B-4462, JULY 7, 1939, 19 COMP. GEN. 16

B-4462: Jul 7, 1939

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DISTRICT OF COLUMBIA - CENTRAL HEATING PLANT STEAM MAIN EXTENSION - JOINT PROCUREMENT WITH FEDERAL GOVERNMENT IF IT IS ADMINISTRATIVELY DETERMINED THE PROPOSED EXTENSION OF STEAM MAINS FROM THE CENTRAL HEATING PLANT IS PRIMARILY REQUISITE FOR THE SERVICE OF FEDERAL BUILDINGS EXISTING OR TO BE CONSTRUCTED. THERE IS NO OBJECTION TO THE ADVANCING OF THE DISTRICT OF COLUMBIA FUNDS FOR THAT PURPOSE. EVEN THOUGH THE DISTRICT OF COLUMBIA IS NOT A " FEDERAL AGENCY" WITHIN THE MEANING OF THE ACT OF JUNE 25. AUTHORIZING FEDERAL AGENCIES TO HAVE "BUILDINGS FOR GOVERNMENTAL PURPOSES" CONSTRUCTED BY THE SAID DEPARTMENT. 000 AND IT IS THE DESIRE OF THE COMMISSIONERS IN THIS CONNECTION TO CONTRIBUTE $25.

B-4462, JULY 7, 1939, 19 COMP. GEN. 16

DISTRICT OF COLUMBIA - CENTRAL HEATING PLANT STEAM MAIN EXTENSION - JOINT PROCUREMENT WITH FEDERAL GOVERNMENT IF IT IS ADMINISTRATIVELY DETERMINED THE PROPOSED EXTENSION OF STEAM MAINS FROM THE CENTRAL HEATING PLANT IS PRIMARILY REQUISITE FOR THE SERVICE OF FEDERAL BUILDINGS EXISTING OR TO BE CONSTRUCTED, AND NOT PRIMARILY FOR THE PURPOSE OF EXTENDING SERVICE TO NEW DISTRICT OF COLUMBIA BUILDINGS, AND THAT CONSTRUCTION FOR SUCH PURPOSES WOULD BE WARRANTED AT THIS TIME APPLICABLE FEDERAL FUNDS MAY BE CONSIDERED AVAILABLE FOR SUCH PURPOSE UNDER AN ARRANGEMENT WHEREBY THE DISTRICT OF COLUMBIA CONTRIBUTES ITS FAIR SHARE TO THE OVERALL COST OF CONSTRUCTING THE EXTENSION, IN LIEU OF, AND NOT TO EXCEED THE COST OF, CONSTRUCTING ITS OWN LINE TO CONNECT WITH THE EXISTING MAIN AS REQUIRED BY THE ACT OF JUNE 21, 1939, PUBLIC, NO. 148, 53 STAT. 852, AND THERE IS NO OBJECTION TO THE ADVANCING OF THE DISTRICT OF COLUMBIA FUNDS FOR THAT PURPOSE, OR THE PROCUREMENT OF THE WORK THROUGH THE PROCUREMENT DIVISION, TREASURY DEPARTMENT, EVEN THOUGH THE DISTRICT OF COLUMBIA IS NOT A " FEDERAL AGENCY" WITHIN THE MEANING OF THE ACT OF JUNE 25, 1910, 36 STAT. 699, AS AMENDED, AUTHORIZING FEDERAL AGENCIES TO HAVE "BUILDINGS FOR GOVERNMENTAL PURPOSES" CONSTRUCTED BY THE SAID DEPARTMENT, BUT THE PUBLIC BUILDINGS BRANCH OF THE PROCUREMENT DIVISION HAVING BEEN TRANSFERRED BY CONGRESSIONALLY APPROVED GOVERNMENT REORGANIZATION TO THE PUBLIC BUILDINGS ADMINISTRATION IN THE FEDERAL WORKS AGENCY, FURTHER ADMINISTRATIVE MATTERS IN CONNECTION WITH THE PROPOSED EXTENSION WOULD BE SUBJECT TO THE APPROVAL AND DIRECTION OF THE FEDERAL WORKS ADMINISTRATOR.

COMPTROLLER GENERAL BROWN TO THE PRESIDENT, BOARD OF COMMISSIONERS, DISTRICT OF COLUMBIA, JULY 7, 1939:

CONSIDERATION HAS BEEN GIVEN THE MATTER SUBMITTED IN YOUR LETTER OF JUNE 15, 1939, AS FOLLOWS:

THE COMMISSIONERS OF THE DISTRICT OF COLUMBIA DESIRE TO SUBMIT FOR YOUR EARLY CONSIDERATION AND ADVICE THE FOLLOWING:

PURSUANT TO THE PROVISIONS OF THE DISTRICT OF COLUMBIA LOAN ACT, APPROVED JUNE 25, 1938, THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS HAS APPROVED A PROJECT KNOWN AS DOCKET NO. 1018-1-F, MUNICIPAL CENTER BUILDING, AT A COST OF $5,700,000 AND IT IS THE DESIRE OF THE COMMISSIONERS IN THIS CONNECTION TO CONTRIBUTE $25,000 TOWARDS THE COST OF CONSTRUCTING A STEAM TUNNEL IN D STREET, TO A POINT 780 FEET EAST, WHERE A CONNECTION CAN BE MADE WITH THE ADMINISTRATION BUILDING, A 10-INCH LINE TO BE INSTALLED IN SAID TUNNEL TO CONNECT TO THE BUILDING. THE PUBLIC WORKS ADMINISTRATION HAS ADVISED THE COMMISSIONERS THAT THERE WOULD BE NO OBJECTION TO THE USE OF $25,000 OF THE FUNDS ALLOTTED FOR THIS PROJECT, PROVIDED ARRANGEMENTS CAN BE MADE BY FORMAL AGREEMENT OR OTHERWISE WITH THE PROPER AGENCY AS COMPENSATION OR FEE, AS THE DISTRICT'S CONTRIBUTION. ORIGINALLY IT WAS ESTIMATED THAT A TEMPORARY LINE WOULD BE CONNECTED WITH THE ADMINISTRATION BUILDING AT AN ESTIMATED COST OF $25,000, BUT THAT IT WOULD BE TO THE MUTUAL INTEREST OF THE UNITED STATES AND THE DISTRICT IF THE FUNDS WERE COMBINED TO COVER THE COST OF CONSTRUCTING A TUNNEL AND PLACING THE STEAM LINE WITHIN SAID TUNNEL TO SERVE NOT ONLY THE DISTRICT BUT OTHER DISTRICT AND FEDERAL BUILDINGS TO BE LOCATED WITHIN THIS IMMEDIATE VICINITY. THIS MATTER HAS BEEN CONSIDERED VERY FULLY BY THE COMMISSIONERS, THE DIRECTOR OF THE NATIONAL PARK SERVICE, AND THE SECRETARY OF THE INTERIOR, AND IT IS FELT THAT THIS IS THE MOST ECONOMICAL METHOD OF CONSTRUCTION TO SERVE THIS AREA.

THERE IS NOW PENDING S. 1795, TO AUTHORIZE THE FURNISHING OF STEAM FROM THE CENTRAL HEATING PLANT TO THE DISTRICT OF COLUMBIA WHICH IT IS UNDERSTOOD HAS BEEN APPROVED BY CONGRESS AND IS AWAITING THE SIGNATURE OF THE PRESIDENT. A SIMILAR ACT AUTHORIZING THE FURNISHING OF STEAM TO SUCH BUILDING AS MAY BE ERECTED BY THE DISTRICT ON THE PROPERTY KNOWN AS JUDICIARY SQUARE WAS APPROVED APRIL 27, 1937, PUBLIC 53, 75 CONGRESS.

BY LETTER DATED JUNE 5, 1939, ADDRESSED TO W. E. REYNOLDS, ASSISTANT DIRECTOR, BRANCH OF PUBLIC BUILDINGS, PROCUREMENT DIVISION, IT IS INDICATED THAT CONDITIONAL APPROVAL WAS GIVEN BY THE PUBLIC WORKS ADMINISTRATION TO THE NATIONAL PARK SERVICE TO UTILIZE $58,000 FOR CONSTRUCTING THE STEAM TUNNEL TO CONNECT WITH THE DISTRICT OF COLUMBIA BUILDING WITH THE UNDERSTANDING THAT THE DISTRICT GOVERNMENT WOULD SUPPLY AN ADDITIONAL $25,000. IN THIS LETTER, IT WAS ALSO INDICATED THAT:

"THE SERVICE DESIRES THE PROCUREMENT DIVISION TO MAKE NECESSARY SURVEYS, PREPARE THE PLANS AND SPECIFICATIONS, TAKE BIDS, AND AWARD THE CONTRACT AND SUPERVISE THE INSTALLATION OF THIS WORK.

"THE NATIONAL PARK SERVICE WILL REIMBURSE THE PROCUREMENT DIVISION TO THE EXTENT OF $58,000 AND IT IS UNDERSTOOD THAT THE DISTRICT OF COLUMBIA GOVERNMENT WILL REIMBURSE THE PROCUREMENT DIVISION TO THE EXTENT OF $25,000.

"THE WORK INVOLVED INCLUDES THE CONSTRUCTION OF A CONCRETE TUNNEL WITH THE REQUIRED STEAM LINE, CONDENSATE LINE, AND HIGH PRESSURE TRAP LINE, TOGETHER WITH CERTAIN CONNECTIONS AND ALL NECESSARY SUMP PITS, PUMPS, MANHOLES, ETC., AS HAS BEEN STANDARDIZED IN THE EXISTING TUNNEL DESIGNS.'

THEREUPON THE FOLLOWING LETTER DATED JUNE 5, 1939, WAS RECEIVED FROM CHARLES A. PETERS, GENERAL MANAGER OF BUILDINGS, NATIONAL PARK SERVICE:

"YOU ARE ADVISED THAT A PUBLIC WORKS ADMINISTRATION ALLOTMENT HAS BEEN MADE TO THE SERVICE IN THE AMOUNT OF $58,000 TO COVER A PORTION OF THE COST OF CONSTRUCTING A STEAM TUNNEL UNDER D STREET FROM THE EXISTING SIXTH STREET TUNNEL AND EXTENDING EAST APPROXIMATELY 780 FEET TO THE POINT WHERE YOUR STEAM CONNECTION IS TO BE TAKEN FOR SERVICE TO YOUR NEW EAST ADMINISTRATION BUILDING. THIS TUNNEL WILL CONTAIN THE NECESSARY STEAM MAIN, CONDENSATE MAIN, AND A HIGH-PRESSURE TRAP LINE.

"THIS ALLOTMENT WAS MADE WITH THE UNDERSTANDING THAT THE DISTRICT OF COLUMBIA WOULD SUPPLY AN ADDITIONAL $25,000 FOR THIS WORK. IN ORDER TO PREVENT ANY DELAY IN THE WORK, IT IS SUGGESTED THAT YOU ADVISE THE PROCUREMENT DIVISION PROMPTLY WITH REGARD TO THE FUNDS WHICH THE DISTRICT OF COLUMBIA WILL PROVIDE.

"THE SERVICE HAS REQUESTED THE PROCUREMENT DIVISION TO HANDLE THE DESIGN AND CONSTRUCTION OF THIS PROJECT ON A REIMBURSABLE BASIS. A COPY OF THE LETTER FROM THIS SERVICE ASKING THE PROCUREMENT DIVISION TO DO THE WORK IS ENCLOSED.'

WHILE CORRESPONDENCE ON THE SUBJECT INDICATES THAT PAYMENT IS TO BE MADE ON A REIMBURSABLE BASIS, IT IS GENERALLY UNDERSTOOD THAT THE NATIONAL PARK SERVICE REQUESTED THAT THE $25,000.00 BE ADVANCED TO IT PRIOR TO PERFORMANCE OF THIS SERVICE. THERE IS SOME DOUBT AS TO WHETHER THE DISTRICT IS AUTHORIZED UNDER SECTION 601 OF THE ECONOMY ACT OF JUNE 30, 1932 (47 STAT. 417, 418), TO ADVANCE THIS SUM TO THE NATIONAL PARK SERVICE OR THE PROCUREMENT DIVISION, THE COMMISSIONERS HAVING BEEN INFORMALLY ADVISED BY YOUR OFFICE THAT THIS SECTION IS NOT APPLICABLE TO THE DISTRICT AND THAT THE COMMISSIONERS ARE NOT AUTHORIZED TO MAKE THE ADVANCE PRIOR TO THE PERFORMANCE OF THE WORK. THERE IS ALSO THE QUESTION AS TO WHETHER THE COMMISSIONERS WOULD BE AUTHORIZED TO ENTER INTO A CONTRACT NOT SPECIFICALLY AUTHORIZED BY LAW, PROVIDING FOR PARTIAL PAYMENT AS THE WORK PROGRESSES OR FOR THE TURNING OVER OF THIS SUM TO THE AGENCY OF THE FEDERAL GOVERNMENT PERFORMING THIS WORK AFTER THE WORK IS COMPLETE.

AS THIS IS A VERY URGENT MATTER, IT IS REQUESTED THAT YOU ADVISE THE COMMISSIONERS AT YOUR EARLIEST CONVENIENCE WHETHER THEY MAY ADVANCE THIS SUM EITHER TO THE NATIONAL PARK SERVICE OR THE PROCUREMENT DIVISION PRIOR TO PERFORMANCE OF THE WORK AND, IF NOT, WHETHER THERE WOULD BE ANY OBJECTION TO ENTERING INTO A CONTRACT WITH THE AGENCY FOR THE PERFORMANCE OF THIS WORK, PAYABLE AS THE WORK PROGRESSES, UNDER A CONTRACT TO BE LET BY THE AGENCY OF THE FEDERAL GOVERNMENT.

SINCE THE RECEIPT OF YOUR LETTER THERE HAS BEEN ENACTED PUBLIC, NO. 148, APPROVED JUNE 21, 1939, 53 STAT. 852, AS FOLLOWS:

THAT THE SECRETARY OF THE INTERIOR, THROUGH THE NATIONAL PARK SERVICE, BE, AND HE IS HEREBY, AUTHORIZED TO FURNISH STEAM FROM THE CENTRAL HEATING PLANT TO SUCH BUILDINGS AS MAY BE ERECTED BY THE DISTRICT OF COLUMBIA ON THE PROPERTY IN THE DISTRICT OF COLUMBIA BOUNDED BY C STREET, THIRD STREET, INDIANA AVENUE, D STREET, AND JOHN MARSHALL PLACE NORTHWEST, AND KNOWN AS SQUARE 533; ON THE PROPERTY BOUNDED BY PENNSYLVANIA AVENUE, JOHN MARSHALL PLACE, LOUISIANA AVENUE, AND SIXTH STREET NORTHWEST, AND KNOWN AS SQUARE 490; ON THE PROPERTY BOUNDED BY PENNSYLVANIA AVENUE, JOHN MARSHALL PLACE, C STREET, AND SIXTH STREET NORTHWEST, AND KNOWN AS SQUARE 491; AND ON THE PROPERTY BOUNDED BY PENNSYLVANIA AVENUE, THIRD STREET, C STREET, AND JOHN MARSHALL PLACE NORTHWEST, AND KNOWN AS RESERVATION 10: PROVIDED, THAT THE DISTRICT OF COLUMBIA AGREES TO PAY FOR THE STEAM FURNISHED AT REASONABLE RATES, NOT LESS THAN COST,AS MAY BE DETERMINED BY THE SECRETARY OF THE INTERIOR: AND PROVIDED FURTHER, THAT THE DISTRICT OF COLUMBIA AGREES TO PROVIDE ALL NECESSARY CONNECTIONS WITH THE GOVERNMENT MAINS AT ITS OWN EXPENSE, AND IN A MANNER SATISFACTORY TO THE SECRETARY OF THE INTERIOR.

IN VIEW OF THE EXPRESS PROVISO IN THE ACT THAT THE DISTRICT OF COLUMBIA SHALL AGREE "TO PROVIDE ALL NECESSARY CONNECTIONS WITH THE GOVERNMENT MAINS AT ITS OWN EXPENSE," THERE WOULD APPEAR TO BE NO AUTHORITY FOR THE EXPENDITURE OF ANY FEDERAL FUNDS, AS DISTINGUISHED FROM DISTRICT OF COLUMBIA FUNDS, FOR THE EXTENSION OF EXISTING MAINS FOR THE SOLE OR PRIMARY PURPOSE OF EXTENDING SERVICE TO THE NEW DISTRICT OF COLUMBIA BUILDINGS. HOWEVER, IF IT HAS BEEN OR SHOULD BE ADMINISTRATIVELY DETERMINED THAT THE PROPOSED EXTENSION IS PRIMARILY REQUISITE FOR THE SERVICE OF FEDERAL BUILDINGS EXISTING OR TO BE CONSTRUCTED, AND THAT CONSTRUCTION OF THE EXTENSION FOR SUCH PURPOSES WOULD BE WARRANTED AT THIS TIME, TAKING INTO CONSIDERATION THE SAVINGS TO BE EFFECTED IN FEDERAL FUNDS BY DOING THE WORK NOW PARTIALLY AT THE EXPENSE OF THE DISTRICT OF COLUMBIA, THERE WOULD APPEAR NO OBJECTION TO THE DISTRICT OF COLUMBIA CONTRIBUTING ITS FAIR SHARE TO THE OVER-ALL COST OF CONSTRUCTING THE EXTENSION, IN LIEU OF, AND NOT TO EXCEED THE COST OF, CONSTRUCTING ITS OWN LINE TO CONNECT WITH THE EXISTING MAIN TO SERVE DISTRICT OF COLUMBIA BUILDINGS CONSTRUCTED IN THE AREA DESIGNATED IN THE ACT OF JUNE 21, 1939, SUPRA.

THE ACT OF JUNE 15, 1938, 52 STAT. 683, AMENDED SECTION 35 OF THE ACT OF JUNE 25, 1910, 36 STAT. 699, TO READ AS FOLLOWS:

THE SECRETARY OF THE TREASURY MAY, IN HIS DISCRETION, UPON THE REQUEST OF THE HEAD OF ANY OTHER EXECUTIVE DEPARTMENT, INDEPENDENT ESTABLISHMENT, OR OTHER FEDERAL AGENCY, CAUSE THE PROCUREMENT DIVISION, TREASURY DEPARTMENT, TO CARRY OUT THE CONSTRUCTION OF ANY BUILDING OR BUILDINGS FOR GOVERNMENTAL PURPOSES WHICH ANY SUCH EXECUTIVE DEPARTMENT, ESTABLISHMENT, OR AGENCY MAY BE AUTHORIZED TO HAVE CONSTRUCTED, INCLUDING THE PREPARATION OF PLANS, DRAWINGS, DESIGNS, SPECIFICATIONS, AND ESTIMATES, THE ACQUISITION OF LAND NECESSARY FOR SITES, THE EXECUTION OF CONTRACTS, AND SUPERVISION OF CONSTRUCTION: PROVIDED, THAT FUNDS APPROPRIATED TO OTHER EXECUTIVE DEPARTMENTS, INDEPENDENT ESTABLISHMENTS, OR OTHER FEDERAL AGENCIES FOR THE FOREGOING PURPOSES SHALL BE AVAILABLE FOR TRANSFER TO AND EXPENDITURE BY THE PROCUREMENT DIVISION, TREASURY DEPARTMENT, IN WHOLE OR IN PART, EITHER IN REIMBURSEMENT OF THE ROPER APPROPRIATIONS OF THE PROCUREMENT DIVISION, FOR THE COST OF SUCH WORK, OR AS ADVANCES TO SPECIAL ACCOUNTS FOR THE PURPOSE OF PROVIDING FOR THE PROSECUTION OF SAID WORK.

THE DISTRICT OF COLUMBIA'S SHARE OF THE COST OF THE PROPOSED STEAM TUNNEL EXTENSION WOULD BE INCIDENTAL TO THE CONSTRUCTION OF A "BUILDING OR BUILDINGS FOR GOVERNMENTAL PURPOSES," AND WHILE THE DISTRICT OF COLUMBIA GOVERNMENT IS NOT A " FEDERAL AGENCY" FOR ADMINISTRATIVE PURPOSES, THAT DOES NOT NECESSARILY PRECLUDE THE ADOPTION IN THIS INSTANCE OF THE PROCEDURE PRESCRIBED IN THE QUOTED STATUTE, PARTICULARLY SINCE THE CONSTRUCTION WORK PROPOSED IS TO BE PROSECUTED ON A JOINT BASIS WITH A FEDERAL AGENCY. THE CIRCUMSTANCE THAT THE TWO SUCCEEDING SECTIONS OF THE SAID ACT OF JUNE 25, 1910, RELATE TO THE ACQUISITION OF PROPERTY IN THE DISTRICT OF COLUMBIA TO BE PAID FOR JOINTLY FROM DISTRICT OF COLUMBIA AND GENERAL FEDERAL REVENUES MAY NOT BE WITHOUT SOME BEARING ON THIS PHASE OF THE MATTER.

BY SECTION 301 OF THE PRESIDENT'S REORGANIZATION PLAN NO. 1, WHICH WAS MADE EFFECTIVE JULY 1, 1939, BY THE JOINT RESOLUTION APPROVED JUNE 7, 1939 ( PUBLIC RESOLUTION NO. 20), THE PUBLIC BUILDINGS BRANCH OF THE PROCUREMENT DIVISION IN THE TREASURY DEPARTMENT, AND THE BRANCH OF BUILDINGS MANAGEMENT OF THE NATIONAL PARK SERVICE IN THE DEPARTMENT OF THE INTERIOR WERE CONSOLIDATED AS THE PUBLIC BUILDINGS ADMINISTRATION AND TOGETHER WITH THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS, AND OTHER AGENCIES, WERE PLACED IN A FEDERAL WORKS AGENCY WITH A FEDERAL WORKS ADMINISTRATOR AT THE HEAD THEREOF, AND BY SECTION 303 (B) ALL FUNCTIONS OF THE SECRETARY OF THE TREASURY AND THE DIRECTOR OF PROCUREMENT RELATING TO THE ADMINISTRATION OF THE PUBLIC BUILDINGS BRANCH OF THE PROCUREMENT DIVISION AND ALL FUNCTIONS OF THE SECRETARY OF THE INTERIOR AND DIRECTOR OF THE NATIONAL PARK SERVICE RELATING TO THE ADMINISTRATION OF THE BRANCH OF BUILDINGS MANAGEMENT, AMONG OTHERS, WERE TRANSFERRED TO THE FEDERAL WORKS ADMINISTRATOR TO BE EXERCISED BY HIM. IT THUS APPEARS THAT THE VARIOUS ADMINISTRATIVE MATTERS HERE INVOLVED NOW WOULD BE SUBJECT TO THE APPROVAL AND DIRECTION OF THE SAID FEDERAL WORKS ADMINISTRATOR, INCLUDING THE DISCRETION UNDER SECTION 35 OF THE ACT OF JUNE 25, 1910, AS AMENDED, SUPRA, AS SUCCESSOR TO THE FUNCTIONS OF THE SECRETARY OF THE TREASURY IN THAT RESPECT, TO CAUSE THE CONSTRUCTION OF THE STEAM TUNNEL TO BE CARRIED OUT BY THE PUBLIC BUILDINGS ADMINISTRATION, AS SUCCEEDING TO THE DUTIES AND FUNCTIONS OF THE PROCUREMENT DIVISION IN SUCH RESPECTS.

ACCORDINGLY, I HAVE TO ADVISE THAT IF THE FEDERAL WORKS ADMINISTRATOR SHALL APPROVE THE PROPOSED PROJECT UNDER THE CONDITIONS SET FORTH HEREIN RESPECTING THE USE OF FEDERAL FUNDS, WHICH OTHERWISE MAY BE PROPERLY AVAILABLE THEREFOR, IN CONJUNCTION WITH DISTRICT OF COLUMBIA FUNDS, WHICH, ALSO, MAY BE AVAILABLE FOR SUCH PURPOSE, THIS OFFICE WOULD NOT BE REQUIRED TO OBJECT TO A TRANSFER OF SUCH DISTRICT OF COLUMBIA FUNDS TO THE PUBLIC BUILDINGS ADMINISTRATION FOR THE DISTRICT'S SHARE OF THE COST OF THE CONSTRUCTION TO BE SO PROCURED.

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