B-182653, JAN 16, 1975

B-182653: Jan 16, 1975

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SEC. 1713 (1970) WILL NOT BE CONSIDERED SINCE THERE IS NO JURISDICTION TO DECIDE PROTEST. 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. 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.

B-182653, JAN 16, 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 THERE IS NO JURISDICTION TO DECIDE PROTEST, RESPONSIBILITY BEING LIMITED TO PERFORMING AUDITS PURSUANT TO 31 U.S.C. SEC. 850 (1970).

DEVONNE ARMSTRONG COMPANY:

BY LETTER DATED NOVEMBER 8, 1974, WITH ENCLOSURES, AND SUBSEQUENT CORRESPONDENCE, COUNSEL FOR DEVONNE ARMSTRONG, DBA DEVONNE ARMSTRONG COMPANY PROTESTED AGAINST THE AWARD TO ANOTHER FIRM OF A MANAGEMENT BROKER CONTRACT BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD). 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. 38 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, DECEMBER 26, 1974.

ACCORDINGLY, OUR OFFICE IS WITHOUT JURISDICTION TO DECIDE THE PROTEST AND IT WILL NOT BE CONSIDERED.