B-154811, SEP. 7, 1966

B-154811: Sep 7, 1966

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TO THE SECRETARY OF DEFENSE: REFERENCE IS MADE TO OUR PROPOSED DRAFT OF A REPORT TO THE CONGRESS TITLED "UNAUTHORIZED PAYMENTS FOR OCEAN TRANSPORTATION OF PRIVATELY OWNED VEHICLES OF NAVAL PERSONNEL BETWEEN CONTINENTAL UNITED STATES PORTS. 000 WAS PAID BY THE DEPARTMENT OF THE NAVY IN FISCAL YEAR 1964 TO HAVE PRIVATELY OWNED VEHICLES SHIPPED BETWEEN CONTINENTAL UNITED STATES PORTS WHEN THERE WERE CHANGES OF THE HOME YARDS OR HOME PORTS OF NAVAL VESSELS TO WHICH OWNERS OF THE VEHICLES WERE ASSIGNED. OR WHEN SUCH OWNERS WERE ORDERED TO DUTY IN CONNECTION WITH THE BUILDING. WE CONCLUDED AT THAT TIME THAT THIS PRACTICE WAS NOT WITHIN THE SCOPE AND INTENT OF SECTION 2634 OF TITLE 10. THE LAW AS NOW AMENDED AUTHORIZES THE TYPE OF PAYMENTS CITED IN THE REPORT AND THE NAVY HAS CONCLUDED THAT DISCONTINUANCE OF THE PRACTICE IS NOT NOW REQUIRED.

B-154811, SEP. 7, 1966

TO THE SECRETARY OF DEFENSE:

REFERENCE IS MADE TO OUR PROPOSED DRAFT OF A REPORT TO THE CONGRESS TITLED "UNAUTHORIZED PAYMENTS FOR OCEAN TRANSPORTATION OF PRIVATELY OWNED VEHICLES OF NAVAL PERSONNEL BETWEEN CONTINENTAL UNITED STATES PORTS," SUBMITTED TO YOUR DEPARTMENT FOR COMMENT ON JULY 21, 1965. BY LETTER DATED OCTOBER 7, 1965, THE ASSISTANT SECRETARY OF THE NAVY (FINANCIAL MANAGEMENT) FORWARDED TO US THE DEPARTMENT OF THE NAVY RESPONSE TO OUR DRAFT REPORT.

OUR PROPOSED REPORT SHOWED THAT ABOUT $200,000 WAS PAID BY THE DEPARTMENT OF THE NAVY IN FISCAL YEAR 1964 TO HAVE PRIVATELY OWNED VEHICLES SHIPPED BETWEEN CONTINENTAL UNITED STATES PORTS WHEN THERE WERE CHANGES OF THE HOME YARDS OR HOME PORTS OF NAVAL VESSELS TO WHICH OWNERS OF THE VEHICLES WERE ASSIGNED, OR WHEN SUCH OWNERS WERE ORDERED TO DUTY IN CONNECTION WITH THE BUILDING, COMMISSIONING, FITTING OUT, CONVERSION, OR ACTIVATION OF NAVAL VESSELS. WE CONCLUDED AT THAT TIME THAT THIS PRACTICE WAS NOT WITHIN THE SCOPE AND INTENT OF SECTION 2634 OF TITLE 10, UNITED STATES CODE, AND, THEREFORE, SHOULD BE DISCONTINUED.

IN THE INTERIM BETWEEN TRANSMITTAL OF OUR PROPOSED REPORT TO THE DEPARTMENT OF DEFENSE AND RECEIPT OF THE RESPONSE FROM THE ASSISTANT SECRETARY OF THE NAVY, THE ACT OF JULY 30, 1965, PUBLIC LAW 89-101, 79 STAT. 425, COMPLETELY REVISED AND RESTATED SECTION 2634 OF TITLE 10, UNITED STATES CODE. THE LAW AS NOW AMENDED AUTHORIZES THE TYPE OF PAYMENTS CITED IN THE REPORT AND THE NAVY HAS CONCLUDED THAT DISCONTINUANCE OF THE PRACTICE IS NOT NOW REQUIRED.

ACCORDINGLY, UPON CONSIDERATION OF THE COMMENTS OF THE ASSISTANT SECRETARY OF THE NAVY (FINANCIAL MANAGEMENT), AND PARTICULARLY THE AMENDMENT OF THE BASIC STATUTE BY PUBLIC LAW 89-101 OF JULY 30, 1965, WE AGREE THAT NO CHANGE IN THE NAVY'S PROCEDURE IN THIS RESPECT IS REQUIRED AND, THEREFORE, THE PROPOSED REPORT TO THE CONGRESS ON THIS MATTER WILL NOT BE MADE.

A COPY OF THIS LETTER IS BEING SENT TODAY TO THE SECRETARY OF THE NAVY.