B-148562, JUN. 12, 1962

B-148562, JUN. 12, 1962

TO THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO LETTER OF MARCH 30, 1962, FROM THE ASSISTANT SECRETARY FOR REVIEW AND CONSIDERATION OF THE AUDIT ACTION TAKEN WITH RESPECT TO CONTRACTS NOS. AF 04 (612/-2326 AND AF 08 (621/-1342, BOTH EFFECTIVE JULY 1, 1961. THE FORMER CONTRACT WAS ENTERED INTO BETWEEN THE MATHER AIR FORCE BASE AND THE SONIC-TONE MUSIC COMPANY, INC., AND PROVIDED FOR THE RENTAL OF ULTRA-HIGH FREQUENCY RECEIVER AND PRE-AMPLIFIER FOR USE WITH ALTO-FONIC PLAYER IN RECEIVING AND PLAYING PROGRAMMED BACKGROUND MUSIC AT THE 3535TH USAF HOSPITAL AT THE ANNUAL RENTAL RATE OF $238 PER UNIT OR $23,800. THE LATTER CONTRACT WHICH WAS ENTERED INTO BETWEEN THE HOMESTEAD AIR FORCE BASE AND MELODY, INC., PROVIDED FOR THE FURNISHING OF PRE-SELECTED MUSIC BY WIRE TO THE BASE DENTAL CLINIC AT THE RATE OF $30 PER UNIT, OR AN ANNUAL RENTAL OF $360.

BY LETTERS DATED AUGUST 16 AND SEPTEMBER 12, 1961, OUR AUDITORS REQUESTED THE COMMANDER, AIR FORCE ACCOUNTING AND FINANCE CENTER AT DENVER, COLORADO, TO CANCEL CONTRACTS NOS. AF 04 (612/-2326 AND AF 08 (612/-1342, RESPECTIVELY, IN ACCORDANCE WITH AN AGREEMENT SET FORTH IN THE COMMANDER'S LETTER OF DECEMBER 7, 1959, SUBJECT: "CONTRACTS FOR INCENTIVE MUSIC" AND PARAGRAPH 1-362, AIR FORCE PROCUREMENT INSTRUCTIONS, DATED JULY 24, 1961. BY LETTER DATED FEBRUARY 13, 1962, HEADQUARTERS, AIR FORCE ACCOUNTING AND FINANCE CENTER, DENVER, COLORADO, REFERRED TO OUR AUDITOR'S LETTERS OF AUGUST 16, AND SEPTEMBER 12, 1961, AND JANUARY 19, 1962, CONCERNING THE INVOLVED CONTRACTS AND OTHER CONTRACTS FOR INCENTIVE MUSIC AND REPORTED THAT THE MATTER WAS BEING REFERRED HERE FOR DECISION.

AS INDICATED IN THE LETTER OF MARCH 30, 1962, THE AUDIT ACTION IN THE MATTER STEMS FROM OUR DECISION OF NOVEMBER 8, 1950, B-86148, WHEREIN IT WAS HELD IN EFFECT THAT THERE EXISTS NO GENERAL AUTHORITY FOR EXPENDITURES FOR INCENTIVE TYPE MUSIC IN THE ABSENCE OF SPECIFIC LEGISLATIVE AUTHORIZATION THEREFOR. AS FURTHER INDICATED THE CITED DECISION CONCERNED INCENTIVE TYPE MUSIC BEING FURNISHED UNDER CONTRACTS TO THREE NAVY INSTALLATIONS FOR THE INDICATED PURPOSE OF SAVING PUBLIC FUNDS BY INCREASING PRODUCTION THROUGH REDUCTION OF WORK FATIGUE AND WORK INTERRUPTIONS.

THE DECISION OF NOVEMBER 8, 1950, WAS IMPLEMENTED BY AIR FORCE PROCUREMENT INSTRUCTION NO. 1-362, AS FOLLOWS:

"INDUSTRIAL TYPE MUSIC. CONTRACTS FOR INDUSTRIAL (INCENTIVE) TYPE MUSIC ARE UNAUTHORIZED SINCE THERE EXISTS NO GENERAL AUTHORITY FOR EXPENDITURES OF THIS TYPE IN THE ABSENCE OF MORE SPECIFIC LEGISLATIVE AUTHORIZATION THEREFORE (MS COMP. GEN. B86148, NOV. 8, 1950). CONTRACTING OFFICERS WILL RETURN PURCHASE REQUESTS FOR INDUSTRIAL TYPE MUSIC TO THE INITIATOR WITH THE ADVICE THAT CONTRACTS FOR SUCH MUSIC ARE UNAUTHORIZED.'

IN REQUESTING REVIEW OF THE AUDIT ACTION ON THE TWO INVOLVED CONTRACTS IT IS POINTED OUT THAT FUNDS APPROPRIATED IN THE "DEPARTMENT OF DEFENSE APPROPRIATION ACT, 1962" BY PUBLIC LAW 87-144, APPROVED AUGUST 17, 1961, PROVIDE FOR EXPENSES FOR "CHAPLAIN AND OTHER WELFARE AND MORALE SUPPLIES AND EQUIPMENT; CONDUCT OF SCHOOLROOMS, SERVICE CLUBS, CHAPELS, AND OTHER INSTRUCTIONAL ENTERTAINMENT, AND WELFARE EXPENSES FOR ENLISTED MEN AND PATIENTS NOT OTHERWISE PROVIDED FOR.'

IT IS STATED THAT THE EQUIPMENT AND THE MUSIC FURNISHED UNDER THE SUBJECT CONTRACTS ARE FOR THE PURPOSE OF PROVIDING MUSIC TO PATIENTS IN AN AIR FORCE HOSPITAL AND AN AIR FORCE DENTAL CLINIC IN ORDER TO ASSIST THE PATIENTS IN A MORE RAPID RECOVERY. IT IS FURTHER STATED THAT ON THE BASIS OF THE AUTHORITY OF THE AIR FORCE TO EXPEND OPERATION AND MAINTENANCE FUNDS FOR WELFARE ACTIVITIES AND MEDICAL AND DENTAL CARE, THE AIR FORCE HAS PROVIDED IN AIR FORCE MANUAL 67-1, VOL. V, CHAP. 5, PARAGRAPH 10, THAT PROPERTY SUCH AS TELEVISION SETS, MAY BE PURCHASED FOR THE WELFARE OF PATIENTS AND THAT IT IS UNDER THIS AUTHORITY THAT THE SUBJECT CONTRACTS WERE EXECUTED.

IN VIEW OF THE FOREGOING WE AGREE THAT CONTRACTS NUMBERED AF 04 (612/- 2326 AND AF 08 (621/-1342 AND SIMILAR CONTRACTS DO NOT FALL WITHIN THE PROHIBITION OF THE DECISION OF NOVEMBER 8, 1950, B-86148. THEREFORE, THE AUDIT INSTRUCTIONS CONCERNING THESE TWO CONTRACTS MAY BE DISREGARDED.