B-56320, AUGUST 1, 1946, 26 COMP. GEN. 69

B-56320, AUGUST 1, 1946, 26 COMP. GEN. 69

RENTAL ALLOWANCE - OCCUPANCY ON RENTAL BASIS OF COST-PLUS CONTRACTOR'S HOUSING FACILITIES HOUSING FACILITIES, DESIGNATED AS "STAFF DWELLINGS," CONSTRUCTED AND CONTROLLED BY A COST-PLUS CONTRACTOR IN CONNECTION WITH THE OPERATION OF A GOVERNMENT-OWNED, CONTRACTOR-OPERATED PLANT ARE TO BE REGARDED AS "OTHER THAN PUBLIC QUARTERS" WITHIN THE MEANING OF THE ACT OF JULY 2, 1945, WHICH ARMY PERSONNEL AND THEIR DEPENDENTS, IF ANY, ARE PERMITTED TO OCCUPY ON A RENTAL BASIS WITHOUT LOSS OF QUARTERS OR RENTAL ALLOWANCE.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF WAR, AUGUST 1, 1946:

THERE HAS BEEN CONSIDERED YOUR LETTER DATED MARCH 1, 1946, AS FOLLOWS:

IN ORDER THAT APPROPRIATE INSTRUCTIONS IN THE PREMISES MAY BE ISSUED TO DISBURSING OFFICERS OF THE ARMY, YOUR DECISION IS REQUESTED AS TO THE PROPRIETY OF PAYMENT OF RENTAL ALLOWANCES TO ARMY OFFICERS WHO OCCUPY ON A RENTAL BASIS HOUSING FACILITIES, USUALLY DESIGNATED AS "STAFF ELLINGS," AT GOVERNMENT-OWNED, CONTRACTOR-OPERATED, PLANTS.

REFERENCE IS MADE TO THE ACT OF 2 JULY 1945 ( PUBLIC LAW 120, 79TH CONGRESS) WHEREIN IT IS PROVIDED THAT:

"* * * NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW (INCLUDING ANY LAWS RESTRICTING THE OCCUPANCY OF HOUSING FACILITIES UNDER THE JURISDICTION OF GOVERNMENT DEPARTMENTS OR AGENCIES BY PERSONNEL, AND DEPENDENTS OF PERSONNEL, OF THE ARMY, NAVY, MARINE CORPS, AND COAST GUARD ABOVE SPECIFIED RANKS, OR BY PERSONNEL, AND DEPENDENTS OF PERSONNEL, OF THE COAST AND GEODETIC SURVEY AND THE PUBLIC HEALTH SERVICE), PERSONNEL OF ANY OF THE SERVICES MENTIONED HEREIN AND THEIR DEPENDENTS MAY BE ACCEPTED AS TENANTS IN AND MAY OCCUPY ON A RENTAL BASIS ANY SUCH HOUSING FACILITIES, OTHER THAN PUBLIC QUARTERS CONSTRUCTED OR DESIGNATED FOR ASSIGNMENT TO AND OCCUPANCY WITHOUT CHARGE BY SUCH PERSONNEL AND THEIR DEPENDENTS, IF ANY, AND SUCH PERSONNEL SHALL NOT BE DEPRIVED BY REASON OF SUCH OCCUPANCY OF MONEY ALLOWANCES TO WHICH THEY ARE OTHERWISE ENTITLED FOR RENTAL OF QUARTERS.'

REFERENCE IS ALSO MADE TO THE FOLLOWING AUTHORITY CONTAINED IN SECTION 20 OF THE MILITARY APPROPRIATION ACT OF 1946 (IDENTICAL PROVISIONS APPEAR IN SECTIONS 21 OF THE MILITARY APPROPRIATION ACTS OF 1944 AND 1945, RESPECTIVELY):

"DURING THE FISCAL YEAR 1946 OCCUPANCY OF GOVERNMENT FACILITIES UNDER THE JURISDICTION OF THE MILITARY ESTABLISHMENT ON A RENTAL BASIS BY PERSONNEL OF THE SERVICES MENTIONED IN THE TITLE OF THE PAY READJUSTMENT ACT OF 1942 OR BY THEIR DEPENDENTS SHALL NOT DEPRIVE SUCH PERSONNEL OF MONEY ALLOWANCES FOR RENTAL OF QUARTERS.'

ALTHOUGH THE COST-PLUS-A-FIXED-FEE CONTRACTS UNDER WHICH CONTRACTORS OPERATE GOVERNMENT-OWNED PLANTS TO PRODUCE WAR MATERIAL VARY IN MANY DETAILS, ALL OR VIRTUALLY ALL OF THEM DEFINE THE TERM ,PLANT" TO INCLUDE "ANY PART THEREOF," OR SPECIFICALLY INCLUDE IN THE DEFINITION OF SUCH TERM ,STAFF DWELLINGS," AND PROVIDE THAT "ALL REVENUE FROM THE OPERATIONS OF THE HOSPITAL OR OTHER FACILITIES * * * SHALL BE ACCOUNTED FOR BY THE CONTRACTOR AND APPLIED IN REDUCTION OF THE COST OF THE WORK.'

IT APPEARS THAT THESE STAFF DWELLINGS ARE ASSIGNED TO ARMY OFFICERS AT THE DIRECTION OF THE CONTRACTOR WHO APPLIES THE RENT RECEIVED FROM SUCH PERSONNEL TO REDUCE THE COST OF THE WORK UNDER THE CONTRACT.

ACCORDINGLY, YOUR DECISION IS REQUESTED WHETHER UNDER AUTHORITY OF THE CHIEF ACTS, OR OTHERWISE, ARMY OFFICERS MAY OCCUPY SUCH HOUSING FACILITIES ON A RENTAL BASIS WITHOUT FORFEITURE OF RENTAL ALLOWANCES TO WHICH THEY ARE OTHERWISE ENTITLED.

SINCE IT APPEARS FROM YOUR LETTER THAT THE "STAFF DWELLINGS" INVOLVED WERE CONSTRUCTED BY THE CONTRACTOR FOR THE OPERATION OF THE " GOVERNMENT- OWNED, CONTRACTOR-OPERATED, PLANTS," AND THAT THE SAID DWELLINGS ARE UNDER THE CONTROL OF THE CONTRACTOR, IT SEEMS CLEAR THAT SAID DWELLINGS ARE ,OTHER THAN PUBLIC QUARTERS CONSTRUCTED OR DESIGNATED FOR ASSIGNMENT TO AND OCCUPANCY WITHOUT CHARGE BY SUCH PERSONNEL AND THEIR DEPENDENTS IF ANY" WITHIN THE MEANING OF THE ACT OF JULY 2, 1945, 59 STAT. 316, QUOTED IN YOUR LETTER. ACCORDINGLY, YOUR QUESTION IS ANSWERED IN THE AFFIRMATIVE.