B-175722, JUL 26, 1972

B-175722: Jul 26, 1972

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

AS THERE IS NO PROVISION FOR COMPETITIVE BIDDING PROCEDURES IN GRANTS FOR ALL MODEL CITIES PROGRAMS. AS NO SUCH REQUIREMENT WAS INCLUDED IN THE INSTANT GRANT. TO ECONOMIC OPPORTUNITIES ASSOCIATION: FURTHER REFERENCE IS MADE TO YOUR INQUIRY CONCERNING AN AWARD OF A CONTRACT TO ANOTHER FIRM FOR INSURANCE COVERAGE FOR THE DELEGATE AGENCIES OF THE MODEL CITIES PROGRAM IN LOS ANGELES. ENCLOSED IS A COPY OF A LETTER DATED JULY 3. HUD HAS TAKEN THE POSITION THAT WHILE THE FACTS COVERING THE TRANSACTION IN QUESTION ARE AS STATED BY YOU. THERE IS NO REQUIREMENT FOR INCLUDING COMPETITIVE BIDDING PROCEDURES IN GRANTS FOR ALL MODEL CITIES PROGRAMS. NO SUCH REQUIREMENT WAS INCLUDED IN THE INSTANT GRANT.

B-175722, JUL 26, 1972

MODEL CITIES GRANTS - COMPETITIVE BIDDING NOT REQUIRED CONCERNING AWARD OF A CONTRACT FOR INSURANCE COVERAGE FOR DELEGATE AGENCIES OF THE MODEL CITIES PROGRAM IN LOS ANGELES. AS THERE IS NO PROVISION FOR COMPETITIVE BIDDING PROCEDURES IN GRANTS FOR ALL MODEL CITIES PROGRAMS, AND AS NO SUCH REQUIREMENT WAS INCLUDED IN THE INSTANT GRANT, NO BASIS FOR UPSETTING AWARD OF CONTRACT EXISTS.

TO ECONOMIC OPPORTUNITIES ASSOCIATION:

FURTHER REFERENCE IS MADE TO YOUR INQUIRY CONCERNING AN AWARD OF A CONTRACT TO ANOTHER FIRM FOR INSURANCE COVERAGE FOR THE DELEGATE AGENCIES OF THE MODEL CITIES PROGRAM IN LOS ANGELES.

AS REQUESTED, ENCLOSED IS A COPY OF A LETTER DATED JULY 3, 1972, TOGETHER WITH A COPY OF THE MAY 19 LETTER REFERRED TO THEREIN, FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) RESPONDING TO OUR REQUESTS FOR A REPORT RELATIVE TO THIS MATTER.

HUD HAS TAKEN THE POSITION THAT WHILE THE FACTS COVERING THE TRANSACTION IN QUESTION ARE AS STATED BY YOU, THERE IS NO REQUIREMENT FOR INCLUDING COMPETITIVE BIDDING PROCEDURES IN GRANTS FOR ALL MODEL CITIES PROGRAMS, AND NO SUCH REQUIREMENT WAS INCLUDED IN THE INSTANT GRANT. CONSEQUENTLY, HUD IS OF THE VIEW THAT THERE IS NO BASIS TO AFFORD YOUR FIRM ANY RELIEF.

WE MUST CONCUR WITH THIS CONCLUSION. THE MODEL CITIES PROGRAM WAS ESTABLISHED BY THE DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966, APPROVED NOVEMBER 3, 1966, 80 STAT. 1255 (42 U.S.C. 3301, ET SEQ.) TO PROVIDE FEDERAL FINANCIAL AND TECHNICAL ASSISTANCE TO "PLAN, DEVELOP, AND CARRY OUT LOCALLY PREPARED AND SCHEDULED COMPREHENSIVE CITY DEMONSTRATION PROGRAMS." FUNDS FOR THE MODEL CITIES PROGRAM ARE PROVIDED TO THE LOCAL DEMONSTRATION AGENCIES BY MEANS OF GRANTS WHICH, WHEN PAID OVER AND EXPENDED BY THE STATES, BECOME STATE FUNDS. THERE IS NO STATUTORY REQUIREMENT FOR THE USE OF COMPETITIVE BIDDING PROCEDURES UNDER THE PROGRAM IN QUESTION, AND IN ABSENCE OF A CONDITION OF THE GRANT SPECIFICALLY PRESCRIBED TO THE CONTRARY, THE EXPENDITURE OF SUCH FUNDS BY THE STATE IS NOT SUBJECT TO THE VARIOUS RESTRICTIONS AND REQUIREMENTS IMPOSED BY FEDERAL STATUTE OR OUR DECISIONS WITH RESPECT TO THE EXPENDITURE OF APPROPRIATED FUNDS BY FEDERAL DEPARTMENTS AND ESTABLISHMENTS. 36 COMP. GEN. 221 (1956); 43 COMP. GEN. 697 (1964). ACCORDINGLY, WE SEE NO BASIS TO QUESTION THE LEGALITY OF THE AWARD IN QUESTION.

WE HAVE BEEN ADVISED, HOWEVER, THAT MR. IRVIN ROSENSTEIN, AREA COUNSEL IN THE LOS ANGELES OFFICE OF HUD, WILL BE AVAILABLE TO DISCUSS THIS MATTER WITH YOU AND MAKE AVAILABLE THOSE DOCUMENTS TO WHICH YOU MAY BE ENTITLED UNDER THE FREEDOM OF INFORMATION ACT (5 U.S.C. 552).