B-114876, JUL. 29, 1960

B-114876, JUL. 29, 1960

TO THE SECRETARY OF STATE:

BY LETTER OF MAY 5, 1960, MR. ROBERT H. THAYER, SPECIAL ASSISTANT TO THE SECRETARY OF STATE, FORWARDED FOR OUR REVIEW PROPOSED ADMINISTRATIVE PROCEDURES FOR THE DESIGNATION OF ALTERNATE GRANTEES UNDER THE INTERNATIONAL EDUCATIONAL EXCHANGE PROGRAM.

UNDER PRESENT PRACTICES WHEN A RECIPIENT OF AN ORIGINAL GRANT IS UNABLE TO IMPLEMENT HIS GRANT AS ORIGINALLY CONTEMPLATED, THE NAME OF AN ALTERNATE GRANTEE IS DESIGNATED UNDER THE SAME AUTHORIZATION NUMBER AND OBLIGATION NUMBER AS THOSE USED UNDER THE ORIGINAL GRANT. WE HAVE NOT QUESTIONED THIS PROCEDURE WHERE THE ALTERNATE IS DESIGNATED PRIOR TO THE EXPIRATION OF THE PERIOD OF AVAILABILITY FOR OBLIGATION OF THE FISCAL YEAR APPROPRIATION CHARGED WITH THE ORIGINAL GRANT. HOWEVER, WE HAVE INDICATED THAT WHERE THIS PROCEDURE IS USED AND AN ALTERNATE IS DESIGNATED SUBSEQUENT TO THE EXPIRATION OF THE FISCAL YEAR APPROPRIATION, SUCH PROCEDURE SERVES ONLY TO OBLIGATE FISCAL YEAR FUNDS CURRENT AT THAT TIME AND, BECAUSE OF THE PROVISIONS CONTAINED IN SECTION 1311 OF THE SUPPLEMENTAL APPROPRIATIONS ACT, 1955, 68 STAT. 830, COULD NOT BE SAID TO PROPERLY OBLIGATE THE APPROPRIATION CURRENT AT THE TIME THE ORIGINAL GRANT WAS MADE. IN THAT CONNECTION WE STATED IN OUR LETTER TO YOU OF JANUARY 21, 1960, B-114876, A-44014, THAT---

"THE AWARDS HERE INVOLVED ARE MADE TO INDIVIDUALS BASED UPON THEIR PERSONAL QUALIFICATIONS. WHETHER THE AWARD IS CONSIDERED AN AGREEMENT OR A GRANT, IT IS A PERSONAL UNDERTAKING AND WHERE AN ALTERNATE GRANTEE IS SUBSTITUTED FOR THE ORIGINAL RECIPIENT, THERE IS CREATED AN ENTIRELY NEW AND SEPARATE UNDERTAKING. THE ALTERNATE GRANTEE IS ENTITLED TO THE AWARD IN HIS OWN RIGHT UNDER THE NEW AGREEMENT OR GRANT AND NOT ON BEHALF OF, ON ACCOUNT OF, OR AS AN AGENT OF, THE ORIGINAL GRANTEE. IT SEEMS CLEAR THAT AN AWARD TO AN ALTERNATE GRANTEE IS NOT A CONTINUATION OF THE AGREEMENT WITH, OR GRANT TO, THE ORIGINAL GRANTEE EXECUTED UNDER A PRIOR FISCAL YEAR APPROPRIATION, BUT IS A NEW OBLIGATION.'

FOLLOWING FURTHER DISCUSSIONS WITH REPRESENTATIVES OF YOUR DEPARTMENT THIS MATTER WAS AGAIN DISCUSSED IN OUR LETTER TO YOU OF MARCH 15, 1960, B- 114876, IN WHICH WE STATED IN PART THAT---

" * * * WE BELIEVE A PROCEDURE COMPLYING WITH SECTION 1311 AND OTHER LAWS COULD BE DEVELOPED WHICH WOULD PERMIT THE DESIGNATION OF AN ALTERNATE AT THE TIME AN AWARD IS MADE TO THE PRINCIPAL GRANTEE PROVIDED THAT ALL OF THE CRITERIA FOR SELECTION OF THE PRINCIPAL AND REQUIRED ADMINISTRATIVE ACTION ARE ALSO MET CONCERNING THE ALTERNATE WITH THE SOLE EXCEPTION THAT THE AWARD TO THE ALTERNATE IS NOT MAILED TO HIM PENDING A DETERMINATION AS TO WHETHER THE PRINCIPAL ACTUALLY COMPLIES WITH THE TERMS OF HIS AWARD. WE BELIEVE, HOWEVER, THAT IF IT IS DESIRED TO USE ANY PROCEDURE TO QUALIFY ALTERNATES ON SUCH A CONTINGENCY BASIS, THE PROCEDURE SHOULD BE DEVELOPED IN DETAIL AND SUBMITTED TO THIS OFFICE FOR REVIEW AND DETERMINATION OF ITS LEGALITY.'

IT WAS OUR VIEW THAT THE PROPOSED PROCEDURES FORWARDED HERE BY LETTER OF MAY 5, 1960, DID NOT FULLY COMPLY WITH THE CRITERIA EXPRESSED IN OUR PREVIOUS DECISIONS. CONSEQUENTLY, ON JUNE 27, 1960, THE MATTER WAS DISCUSSED WITH REPRESENTATIVES OF YOUR DEPARTMENT AND IT WAS AGREED THAT THE PROCEDURES WOULD BE FURTHER REVISED IN ACCORDANCE WITH THAT DISCUSSION AND RESUBMITTED FOR REVIEW.

THE REVISED PROCEDURES NOW FOR CONSIDERATION WERE FORWARDED HERE BY LETTER OF JULY 12, 1960. IN BRIEF, THEY PROVIDE THAT ALTERNATES WILL BE NAMED AND, WITH CERTAIN EXCEPTIONS, PROCESSED IN THE SAME MANNER AND IN THE SAME FISCAL YEAR AS THE PRINCIPAL. COMPLETE PROCESSING AND PLACEMENT MUST BE MADE BY JUNE 30 OF THE FOLLOWING FISCAL YEAR AND PERFORMANCE UNDER ALTERNATE GRANTS MUST BE BEGUN WITHIN 90 DAYS THEREAFTER.

WE HAVE BEEN INFORMALLY ADVISED THAT PARAGRAPH 3 (A) 112 REFERS ONLY TO THE NATIONAL AGENCY NAME CHECK REQUIRED IN CERTAIN COUNTRIES AND THAT IT WILL BE REVISED TO READ: "REVIEW OF NAME CHECK INFORMATION, WHERE APPLICABLE.' WE AGREE THAT IT WOULD BE UNECONOMICAL TO REQUIRE A COMPLETE INVESTIGATION OF ALL ALTERNATES DESIGNATED FROM THESE PARTICULAR COUNTRIES. BASED ON THIS UNDERSTANDING, THE PROCEDURES, AS REVISED, APPEAR TO BE IN ACCORDANCE WITH THE CONDITIONS AGREED TO ON JUNE 27, 1960, AS BEING NECESSARY TO PROPERLY ESTABLISH OBLIGATIONS WITHIN THE PURVIEW OF SECTION 1311 OF THE SUPPLEMENTAL APPROPRIATION ACT, 1955. ACCORDINGLY, WE WOULD HAVE NO OBJECTION TO THE ISSUANCE THEREOF.