B-129443, OCT. 17, 1956

B-129443: Oct 17, 1956

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PUBLIC PRINTER: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 5. IS RELUCTANT TO ACCEPT ORDERS FROM THE SANDIA CORPORATION SINCE THEY FEEL THAT THE GOVERNMENT PRINTING OFFICE WILL NOT RECOGNIZE THE POWER OF ATTORNEY. " THERE IS ALSO FOR CONSIDERATION THE CASE OF KERN-LIMERICK. YOU ARE ADVISED THAT IN OUR OPINION YOUR AGENCY PROPERLY COULD RECOGNIZE A VALID POWER OF ATTORNEY GRANTED TO A GOVERNMENT COST CONTRACTOR BY THE ATOMIC ENERGY COMMISSION SUFFICIENTLY BROAD IN TERMS TO COVER THE PROCUREMENT INVOLVED. IT WILL BE NOTED THAT THE POWER OF ATTORNEY ENCLOSED WITH YOUR LETTER IS SPECIFICALLY RESTRICTED TO PROCUREMENTS UNDER CONTRACTS EXECUTED BY THE BUREAU OF FEDERAL SUPPLY AND THE ARMED SERVICES PETROLEUM PURCHASING AGENCY.

B-129443, OCT. 17, 1956

TO THE HONORABLE RAYMOND BLATTENBERGER, PUBLIC PRINTER:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 5, 1956, REQUESTING A DECISION AS TO WHETHER OR NOT ATOMIC ENERGY COMMISSION COST CONTRACTORS MAY PLACE ORDERS UNDER GOVERNMENT PRINTING OFFICE TERM CONTRACT FOR MARGINALLY PUNCHED CONTINUOUS FORMS.

YOUR LETTER SETS FORTH THAT THE SANDIA CORPORATION, ALBUQUERQUE, NEW MEXICO, HAS ATTEMPTED TO PLACE ORDERS FOR MARGINALLY PUNCHED CONTINUOUS FORMS WITH MOORE BUSINESS FORMS, INC., ONE OF THE SUPPLIERS UNDER YOUR CONTRACT; THAT THE SANDIA CORPORATION HAS FURNISHED TO MOORE BUSINESS FORMS, INC., A COPY OF POWER OF ATTORNEY GRANTED MR. K. S. SPOON, PURCHASING AGENT, SANDIA CORPORATION, TO USE ON BEHALF OF THE U.S. ATOMIC ENERGY COMMISSION; AND THAT MOORE BUSINESS FORMS, INC., IS RELUCTANT TO ACCEPT ORDERS FROM THE SANDIA CORPORATION SINCE THEY FEEL THAT THE GOVERNMENT PRINTING OFFICE WILL NOT RECOGNIZE THE POWER OF ATTORNEY.

YOU REFER TO THE CASE OF CARSON V. ROANE-ANDERSON COMPANY, 342 U.S. 232, AS BEING SOMEWHAT SIMILAR IN SUBJECT. IN ADDITION TO THAT CASE, IN WHICH THE SUPREME COURT HELD THAT THE ACTIVITIES OF THE ATOMIC ENERGY COMMISSION MAY BE PERFORMED BY IT DIRECTLY OR THROUGH "THE AGENCIES OF PRIVATE ENTERPRISE," THERE IS ALSO FOR CONSIDERATION THE CASE OF KERN-LIMERICK, INC. V. SCURLOCK, 347 U.S. 110, WHEREIN, AT PAGE 116, THE SUPREME COURT CONCLUDED THAT IN THE ABSENCE OF A SPECIFIC STATUTORY RESTRICTION PRECLUDING SUCH A RESULT--- "* * * THE NAVY DEPARTMENT HAS POWER TO NEGOTIATE CONTRACTS WHICH PROVIDE FOR PRIVATE PURCHASING AGENTS FOR SUPPLIES AND MATERIALS.'

IN THE CIRCUMSTANCES, AND SINCE THE ATOMIC ENERGY ACT OF 1946, AS AMENDED, CONTAINS NO PROHIBITION AGAINST THE DELEGATION OF AUTHORITY TO GOVERNMENT CONTRACTORS TO MAKE PURCHASES AS AGENTS OF THE GOVERNMENT, YOU ARE ADVISED THAT IN OUR OPINION YOUR AGENCY PROPERLY COULD RECOGNIZE A VALID POWER OF ATTORNEY GRANTED TO A GOVERNMENT COST CONTRACTOR BY THE ATOMIC ENERGY COMMISSION SUFFICIENTLY BROAD IN TERMS TO COVER THE PROCUREMENT INVOLVED. IN THAT CONNECTION, IT WILL BE NOTED THAT THE POWER OF ATTORNEY ENCLOSED WITH YOUR LETTER IS SPECIFICALLY RESTRICTED TO PROCUREMENTS UNDER CONTRACTS EXECUTED BY THE BUREAU OF FEDERAL SUPPLY AND THE ARMED SERVICES PETROLEUM PURCHASING AGENCY, AND FROM THE FEDERAL PRISON INDUSTRIES, INC.

IN ACCORDANCE WITH YOUR REQUEST, THE PAPERS ACCOMPANYING YOUR LETTER ARE RETURNED HEREWITH.