B-129352, OCT. 29, 1956
Highlights
WHEREAS CONTRACTS FOR SUCH OPERATIONS IN THE PAST HAVE BEEN AWARDED ON A MANAGEMENT FEE BASIS. THAT SUCH CONTRACT WAS AWARDED WITHOUT PUBLIC OPENING OF BIDS. INASMUCH AS THE RECORDS OF THIS OFFICE INDICATE IT HAS BEEN THE POLICY OF YOUR DEPARTMENT IN THE PAST TO PROVIDE IN SUCH CONTRACTS FOR PAYMENTS INTO THE TREASURY TO COVER THE ESTIMATED VALUE OF SPACE WITHIN THE PENTAGON BUILDING WHICH IS NECESSARILY OCCUPIED BY FOOD OR CONCESSION OPERATIONS. IT IS OUR OPINION THAT SUCH PAYMENTS MUST NECESSARILY BE CLASSIFIED AS PUBLIC FUNDS. IN THE EVENT WE HAVE BEEN CORRECTLY INFORMED THAT A DIFFERENT TYPE OF CONTRACT IS NOW IN EFFECT AND THAT SUCH CONTRACT WAS AWARDED WITHOUT PUBLIC OPENING OF BIDS.
B-129352, OCT. 29, 1956
TO THE SECRETARY OF DEFENSE:
IT HAS BEEN BROUGHT TO OUR ATTENTION THAT A CONTRACT HAS RECENTLY BEEN AWARDED TO KNOTT HOTELS CORPORATION FOR OPERATION OF THE PENTAGON RESTAURANTS ON A CONCESSIONS BASIS, WHEREAS CONTRACTS FOR SUCH OPERATIONS IN THE PAST HAVE BEEN AWARDED ON A MANAGEMENT FEE BASIS, AND THAT SUCH CONTRACT WAS AWARDED WITHOUT PUBLIC OPENING OF BIDS.
INASMUCH AS THE RECORDS OF THIS OFFICE INDICATE IT HAS BEEN THE POLICY OF YOUR DEPARTMENT IN THE PAST TO PROVIDE IN SUCH CONTRACTS FOR PAYMENTS INTO THE TREASURY TO COVER THE ESTIMATED VALUE OF SPACE WITHIN THE PENTAGON BUILDING WHICH IS NECESSARILY OCCUPIED BY FOOD OR CONCESSION OPERATIONS, IT IS OUR OPINION THAT SUCH PAYMENTS MUST NECESSARILY BE CLASSIFIED AS PUBLIC FUNDS. FOR THIS REASON IT WOULD APPEAR THAT THE CONTRACTS IN QUESTION MAY REASONABLY BE CLASSIFIED AS PUBLIC CONTRACTS, SUBJECT TO THE VARIOUS STATUTES RELATING TO ADVERTISING, PUBLIC OPENING, AND ACCOUNTABILITY FOR PUBLIC FUNDS.
ACCORDINGLY, IN THE EVENT WE HAVE BEEN CORRECTLY INFORMED THAT A DIFFERENT TYPE OF CONTRACT IS NOW IN EFFECT AND THAT SUCH CONTRACT WAS AWARDED WITHOUT PUBLIC OPENING OF BIDS, IT IS REQUESTED THAT WE BE ADVISED ON (1) THE STATUTORY AUTHORITY UNDER WHICH THE PENTAGON BUILDING CONCESSION AND FOOD OPERATION CONTRACTS ARE AWARDED BY YOUR DEPARTMENT, (2) YOUR AUTHORITY FOR NOT REQUIRING PUBLIC OPENING OF BIDS FOR SUCH CONTRACTS, (3) THE ANNUAL AMOUNT FOR SPACE RENTAL WHICH WAS DEPOSITED INTO THE TREASURY UNDER THE LAST PRECEDING CONTRACT FOR MANAGEMENT OF THE PENTAGON RESTAURANTS, AND (4) THE ANNUAL AMOUNT WHICH IS EXPECTED TO BE DEPOSITED INTO THE TREASURY FOR SPACE RENTAL UNDER THE PRESENT CONTRACT.