPTS FROM THE PROVISIONS OF SECTION 3709, REVISED STATUTES, ALL PURCHASES UNDER SAID APPROPRIATIONS WHEN THE AGGREGATE AMOUNT INVOLVED IN THE PURCHASE DOES NOT EXCEED THE SUM OF $100. AS ABOVE NOTED THE ACT CONTAINING THIS PROVISION MADE APPROPRIATIONS FOR SEVERAL ESTABLISHMENTS OTHER THAN THE CIVILIAN CONSERVATION CORPS AND IT CONTAINS NOTHING TO INDICATE AN INTENT TO REPEAL OR SUPERSEDE THE SPECIFIC PROVISION IN THE ACT OF JUNE 28, 1937, RELATING TO ALL EXPENDITURES INCURRED IN CARRYING OUT THE PROVISIONS OF SAID ACT; AND THE TWO PROVISIONS ARE NOT IN CONFLICT, THE PERMISSION TO MAKE PURCHASES UP TO $100 WITHOUT ADVERTISING DURING THE FISCAL YEAR 1941 UNDER ANY OF THE APPROPRIATIONS MADE IN SAID ACT OF JUNE 26, 1940, NOT BEING IN CONFLICT WITH THE BROADER PERMANENT EXEMPTION APPLICABLE GENERALLY TO EXPENDITURES IN CONNECTION WITH THE ACTIVITIES OF THE CIVILIAN CONSERVATION CORPS. ALSO, IT IS NOTED THAT THE FIRST PARAGRAPH OF TITLE II OF THE SAID ACT OF JUNE 26, 1940, AUTHORIZES THE FEDERAL SECURITY ADMINISTRATOR TO EMPLOY CERTAIN SERVICES UP TO $2,500 IN AMOUNT WITHOUT REGARD TO SECTION 3709, REVISED STATUTES. MANIFESTLY, THIS PROVISION IS NOT TO BE REGARDED AS NULLIFIED OR AFFECTED BY THE PROVISION APPEARING LATER IN THE SAME ACT RELATIVE TO PROCUREMENT, NOT IN EXCESS OF $100.

ACCORDINGLY, THE PROVISION IN THE FEDERAL SECURITY AGENCY APPROPRIATION ACT, 1941, PERMITTING PURCHASES FROM ANY FUNDS APPROPRIATED UNDER THAT ACT WITHOUT REGARD TO SECTION 3709, REVISED STATUTES, WHEN THE AMOUNT DOES NOT EXCEED $100, DOES NOT REPEAL OR OTHERWISE AFFECT THE PROVISION IN SECTION 11 OF THE ACT OF JUNE 27, 1937, 50 STAT. 321, PERMITTING EXPENDITURES INCURRED IN CONNECTION WITH THE ACTIVITIES OF THE CIVILIAN CONSERVATION CORPS FOR PURCHASES OR SERVICES WITHOUT REGARD TO SECTION 3709, REVISED STATUTES, WHEN THE AMOUNTS THEREOF DO NOT EXCEED $300.