B-123988, JUL. 27, 1955

B-123988: Jul 27, 1955

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SMALL BUSINESS ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF MAY 13. IT IS PROPOSED THAT THE COST OF SUCH PROPERTY BE CHARGED TO ADMINISTRATIVE FUNDS AND CREDITED TO THE ADMINISTRATION'S REVOLVING LOAN FUND. YOUR LETTER STATES THAT THE PROPERTY IS NEEDED FOR ADMINISTRATIVE USE. THAT THE AMOUNT WHICH COULD BE REALIZED FROM A SALE OF SUCH PROPERTY IS SUBSTANTIALLY LESS THAN THE COST OF ACQUIRING SIMILAR PROPERTY THROUGH GOVERNMENT PURCHASING CHANNELS. WHICH IT IS UNDERSTOOD WOULD BE DISTRIBUTED TO VARIOUS REGIONAL OFFICES CURRENTLY OCCUPYING SPACE IN BUILDINGS WHICH ARE CONTROLLED AND SERVICED BY THE GENERAL SERVICES ADMINISTRATION. THE DECISIONS OF THIS OFFICE HAVE HELD THAT THE APPROPRIATION OF MONEYS TO THE GENERAL SERVICES ADMINISTRATION FOR EQUIPMENT OR SERVICES IN FEDERALLY-OWNED OR OCCUPIED BUILDINGS UNDER THE CONTROL OF THE AGENCY PRECLUDES EXPENDITURES FOR SUCH PURPOSES FROM THE GENERAL APPROPRIATIONS OF AGENCIES OCCUPYING SUCH BUILDINGS. 34 COMP.

B-123988, JUL. 27, 1955

TO HONORABLE WENDELL B. BARNES, ADMINISTRATOR, SMALL BUSINESS ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF MAY 13, 1955, REQUESTING A DECISION AS TO WHETHER THE SMALL BUSINESS ADMINISTRATION MAY RETAIN, FOR ADMINISTRATIVE PURPOSES, CERTAIN PERSONAL PROPERTY WHICH THE ADMINISTRATION HAS ACQUIRED BY LOAN FORECLOSURE. IT IS PROPOSED THAT THE COST OF SUCH PROPERTY BE CHARGED TO ADMINISTRATIVE FUNDS AND CREDITED TO THE ADMINISTRATION'S REVOLVING LOAN FUND.

IT HAS BEEN INFORMALLY ASCERTAINED THAT THE PROPERTY CONSISTS OF 7 WINDOW AIR-CONDITIONERS AND VARIOUS ITEMS OF OFFICE MACHINES AND EQUIPMENT. YOUR LETTER STATES THAT THE PROPERTY IS NEEDED FOR ADMINISTRATIVE USE, THAT THE AMOUNT WHICH COULD BE REALIZED FROM A SALE OF SUCH PROPERTY IS SUBSTANTIALLY LESS THAN THE COST OF ACQUIRING SIMILAR PROPERTY THROUGH GOVERNMENT PURCHASING CHANNELS, AND THAT THE PROPOSED ACTION WOULD BE IN THE BEST INTERESTS OF THE GOVERNMENT.

WITH RESPECT TO THE PURCHASE OF WINDOW AIR-CONDITIONERS, WHICH IT IS UNDERSTOOD WOULD BE DISTRIBUTED TO VARIOUS REGIONAL OFFICES CURRENTLY OCCUPYING SPACE IN BUILDINGS WHICH ARE CONTROLLED AND SERVICED BY THE GENERAL SERVICES ADMINISTRATION, THE DECISIONS OF THIS OFFICE HAVE HELD THAT THE APPROPRIATION OF MONEYS TO THE GENERAL SERVICES ADMINISTRATION FOR EQUIPMENT OR SERVICES IN FEDERALLY-OWNED OR OCCUPIED BUILDINGS UNDER THE CONTROL OF THE AGENCY PRECLUDES EXPENDITURES FOR SUCH PURPOSES FROM THE GENERAL APPROPRIATIONS OF AGENCIES OCCUPYING SUCH BUILDINGS. 34 COMP. GEN. 42; 23 ID. 749; B 31968; FEBRUARY 24, 1943. ACCORDINGLY, SUCH EQUIPMENT AS IS MADE AVAILABLE BY THE GENERAL SERVICES ADMINISTRATION TO BUILDING OCCUPANTS ON A NON-REIMBURSABLE BASIS (SEE SECTIONS 208.02 AND 208.03, VOLUME GS 6-1, GENERAL SERVICES ADMINISTRATION REAL PROPERTY MANAGEMENT MANUAL), AND FOR WHICH NO SPECIFIC PROVISION WAS MADE IN THE APPROPRIATION OF THE OCCUPYING AGENCY, COULD BE PURCHASED FOR FEDERAL USE ONLY BY THE GENERAL SERVICES ADMINISTRATION.

WITH RESPECT TO SUCH OF THE EQUIPMENT AS IS NOT REQUIRED TO BE FURNISHED BY THE GENERAL SERVICES ADMINISTRATION WITHOUT COST TO FEDERAL AGENCIES WE WOULD NOT OBJECT TO THE TRANSFER OF THE EQUIPMENT AND REIMBURSEMENT OF THE SMALL BUSINESS ADMINISTRATION REVOLVING FUND FROM APPROPRIATIONS PROPERLY AVAILABLE FOR PURCHASES OF SUCH EQUIPMENT. HOWEVER, IT WOULD APPEAR THAT YOUR VALUATION OF SUCH PROPERTY UNDER SECTION 205 (B) (2) OF THE SMALL BUSINESS ACT OF 1953 SHOULD APPROXIMATE AS NEARLY AS POSSIBLE THE ESTIMATED AMOUNT WHICH COULD BE REALIZED BY DISPOSING OF SUCH PROPERTY BY THE MOST ADVANTAGEOUS METHOD AVAILABLE.