B-105117, MAR 16, 1953

B-105117, MAR 16, 1953

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO LETTER DATED FEBRUARY 3, 1953, FROM THE ASSISTANT SECRETARY OF THE AIR FORCE, SUBMITTING FOR DECISION A QUESTION AS TO THE PROPRIETY OF PAYMENT OF AMOUNTS WHICH FROM TIME TO TIME BECOME DUE UNDER PROPOSED CONTRACT NO. AF 17(601)-64 WHICH WAS NEGOTIATED BY THE CONTRACTING OFFICER AT DOW AIR FORCE BASE, WITH THE CITY OF BANGOR, MAINE, PURSUANT TO THE PROVISIONS OF SECTION 2(C)(1) OF THE ARMED SERVICES PROCUREMENT ACT OF 1947, 62 STAT. 21.

UNDER THE PROPOSED CONTRACT THE CITY OF BANGOR WOULD FURNISH ALL LABOR, EQUIPMENT, APPLIANCES, AND MATERIALS NEEDED IN CONNECTION WITH RUBBISH COLLECTION AND DISPOSAL, STREET CLEANING, STREET MAINTENANCE, SNOW AND ICE REMOVAL, AND GARBAGE COLLECTION WITHIN THE FAIRMOUNT TERRACE HOUSING PROJECT LOCATED INSIDE THE CITY LIMITS. IT IS STATED THAT SUCH SERVICES ARE CONSIDERED TO BE ESSENTIAL TO THE HEALTH AND WELFARE OF THE AIR FORCE MILITARY AND CIVILIAN PERSONNEL RESIDING IN FAIRMOUNT TERRACE, A GOVERNMENT-OWNED HOUSING PROJECT. ALSO, IT DOW AIR FORCE BASE AND CANNOT BE SERVICED ECONOMICALLY AND EFFECTIVELY IS STATED THAT THE PROJECT IS LOCATED A CONSIDERABLE DISTANCE FROM THE BY EXISTING AIR FORCE PERSONNEL AND EQUIPMENT, AND THAT BECAUSE ADDITIONAL AIR FORCE PERSONNEL WOULD BE NEEDED TO PERFORM SUCH SERVICES, THE AGREED-TO CONTRACT PRICE OF $2,881.77 PER YEAR IS CONSIDERED TO BE REASONABLE.

IT IS UNDERSTOOD THAT THE HOUSING PROJECT HERE INVOLVED IS THE SAME AS THAT CONSIDERED IN 31 COMP. GEN. 405, WHEREIN IT WAS HELD THAT, BECAUSE THE RECORD THEN SHOWED THE SERVICES WERE THOSE FURNISHED PROPERTY OR RESIDENTS OF THE CITY WITHOUT SPECIAL SERVICE OR OTHER CHARGES AND WERE USUALLY COVERED BY TAXES, THE PAYMENTS THERE PROPOSED IN LIEU OF TAXES WERE UNAUTHORIZED. IT IS UNDERSTOOD ALSO THE HOUSING PROJECT PERMANENTLY HAS BEEN TRANSFERRED TO THE AIR FORCE FOR PURPOSES OF OPERATION AND MAINTENANCE AS QUARTERS. THE SCHEDULE OF "JOB" RATES ATTACHED TO THE CONTRACT SHOWS THAT PAYMENT FOR THE SERVICES IS TO BE MADE UPON THE BASIS OF THE ESTIMATED COSTS TO THE CITY OF PERFORMING THEM EACH YEAR. ALSO, THE RECORD NOW DISCLOSES THAT SUCH SERVICES LAWFULLY ARE NOT REQUIRED TO BE RENDERED BY THE CITY WITHOUT COST UPON THE PROPERTY AND STREETS HERE INVOLVED.

THE ARMED SERVICES PROCUREMENT ACT OF 1947, 62 STAT. 21, AUTHORIZES THE AGENCY HEAD OR THE OFFICER DESIGNATED IN ACCORDANCE WITH SECTIONS 7 AND 10 THEREOF TO NEGOTIATE WITHOUT ADVERTISING CONTRACTS FOR SUPPLIES AND SERVICES IN CONNECTION WITH THE REPAIR OF BUILDINGS, ROADS, SIDEWALKS, SEWERS, MAINS, AND SIMILAR ITEMS (SUBSECTION 2(E)), IF THEY ARE DETERMINED TO BE SUPPLIES AND SERVICES NECESSARY IN THE PUBLIC INTEREST DURING THE PERIOD OF A NATIONAL EMERGENCY DECLARED BY THE PRESIDENT OR BY THE CONGRESS, OR IF THEY ARE FOR SUPPLIES OR SERVICES FOR WHICH IT IS IMPRACTICABLE TO SECURE COMPETITION BY ADVERTISING

ACCORDINGLY, AND SINCE THE RECORD NOW ESTABLISHES THAT THE SERVICES (SUBSECTIONS 2(C)(1) AND (10)). INVOLVED ARE NOT SUCH AS THE CITY OF BANGOR IS REQUIRED TO RENDER TO THE PROJECT WITHOUT CHARGE, THIS OFFICE WILL INTERPOSE NO OBJECTION TO OTHERWISE PROPER PAYMENTS UNDER THE PROPOSED CONTRACT.

THE COPIES OF THE PROPOSED CONTRACT ARE RETURNED HEREWITH.