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B-171321, MAR 9, 1971, 50 COMP GEN 610

B-171321 Mar 09, 1971
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EVEN THOUGH THE COST OF USING THE HOTEL FACILITIES ARE INCLUDED IN THE CATERING CHARGES. AS THE COST OF THE SPACE IS MERELY A COST ITEM INCLUDED BY THE HOTEL IN FIXING CATERING CHARGES AND THE RENTAL OF SPACE PER SE IS NOT INVOLVED. 1971: THIS IS IN REPLY TO YOUR INQUIRY OF NOVEMBER 17. THE SERVICES OF THE HOTEL WERE OBTAINED INCIDENT TO A SCIENCE AND EDUCATIONAL TRAINING CONFERENCE ON PROFESSIONAL GROWTH AND DEVELOPMENT CONDUCTED BY THE AGRICULTURAL RESEARCH SERVICE PURSUANT TO THE GOVERNMENT EMPLOYEES TRAINING ACT. THE SERVICES WERE PROVIDED ON THE BASIS OF A PURCHASE ORDER. THE FURNISHING OF SUBSISTENCE INCIDENT TO THE CONDUCT OF A TRAINING PROGRAM UNDER THE GOVERNMENT EMPLOYEES TRAINING ACT HAS BEEN RECOGNIZED AS A PROPER ADMINISTRATIVE EXPENSE WHERE IT IS DETERMINED THAT THE PROVIDING OF MEALS.

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B-171321, MAR 9, 1971, 50 COMP GEN 610

OFFICERS AND EMPLOYEES - TRAINING - EXPENSES - MEALS AND ROOM AT HEADQUARTERS THE COST OF CATERING SERVICES FURNISHED BY A HOTEL LOCATED IN THE DISTRICT OF COLUMBIA TO A CONFERENCE HELD PURSUANT TO THE GOVERNMENT EMPLOYEES TRAINING ACT, 5 U.S.C., CHAPTER 41, AND CONSIDERED A PROPER ADMINISTRATIVE EXPENSE WHEN NECESSARY TO ACHIEVE THE OBJECTIVES OF A TRAINING PROGRAM, MAY BE PAID, THE PROHIBITION IN 40 U.S.C. 34 REGARDING THE PROCUREMENT OF HOTEL ROOM ACCOMMODATIONS IN THE DISTRICT OF COLUMBIA IN THE ABSENCE OF AN EXPRESS APPROPRIATION FOR THE RENTAL OF SPACE FOR GOVERNMENT USE IN THE DISTRICT HAVING NO APPLICATION, EVEN THOUGH THE COST OF USING THE HOTEL FACILITIES ARE INCLUDED IN THE CATERING CHARGES, AS THE COST OF THE SPACE IS MERELY A COST ITEM INCLUDED BY THE HOTEL IN FIXING CATERING CHARGES AND THE RENTAL OF SPACE PER SE IS NOT INVOLVED.

TO FLOYD F. TERRANOVA, UNITED STATES DEPARTMENT OF AGRICULTURE, MARCH 9, 1971:

THIS IS IN REPLY TO YOUR INQUIRY OF NOVEMBER 17, 1970, WHETHER YOU MAY CERTIFY FOR PAYMENT A BILL IN THE AMOUNT OF $8,427.02 FROM THE WASHINGTON HILTON, A HOTEL LOCATED IN THE CITY OF WASHINGTON, DISTRICT OF COLUMBIA, FOR CATERING SERVICES RENDERED THE AGRICULTURAL RESEARCH SERVICE, U.S. DEPARTMENT OF AGRICULTURE.

THE SERVICES OF THE HOTEL WERE OBTAINED INCIDENT TO A SCIENCE AND EDUCATIONAL TRAINING CONFERENCE ON PROFESSIONAL GROWTH AND DEVELOPMENT CONDUCTED BY THE AGRICULTURAL RESEARCH SERVICE PURSUANT TO THE GOVERNMENT EMPLOYEES TRAINING ACT, NOW CODIFIED IN CHAPTER 41 OF TITLE 5, UNITED STATES CODE. THE HOTEL, AS REFLECTED BY THE BILL AND SUPPORTING DOCUMENTS, CATERED FIVE LUNCHEONS AND THREE DINNERS AND RENDERED OTHER RELATED AND INCIDENTAL SERVICES FOR THE CONFERENCE. THE SERVICES WERE PROVIDED ON THE BASIS OF A PURCHASE ORDER, NO. RB-7862 ARS-71, OCTOBER 9, 1970, WHICH CALLED FOR CATERING SERVICES (LUNCHEONS, DINNERS, AND COFFEE BREAKS) FOR 180 PEOPLE DURING THE PERIOD OCTOBER 12 THROUGH OCTOBER 16, 1970, AT THE STIPULATED PRICE OF $9,155.30 FOR THE JOB. IT APPEARS THAT LESS THAN 180 PERSONS ATTENDED THE CONFERENCE, A FACT REFLECTED IN THE AMOUNT OF THE BILL.

THE FURNISHING OF SUBSISTENCE INCIDENT TO THE CONDUCT OF A TRAINING PROGRAM UNDER THE GOVERNMENT EMPLOYEES TRAINING ACT HAS BEEN RECOGNIZED AS A PROPER ADMINISTRATIVE EXPENSE WHERE IT IS DETERMINED THAT THE PROVIDING OF MEALS, EVEN THOUGH AN EMPLOYEE IS NOT IN A TRAVEL STATUS, IS NECESSARY TO ACHIEVE THE OBJECTIVES OF THE TRAINING PROGRAM. SEE 39 COMP. GEN. 119 (1959); B-165242, OCTOBER 3, 1968.

HEREIN THE JUSTIFICATION FOR THE PROCUREMENT OF THE CATERING SERVICES IS EXPLAINED AS FOLLOWS:

*** IN ORDER TO ACHIEVE THE GOALS OF THE S & E TRAINING CONFERENCE ON PROFESSIONAL GROWTH AND DEVELOPMENT, IT WAS NECESSARY TO ESTABLISH AND MAINTAIN SEVERAL CONDITIONS. ONE OF THE MOST IMPORTANT OF THESE CONDITIONS WAS THE ESTABLISHMENT OF AN ENVIRONMENT WHICH REQUIRED, STIMULATED, AND FOSTERED COMMUNICATION AMONG PARTICIPANTS AND HELPED THEM IDENTIFY WITH EACH OTHER.

IN ORDER TO DEVELOP THIS COMMUNICATION AND SENSE OF IDENTITY, THE CONFERENCE WAS STRUCTURED SO THAT PARTICIPANTS WOULD INTERACT AS OFTEN AS POSSIBLE. A MINIMUM OF "FREE TIME" WAS STRUCTURED INTO THE AGENDA. THE INTERCHANGE AFFORDED DURING MEALS WAS AN IMPORTANT AND NECESSARY ELEMENT IN THE DESIGN OF THE CONFERENCE. THESE MEALS WERE TO PROMOTE A NATURAL MIXING OF CONFERENCE PARTICIPANTS IN AN INFORMAL ENVIRONMENT. THE AMOUNT OF TIME AVAILABLE FOR MEALS HAD TO BE KEPT TO A MINIMUM SO THAT THE AGENDA WOULD PROCEED AS SCHEDULED. THIS NEED FOR TIME REQUIRED THAT PARTICIPANTS DINE TOGETHER. IN ADDITION, THE MEALS WERE ALSO WORKING SESSIONS. IT WAS PLANNED THAT PARTICIPANTS WOULD DISCUSS THEIR PROBLEM ASSIGNMENTS DURING MEALS, AND FOR THOSE SESSIONS WHERE SPEAKERS WERE SCHEDULED, INTERACT WITH THE SPEAKERS AND EACH OTHER. FOR THESE REASONS IT WAS DETERMINED NOT TO BE FEASIBLE TO EXCUSE CONFERENCE PARTICIPANTS FOR MEALS OUTSIDE OF THE TRAINING ENVIRONMENT, BUT IN THE BEST INTEREST OF THE GOVERNMENT TO HAVE THE REQUIRED MEALS CATERED. THE REQUIREMENT CONSISTED OF FURNISHING ALL SERVICES ATTENDANT TO CATERING THE CONFERENCE, I.E., MATERIALS SUCH AS TABLES, CHAIRS, CHINA, SILVER AND FOOD TO SERVE 180 PEOPLE FOR FIVE LUNCHEONS, THREE DINNERS AND FIVE COFFEE BREAKS. AS PROVIDED BY SECTION 10 OF THE GOVERNMENT EMPLOYEES' TRAINING ACT, PUBLIC LAW 85-507, APPROPRIATED FUNDS MAY BE USED TO COVER THE NECESSARY EXPENSES INCLUDING MEALS OF EMPLOYEES IN TRAINING. (REFERENCE 39 CG 119) *** .

THAT THE TRAINING SESSION WAS HELD IN THE DISTRICT OF COLUMBIA GAVE RISE TO DOUBT OF THE PROPRIETY OF CERTIFYING THIS CLAIM FOR PAYMENT. CONNECTION THEREWITH YOU REFER TO A SENTENCE IN A DECISION OF THIS OFFICE INVOLVING A TRAINING PROGRAM CONDUCTED IN THE DISTRICT OF COLUMBIA, 49 COMP. GEN. 305 (1969). THEREIN, AS QUOTED IN YOUR LETTER, IT WAS STATED:

*** CONCERNING THE PROCURING OF HOTEL SERVICE AND FACILITIES AND FURNISHING THEM, IN KIND, TO PARTICIPANT TRAINEES WHO ARE IN A TRAVEL STATUS, WE SEE NO LEGAL OBJECTION TO SUCH PROCEDURE PROVIDED THE ACCOMMODATIONS ARE NOT SITUATED IN THE DISTRICT OF COLUMBIA AND THAT THE PROCEDURE IS ADMINISTRATIVELY DETERMINED TO BE AN APPROPRIATE MEANS OF INCURRING NECESSARY TRAINING EXPENSES.

THE QUOTED STATEMENT, PARTICULARLY REGARDING THE DISTRICT OF COLUMBIA, HAD REFERENCE TO THE PROCUREMENT OF HOTEL ROOM ACCOMMODATIONS. IT WAS PREDICATED ON 40 U.S.C. 34, PROHIBITING IN THE ABSENCE OF AN EXPRESS APPROPRIATION THEREFOR THE RENTAL OF SPACE FOR GOVERNMENT USE IN THE DISTRICT OF COLUMBIA. THIS IS ABUNDANTLY CLEAR FROM A SUBSEQUENT STATEMENT IN THE DECISION WITH REFERENCE TO STATUTORY AUTHORITY FOR THE TRAINING OF MILITARY PERSONNEL:

*** IN VIEW OF SUCH AUTHORITIES THE PROCUREMENT OF AND THE FURNISHING OF ROOMS TO MILITARY PERSONNEL - PROVIDED IT IS NOT SPACE RENTED IN THE DISTRICT OF COLUMBIA - WOULD BE AUTHORIZED IF NECESSARY FOR FULL PARTICIPATION IN THE TRAINING AND REIMBURSEMENT THEREFOR FROM AVAILABLE MILITARY APPROPRIATIONS WOULD BE PROPER.

UNDOUBTEDLY THERE IS INCLUDED IN THE CATERING (MEAL) CHARGES OF THE WASHINGTON HILTON THE COST OF SPACE, I.E., THE COST OF USING THE HOTEL FACILITIES. HOWEVER, THE INCLUSION OF THE COST OF SPACE - AMONG OTHER COSTS - BY THE HOTEL IN FIXING ITS NORMAL CATERING OR MEAL CHARGES DOES NOT REQUIRE THE CONCLUSION - AT LEAST IN THIS CASE - THAT THE RENTAL OF SPACE IS INVOLVED, SINCE THE COST OF SPACE WOULD BE MERELY ONE OF THE COST ITEMS INCLUDED BY THE HOTEL IN FIXING ITS CATERING CHARGES. WE THEREFORE DO NOT CONSIDER THE PRESENT SITUATION WITHIN THE PURVIEW OF 40 U.S.C. 34. THAT BEING SO AND AS IT IS ADMINISTRATIVELY EXPLAINED THAT BECAUSE OF THE UNIQUE OBJECTIVES OF THE TRAINING CONFERENCE GOVERNMENT FACILITIES WERE NOT ADEQUATE FOR THE PURPOSE, AND OF THE VARIOUS COMMERCIAL FACILITIES IN THE GREATER WASHINGTON AREA - WHERE IT WAS CONSIDERED DESIRABLE TO HOLD THE CONFERENCE - ONLY THE WASHINGTON HILTON HOTEL COULD ACCOMMODATE A GROUP OF 180 PEOPLE DURING THE REQUIRED PERIOD OF OCTOBER 12 THROUGH OCTOBER 16, WE PERCEIVE NO SUBSTANTIAL LEGAL BASIS FOR WITHHOLDING PAYMENT ON THIS CLAIM.

ACCORDINGLY, YOU ARE ADVISED THAT YOU MAY PROPERLY CERTIFY FOR PAYMENT THE SUM OF $8,427.02 CLAIMED.

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