B-171418, DEC. 17, 1970

B-171418: Dec 17, 1970

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THE NAVY EXCHANGE IS OPERATED WITH NONAPPROPRIATED FUNDS AND IS THEREFORE. TO JAMS LAUNDRY AND DRY CLEANERS: THIS IS IN REPLY TO YOUR TELEFAX OF NOVEMBER 30 AND LETTER OF DECEMBER 2. THE RULES AND PROCEDURES GOVERNING PROCUREMENTS CONDUCTED BY THE MILITARY DEPARTMENTS ARE DERIVED FROM PROCUREMENT STATUTES AND REGULATIONS WHICH APPLY ONLY TO PURCHASES OR SERVICES FOR WHICH PAYMENTS ARE TO BE MADE FROM APPROPRIATED FUNDS. THAT IS. ALTHOUGH THE EXCHANGE IS AN INSTRUMENTALITY OF THE GOVERNMENT. IT IS OPERATED WITH NONAPPROPRIATED FUNDS. ITS ACTIVITIES ARE NOT SUBJECT TO AUDIT BY THE GENERAL ACCOUNTING OFFICE. THE DEPARTMENT OF THE NAVY HAS ADVISED THAT THE PROCUREMENT WHICH IS THE SUBJECT OF YOUR PROTEST WILL NOT INVOLVE PAYMENTS FROM APPROPRIATED FUNDS.

B-171418, DEC. 17, 1970

BID PROTEST - PAYMENTS FROM UNAPPROPRIATED FUNDS DENIAL OF PROTEST OF JAMS LAUNDRY AND DRY CLEANERS AGAINST THE AWARD OF A CONTRACT FOR LAUNDRY AND DRY CLEANING TO LITTLE CREEK AMPHIBIOUS BASE LAUNDRY BY NAVY EXCHANGE, NAVAL AIR STATION, NORFOLK, VA. THE NAVY EXCHANGE IS OPERATED WITH NONAPPROPRIATED FUNDS AND IS THEREFORE, NOT SUBJECT TO PROCUREMENT STATUTES.

TO JAMS LAUNDRY AND DRY CLEANERS:

THIS IS IN REPLY TO YOUR TELEFAX OF NOVEMBER 30 AND LETTER OF DECEMBER 2, 1970, PROTESTING THE AWARD OF A LAUNDRY AND DRY CLEANING CONTRACT TO THE LITTLE CREEK AMPHIBIOUS BASE LAUNDRY AND DRY CLEANING FACILITY BY THE NAVY EXCHANGE, NAVAL AIR STATION, NORFOLK, VIRGINIA.

THE RULES AND PROCEDURES GOVERNING PROCUREMENTS CONDUCTED BY THE MILITARY DEPARTMENTS ARE DERIVED FROM PROCUREMENT STATUTES AND REGULATIONS WHICH APPLY ONLY TO PURCHASES OR SERVICES FOR WHICH PAYMENTS ARE TO BE MADE FROM APPROPRIATED FUNDS, THAT IS, MONEY WHICH CONGRESS HAS DESIGNATED FOR GOVERNMENTAL EXPENDITURE. SEE 10 U.S.C. 2303(A). ALTHOUGH THE EXCHANGE IS AN INSTRUMENTALITY OF THE GOVERNMENT, IT IS OPERATED WITH NONAPPROPRIATED FUNDS. SEE ARMED SERVICES EXCHANGE REGULATIONS, DEPARTMENT OF DEFENSE DIRECTIVE 1330.9. MOREOVER, ITS ACTIVITIES ARE NOT SUBJECT TO AUDIT BY THE GENERAL ACCOUNTING OFFICE. B-161296, MAY 23, 1970.

THE DEPARTMENT OF THE NAVY HAS ADVISED THAT THE PROCUREMENT WHICH IS THE SUBJECT OF YOUR PROTEST WILL NOT INVOLVE PAYMENTS FROM APPROPRIATED FUNDS. WE THEREFORE HAVE NO JURISDICTION TO RENDER AN AUTHORITATIVE DECISION ON YOUR PROTEST, AND IT WOULD NOT APPEAR THAT WE ARE IN A POSITION TO BE OF ANY FURTHER ASSISTANCE TO YOU IN THIS MATTER.