B-181550, JAN 6, 1975

B-181550: Jan 6, 1975

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SEC. 1713 (1970) WILL NOT BE CONSIDERED. THIS AREA MANAGEMENT BROKER CONTRACT WAS AWARDED TO THE LOWEST RESPONSIVE. THE FOLLOWING TWO PARAGRAPHS FROM THE ABOVE CITED DECISION ARE PERTINENT: "UNDER 12 U.S.C. IT WAS TRANSFERRED IN 1965 TO THE SECRETARY OF HUD BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ACT. FHA'S AUTHORITY IS SIMILAR IN EFFECT TO THE EXTRAORDINARY AUTHORITY TO DETERMINE AND PRESCRIBE OBLIGATIONS FOUND IN MANY GOVERNMENT CORPORATION CHARTERS. ALTHOUGH FHA IS NOT SPECIFICALLY CHARTERED AS A CORPORATION. FOR THE PURPOSE OF THE GOVERNMENT CORPORATION CONTROL ACT IT IS DEFINED IN 31 U.S.C. "THE RESPONSIBILITY OF OUR OFFICE UNDER THE ACT IS LIMITED TO PERFORMING AN AUDIT IN ACCORDANCE WITH THE PRINCIPLES AND PROCEDURES APPLICABLE TO COMMERCIAL TRANSACTIONS (31 U.S.C.

B-181550, JAN 6, 1975

PROTEST AGAINST HUD'S AWARD OF PROPERTY MANAGEMENT BROKER CONTRACT AUTHORIZED BY 12 U.S.C. SEC. 1713 (1970) WILL NOT BE CONSIDERED, SINCE THIS OFFICE HAS NO JURISDICTION TO DECIDE PROTEST, RESPONSIBILITY BEING LIMITED TO PERFORMING AUDITS PURSUANT TO 31 U.S.C. SEC. 850 (1970).

LEON P. BROOKS REAL ESTATE COMPANY:

BY LETTER DATED JUNE 15, 1974, MR. LEON P. BROOKS OF LEON P. BROOKS REAL ESTATE COMPANY PROTESTED THE AWARD OF DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) CONTRACT NO. 121-74-1601. THE SUBJECT CONTRACT RESULTED FROM HUD INVITATION FOR BIDS (IFB) NO. 406-74-121, ISSUED APRIL 26, 1974. THE IFB CALLED FOR BIDS FOR THE MANAGEMENT OF CERTAIN HUD ACQUIRED RESIDENTIAL PROPERTIES IN NORTHERN ALAMEDA COUNTY, CALIFORNIA. THIS AREA MANAGEMENT BROKER CONTRACT WAS AWARDED TO THE LOWEST RESPONSIVE, RESPONSIBLE BIDDER ON MAY 16, 1974.

IN A RECENT DECISION, MATTER OF FRANK E. MELCHIORRE, B-178507, DECEMBER 26, 1974, THIS OFFICE CONSIDERED A VERY SIMILAR PROTEST. THE FOLLOWING TWO PARAGRAPHS FROM THE ABOVE CITED DECISION ARE PERTINENT:

"UNDER 12 U.S.C. SEC. 1713(1) (1970), THE SECRETARY OF HUD HAS THE POWER TO MAKE CONTRACTS FOR THE MANAGEMENT OF PROPERTY ACQUIRED BY HIM, NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW RELATING TO THE ACQUISITION, HANDLING, OR DISPOSAL OF REAL AND OTHER PROPERTY BY THE UNITED STATES. FURTHER, 12 U.S.C. SEC. 1702 (1970), AUTHORIZES THE SECRETARY (1) TO MAKE SUCH EXPENDITURES AS NECESSARY TO CARRY OUT THE PROVISIONS OF SEC. 1713 WITHOUT REGARD TO ANY OTHER PROVISIONS OF LAW GOVERNING THE EXPENDITURES OF PUBLIC FUNDS AND (2) TO SUE AND BE SUED IN ANY COURT OF COMPETENT JURISDICTION. WHILE THIS AUTHORITY FORMERLY RESIDED IN THE COMMISSIONER OF THE FEDERAL HOUSING ADMINISTRATION, IT WAS TRANSFERRED IN 1965 TO THE SECRETARY OF HUD BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ACT, PUBLIC LAW 89-174, SEC. 5(A), 79 STAT. 669, 42 U.S.C. SEC. 3534 (1970). FHA'S AUTHORITY IS SIMILAR IN EFFECT TO THE EXTRAORDINARY AUTHORITY TO DETERMINE AND PRESCRIBE OBLIGATIONS FOUND IN MANY GOVERNMENT CORPORATION CHARTERS. ALTHOUGH FHA IS NOT SPECIFICALLY CHARTERED AS A CORPORATION, FOR THE PURPOSE OF THE GOVERNMENT CORPORATION CONTROL ACT IT IS DEFINED IN 31 U.S.C. SEC. 846 (1970) AS A WHOLLY OWNED GOVERNMENT CORPORATION. COMP. GEN. 343, 344 (1958).

"THE RESPONSIBILITY OF OUR OFFICE UNDER THE ACT IS LIMITED TO PERFORMING AN AUDIT IN ACCORDANCE WITH THE PRINCIPLES AND PROCEDURES APPLICABLE TO COMMERCIAL TRANSACTIONS (31 U.S.C. SEC. 850 (1970)) AND THE ACT REQUIRES THAT A REPORT OF THE AUDIT FINDINGS BE PRESENTED TO THE CONGRESS. U.S.C. SEC. 851 (1970). CONSEQUENTLY, HUD IS NOT REQUIRED AS A MATTER OF LAW TO FOLLOW OUR DECISIONS INTERPRETING THE LEGALITY OF ITS ACTIONS IN AWARDING A PROPERTY MANAGEMENT BROKER CONTRACT. MATTER OF FRANK E. MELCHIORRE, B-181961, B-182280, NOVEMBER 26, 1974."

BASED ON THE ABOVE, OUR OFFICE IS WITHOUT JURISDICTION TO DECIDE THE PRESENT PROTEST AND IT WILL NOT BE CONSIDERED.