B-183686, MAY 5, 1975

B-183686: May 5, 1975

Additional Materials:

Contact:

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

 

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

GAO IS PRECLUDED FROM RENDERING AUTHORITATIVE DECISION ON PROTEST FILED AGAINST PROCUREMENT CONDUCTED ON BEHALF OF NONAPPROPRIATED FUND ACTIVITY. SINCE BID PROTEST JURISDICTION IS BASED ON ACCOUNT SETTLEMENT AUTHORITY UNDER 31 U.S.C. 71 AND 74 AND GENERAL ACCOUNTING OFFICE ACT OF 1974 PROVIDES GAO WITH AUDIT BUT NOT SETTLEMENT AUTHORITY OVER NONAPPROPRIATED FUND ACTIVITIES. WE ARE INFORMED THAT THE PROCUREMENT. AS FOLLOWS: "*** WE HAVE PREVIOUSLY HELD THAT THIS OFFICE IS WITHOUT AUTHORITY TO RENDER AUTHORITATIVE DECISIONS WITH RESPECT TO PROCUREMENTS CONDUCTED BY OR ON BEHALF OF NONAPPROPRIATED FUND ACTIVITIES. ALTHOUGH RECENTLY THIS OFFICE WAS AUTHORIZED TO REVIEW AND AUDIT THE OPERATIONS AND FUNDS OF CERTAIN NONAPPROPRIATED FUND ACTIVITIES.

B-183686, MAY 5, 1975

GAO IS PRECLUDED FROM RENDERING AUTHORITATIVE DECISION ON PROTEST FILED AGAINST PROCUREMENT CONDUCTED ON BEHALF OF NONAPPROPRIATED FUND ACTIVITY, SINCE BID PROTEST JURISDICTION IS BASED ON ACCOUNT SETTLEMENT AUTHORITY UNDER 31 U.S.C. 71 AND 74 AND GENERAL ACCOUNTING OFFICE ACT OF 1974 PROVIDES GAO WITH AUDIT BUT NOT SETTLEMENT AUTHORITY OVER NONAPPROPRIATED FUND ACTIVITIES.

RELCO, INC.:

RELCO, INCORPORATED, HAS PROTESTED AWARD OF A CONTRACT TO ANOTHER BIDDER UNDER INVITATION FOR BIDS (IFB) NO. DAKF48-75-B-ICS-0008, ISSUED BY THE PROCUREMENT DIVISION, FT. HOOD, TEXAS.

WE ARE INFORMED THAT THE PROCUREMENT, CALLING FOR THE INSTALLATION OF CERTAIN DISPENSING EQUIPMENT IN THE FT. HOOD OFFICER'S CLUB, DOES NOT INVOLVE THE EXPENDITURE OF APPROPRIATED FUNDS. WITH RESPECT TO OUR CONSIDERATION OF PROTESTS INVOLVING NONAPPROPRIATED FUNDS, WE STATED IN MATTER OF ACS CONSTRUCTION COMPANY, INC., B-183034, APRIL 18, 1975, AS FOLLOWS:

"*** WE HAVE PREVIOUSLY HELD THAT THIS OFFICE IS WITHOUT AUTHORITY TO RENDER AUTHORITATIVE DECISIONS WITH RESPECT TO PROCUREMENTS CONDUCTED BY OR ON BEHALF OF NONAPPROPRIATED FUND ACTIVITIES. B 181469, JULY 9, 1974; B-179854, OCTOBER 29, 1973; B-178786, JULY 16, 1973; B-171417, DECEMBER 17, 1970. ALTHOUGH RECENTLY THIS OFFICE WAS AUTHORIZED TO REVIEW AND AUDIT THE OPERATIONS AND FUNDS OF CERTAIN NONAPPROPRIATED FUND ACTIVITIES, SEE SECTION 301 OF THE GENERAL ACCOUNTING OFFICE ACT OF 1974, PUBLIC LAW 93-604, APPROVED JANUARY 2, 1975, OUR BID PROTEST JURISDICTION IS BASED ON OUR AUTHORITY TO ADJUST AND SETTLE ACCOUNTS AND TO CERTIFY BALANCES IN THE ACCOUNTS OF ACCOUNTABLE OFFICERS UNDER 31 U.S.C. 71, 74 (1970). WHEELABRATOR CORP. V. CHAFEE, 455 F. 2D 1306, 1313 (D.C. CIR. 1971); 46 COMP. GEN. 441 (1966); B-167782, JANUARY 21, 1970. WHERE WE DO NOT HAVE SUCH SETTLEMENT AUTHORITY, WE HAVE DECLINED TO CONSIDER PROTESTS ON THE GROUNDS THAT WE COULD NOT RENDER AN AUTHORITATIVE DECISION ON THE MATTER. SEE B-181469, SUPRA (INVOLVING A DOD NONAPPROPRIATED FUND ACTIVITY); B- 180725, MARCH 12, 1974 (INVOLVING THE TVA); B-179310, OCTOBER 10, 1973 (INVOLVING THE GOVERNMENT OF PUERTO RICO); B-181961, B 182280, NOVEMBER 26, 1974 (INVOLVING A GOVERNMENT CORPORATION); AND B 172323 (VARIOUS DATES) (INVOLVING THE POSTAL SERVICE)."

SINCE WE DO NOT HAVE SETTLEMENT AUTHORITY OVER NONAPPROPRIATED FUND ACTIVITIES, THIS OFFICE IS UNABLE TO RENDER AN AUTHORITATIVE DECISION ON THE PROTEST. HOWEVER, THE CORRESPONDENCE FROM THE PROTESTER WILL BE RETAINED FOR CONSIDERATION IN AUDIT PURSUANT TO SECTION 301 OF PUBLIC LAW 93-604.