A-58472, NOVEMBER 12, 1934, 14 COMP. GEN. 381

A-58472, NOVEMBER 12, 1934, 14 COMP. GEN. 381

CONTRACTS - FOREIGN PRODUCTS UNDER SECTION 2 OF TITLE III, ACT OF MARCH 3, 1933 (47 STAT. 1520), PAYMENTS FOR OTHER THAN DOMESTIC PRODUCTS PURCHASED UNDER CONTRACTS MAY NOT BE ALLOWED AS A CHARGE AGAINST APPROPRIATED MONEYS UNLESS AND UNTIL IT BE SHOWN THAT THE HEAD OF THE DEPARTMENT OR ESTABLISHMENT CONCERNED HAS DETERMINED (1) THAT THE PURCHASE OF DOMESTIC ARTICLES IN THE PARTICULAR INSTANCE WOULD BE INCONSISTENT WITH THE PUBLIC INTEREST, OR (2) THAT THE COST OF SUCH DOMESTIC ARTICLES WOULD BE UNREASONABLE, OR (3) THAT THE ARTICLES OR THE MATERIALS FROM WHICH THEY ARE MANUFACTURED ARE NOT MINED, PRODUCED, OR MANUFACTURED, AS THE CASE MAY BE, IN THE UNITED STATES IN SUFFICIENT AND REASONABLY AVAILABLE COMMERCIAL QUANTITIES AND OF A SATISFACTORY QUALITY.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, NOVEMBER 12, 1934:

THERE IS BEFORE THIS OFFICE FOR CONSIDERATION CONTRACTS COVERING ITEMS LISTED IN THE GENERAL SCHEDULE OF SUPPLIES, AS FOLLOWS:

T PS-171, H. BOKER AND COMPANY, INC., NEW YORK, N.Y. (ITEMS 41-N-60 TO 69, NEEDLES, CREWEL).

T PS-175, THE FUCHS AND LANG MANUFACTURING COMPANY, NEW YORK, N.Y. (ITEMS 41-N-100 TO 41-N-125, NEEDLES, ENGRAVERS, AND ITEM 41-S-920, SCRAPERS, STONE ENGRAVERS).

T PS-189, SHRIMPTON NEEDLE COMPANY, EAST ORANGE, N.J. (ITEMS 41-N-85 TO 89, NEEDLES, DARNING, AND ITEMS 41-N-336 TO 356, NEEDLES, SEWING).

T PS-478, GEORGE F. MUTH AND COMPANY, WASHINGTON, D.C. (ITEMS 18-I 515-D, 18-I-515-H-3 AND 4, 18-I-518-I, 18-I-545, 18-I-550-D AND E, AND 18-I-1115- A, DRAWING INSTRUMENTS).

THE ARTICLES TO BE FURNISHED UNDER THESE CONTRACTS ARE OF FOREIGN MANUFACTURE AND THERE IS INVOLVED THE QUESTION OF WHETHER THE PURCHASES ARE IN CONTRAVENTION OF THE PROVISIONS OF SECTION 2 OF TITLE III, ACT OF MARCH 3, 1933, 47 STAT. 1520, AS FOLLOWS:

NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AND UNLESS THE HEAD OF THE DEPARTMENT OR INDEPENDENT ESTABLISHMENT CONCERNED SHALL DETERMINE IT TO BE INCONSISTENT WITH THE PUBLIC INTEREST, OR THE COST TO BE UNREASONABLE, ONLY SUCH UNMANUFACTURED ARTICLES, MATERIALS, AND SUPPLIES AS HAVE BEEN MINED OR PRODUCED IN THE UNITED STATES, AND ONLY SUCH MANUFACTURED ARTICLES, MATERIALS, AND SUPPLIES AS HAVE BEEN MANUFACTURED IN THE UNITED STATES SUBSTANTIALLY ALL FROM ARTICLES, MATERIALS, OR SUPPLIES MINED, PRODUCED, OR MANUFACTURED, AS THE CASE MAY BE, IN THE UNITED STATES, SHALL BE ACQUIRED FOR PUBLIC USE. THIS SECTION SHALL NOT APPLY WITH RESPECT TO ARTICLES, MATERIALS, OR SUPPLIES FOR USE OUTSIDE THE UNITED STATES, OR IF ARTICLES, MATERIALS, OR SUPPLIES OF THE CLASS OR KIND TO BE USED, OR THE ARTICLES, MATERIALS, OR SUPPLIES FROM WHICH THEY ARE MANUFACTURED ARE NOT MINED, PRODUCED, OR MANUFACTURED, AS THE CASE MAY BE, IN THE UNITED STATES IN SUFFICIENT AND REASONABLY AVAILABLE COMMERCIAL QUANTITIES AND OF A SATISFACTORY QUALITY.

NO EVIDENCE HAS BEEN SUBMITTED WITH THE ABOVE CONTRACTS TO SHOW THAT THE SECRETARY OF THE TREASURY HAS DETERMINED EITHER THAT THE ARTICLES OR THE MATERIALS FROM WHICH THEY ARE MANUFACTURED ARE NOT MANUFACTURED, MINED, OR PRODUCED IN THE UNITED STATES IN SUFFICIENT AND REASONABLY AVAILABLE COMMERCIAL QUANTITIES AND OF A SATISFACTORY QUALITY, OR THAT THE PRICE OF SUCH DOMESTIC ARTICLES IS UNREASONABLE, OR THAT THE USE OF SUCH DOMESTIC ARTICLES IS INCONSISTENT WITH THE PUBLIC INTEREST. IN RESPONSE TO REQUESTS FOR SUCH EVIDENCE, THERE HAS BEEN RECEIVED A LETTER DATED OCTOBER 19, 1934, FROM ASSISTANT DIRECTOR, BRANCH OF SUPPLY, PROCUREMENT DIVISION, TREASURY DEPARTMENT, AS FOLLOWS:

THERE ARE ENCLOSED TWO PHOTOSTAT COPIES OF THE ORDER OF THE SECRETARY OF THE TREASURY SIGNED BY HIM ON OCTOBER 16, 1934, DIRECTING THE DIRECTOR OF PROCUREMENT, TREASURY DEPARTMENT, TO AUTHORIZE AWARDS WHERE THE UNIT COST OF THE FOREIGN BID IS NOT MORE THAN $100. THIS IS TO CARRY OUT THE PROVISIONS OF TITLE III OF THE ACT OF MARCH 3, 1933 (PUBLIC, NO. 428, 72D CONG.).

THERE ARE ATTACHED CARBON COPIES OF YOUR LETTERS REFERRING TO VARIOUS CONTRACTS ON WHICH SUCH A CERTIFICATE IS REQUIRED, AND IT IS REQUESTED THAT YOU CONSIDER THIS ORDER APPLICABLE TO THESE AS WELL AS TO SUBSEQUENT CONTRACTS OF THIS CHARACTER.

THE ORDER OF THE SECRETARY OF THE TREASURY, DATED OCTOBER 16, 1934, IS AS FOLLOWS:

IN ORDER PROPERLY TO ADMINISTER SECTION 2 OF TITLE III OF THE ACT OF MARCH 3, 1933 (PUBLIC, NO. 428, 72D CONG.), AND IN ORDER TO EXPEDITE THE PROCUREMENT OF SUPPLIES, THE DIRECTOR OF PROCUREMENT, TREASURY DEPARTMENT, IS HEREBY DIRECTED TO AUTHORIZE AWARDS WHERE THE UNIT COST OF THE FOREIGN BID IS NOT MORE THAN $100.00.

THE ACT OF MARCH 3, 1933, SUPRA, CONTAINS NO PROVISION EXEMPTING FROM THE REQUIREMENTS OF THE ACT PURCHASES THE AMOUNT OF WHICH DOES NOT EXCEED $100. NEITHER DOES IT CONFER UPON THE HEAD OF THE DEPARTMENT THE AUTHORITY TO PROVIDE FOR ANY SUCH ARBITRARY EXEMPTIONS.

THE PROVISIONS APPLY TO ALL CONTRACTS ENTERED INTO OR PURCHASES MADE ON AND AFTER MARCH 3, 1933, REGARDLESS OF THE AMOUNT OF THE PURCHASE. CONSEQUENTLY, WITH RESPECT TO THE CONTRACTS ABOVE MENTIONED AND ALL SIMILAR CONTRACTS FOR THE PURCHASE OF OTHER THAN DOMESTIC PRODUCTS, CREDIT FOR PAYMENTS THEREUNDER MAY NOT BE ALLOWED AS A CHARGE AGAINST APPROPRIATED MONEYS UNLESS AND UNTIL IT BE SHOWN THAT THE HEAD OF THE DEPARTMENT OR ESTABLISHMENT CONCERNED HAS DETERMINED (1) THAT THE PURCHASE OF DOMESTIC ARTICLES IN THE PARTICULAR INSTANCE WOULD BE INCONSISTENT WITH THE PUBLIC INTEREST, OR (2) THAT THE COST OF SUCH DOMESTIC ARTICLES WOULD BE UNREASONABLE, OR (3) THAT THE ARTICLES OR THE MATERIALS FROM WHICH THEY ARE MANUFACTURED ARE NOT MINED, PRODUCED, OR MANUFACTURED, AS THE CASE MAY BE, IN THE UNITED STATES IN SUFFICIENT AND REASONABLY AVAILABLE COMMERCIAL QUANTITIES AND OF A SATISFACTORY QUALITY.