B-136722, SEP 15, 1958
Highlights
THE PROPOSED AGREEMENT APPARENTLY IS DESIGNED TO EFFECTUATE A RECOMMENDATION OF THE SPECIAL TASK FORCE OF THE HOOVER COMMISSION REPORTING ON FEDERAL DEPOT UTILIZATION. YOUR LETTER OF JUNE 23 STATES THAT REGULATIONS WILL BE ISSUED AT A LATER DATE TO IMPLEMENT THE AGREEMENT. WE RECOMMEND THAT ADEQUATE PROCEDURES FOR CONTROL SUPERVISION BE DEVELOPED TO COORDINATE SPACE AVAILABILITY AND NEEDS ON A MORE DIRECT AND CURRENT BASIS THAN IS PROVIDED IN THE PROPOSED AGREEMENT. PARAGRAPH 6 OF THE PROPOSED AGREEMENT PROVIDES THAT THE REQUESTING AGENCY WILL BE RESPONSIBLE FOR ACCOUNTABILITY. WE BELIEVE THAT THE AGENCY OPERATING THE FACILITY SHOULD BE HELD ACCOUNTABLE AS A WAREHOUSEMAN FOR LOSS OR DAMAGE DURING THE TIME THE MATERIAL IS IN STORAGE IN ITS FACILITY.
B-136722, SEP 15, 1958
PRECIS-UNAVAILABLE
FRANKLIN FLEETS:
YOUR LETTER OF JUNE 23, 1958, TRANSMITTED FOR OUR CONSIDERATION COPIES OF A PROPOSED AGREEMENT FOR CROSS-SERVICING OF STORAGE AND WAREHOUSING BETWEEN THE DEPARTMENT OF DEFENSE AND THE CIVILIAN AGENCIES.
THE PROPOSED AGREEMENT APPARENTLY IS DESIGNED TO EFFECTUATE A RECOMMENDATION OF THE SPECIAL TASK FORCE OF THE HOOVER COMMISSION REPORTING ON FEDERAL DEPOT UTILIZATION. WE STRONGLY ENDORSE THE PROPOSAL OF CROSS-SERVICING BETWEEN THE AGENCIES IN STORAGE ACTIVITIES TO THE FULLEST EXTENT POSSIBLE. HOWEVER, THE AGREEMENT AS PRESENTED APPEARS TO APPLY ONLY TO TRANSACTIONS BETWEEN THE DEPARTMENT OF DEFENSE AND THE CIVILIAN AGENCIES. SEE PARAGRAPHS 1, 3, 8 AND 9. WE RECOMMEND THAT PROCEDURES BE DEVISED TO PROMOTE CROSS-SERVICING OF STORAGE ACTIVITIES BETWEEN THE VARIOUS CIVILIAN AGENCIES.
THE AGREEMENT DOES NOT ESTABLISH PROCEDURES TO ASSURE MAXIMUM UTILIZATION OF CROSS-SERVICING BETWEEN THE AGENCIES. YOUR LETTER OF JUNE 23 STATES THAT REGULATIONS WILL BE ISSUED AT A LATER DATE TO IMPLEMENT THE AGREEMENT. WE RECOMMEND THAT ADEQUATE PROCEDURES FOR CONTROL SUPERVISION BE DEVELOPED TO COORDINATE SPACE AVAILABILITY AND NEEDS ON A MORE DIRECT AND CURRENT BASIS THAN IS PROVIDED IN THE PROPOSED AGREEMENT. CONSIDERATION SHOULD BE GIVEN TO THE ESTABLISHMENT OF A CENTRAL CLEARING HOUSE TO WHICH ALL AGENCIES WOULD REPORT AVAILABLE SPACE AND SPACE REQUIREMENTS. ALSO, THE PROCEDURES SHOULD PROVIDE FOR COORDINATION WITH THE BUREAU OF THE BUDGET SO THAT BUDGETARY REQUESTS OF AGENCIES FOR NEW STORAGE FACILITIES OR FUNDS FOR RENTAL OF COMMERCIAL STORAGE SPACE CAN BE EFFECTIVELY EVALUATED.
PARAGRAPH 6 OF THE PROPOSED AGREEMENT PROVIDES THAT THE REQUESTING AGENCY WILL BE RESPONSIBLE FOR ACCOUNTABILITY. WE BELIEVE THAT THE AGENCY OPERATING THE FACILITY SHOULD BE HELD ACCOUNTABLE AS A WAREHOUSEMAN FOR LOSS OR DAMAGE DURING THE TIME THE MATERIAL IS IN STORAGE IN ITS FACILITY. PARAGRAPH 6 SHOULD BE APPROPRIATELY CLARIFIED IN THIS RESPECT. IT SHOULD BE NOTED THAT SUCH ACCOUNTABILITY ON THE PART OF THE AGENCY OPERATING THE FACILITY WILL REQUIRE THAT FUNDS BE AVAILABLE TO PAY FOR SUCH LOSSES AND DAMAGES. SINCE THE AVAILABILITY OF PRESENT APPROPRIATIONS FOR SUCH PURPOSES IS DOUBTFUL, CONSIDERATION SHOULD BE GIVEN TO THE CHANGES REQUIRED IN APPROPRIATIONS IN ORDER TO PERMIT SUCH PAYMENTS.
PARAGRAPH 13 SHOULD BE AMENDED TO STATE THAT BILLINGS FOR SERVICES RENDERED WILL BE MADE NOT LESS FREQUENTLY THAN QUARTERLY NOR MORE FREQUENTLY THAN MONTHLY AND THAT REIMBURSEMENT SHALL BE MADE PROMPTLY AFTER RECEIPT OF THE BILLS.
WE ENDORSE THE USE OF PREDETERMINED STANDARD RATES FOR EACH TYPE OF SERVICE RENDERED, AS PROVIDED IN PARAGRAPH 14. WE HAVE NOT, HOWEVER, REVIEWED THE REASONABLENESS OF THE RATES INCLUDED IN TAB C, OR THE BASES ON WHICH THEY WERE DETERMINED.
PARAGRAPH 15 PROVIDES FOR CANCELLATION OF CROSS-SERVICING ARRANGEMENTS WHEN IT BECOMES NECESSARY FOR THE AGENCY OPERATING A FACILITY TO INACTIVATE OR DISPOSE OF THE FACILITY. THIS PARAGRAPH SHOULD ALSO PROVIDE FOR CANCELLATION IN THE EVENT A FACILITY IS WITHDRAWN FROM THE CROSS- SERVICING ARRANGEMENT FOR STRATEGIC OR OTHER REASONS.