[Protest of Air Force Rejection of Bid for Transformers]
Highlights
A firm protested the Air Force's rejection of its bid as nonresponsive, contending that its bid complied with the solicitation amendment. GAO held that the: (1) Air Force properly rejected the protester's bid as nonresponsive, since it failed to acknowledge a material solicitation amendment which significantly impacted the bidders' obligations; and (2) protester was not sufficiently interested to protest the award, since it would not be in line for award even if its protest were sustained. Accordingly, the protest was denied.
A-59705, MAY 28, 1935, 14 COMP. GEN. 857
EXCHANGE LOSSES - COMPENSATION AND PER DIEM REIMBURSEMENT OF SALARY LOSSES INCURRED BY AN OFFICER OR EMPLOYEE TRAVELING BUT NOT STATIONED IN A FOREIGN COUNTRY IS CONFINED TO AMOUNTS ACTUALLY CONVERTED FOR EXPENDITURE AND MUST BE BASED UPON EVIDENCE OF ACTUAL CONVERSION AND AT THE RATE OF EXCHANGE AT WHICH THE CONVERSION WAS EFFECTED. LOSSES UPON PER DIEM IN LIEU OF SUBSISTENCE ARE TO BE COMPUTED AT THE EXCHANGE RATE IN FORCE FOR THE PARTICULAR COUNTRY ON THE LAST DAY OF TRAVEL WITHIN THAT COUNTRY, OR IF THE PERIOD EXTENDS OVER ONE MONTH, ON THE LAST DAY OF EACH MONTH WITHIN THE TRAVEL PERIOD.
COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF STATE, MAY 28, 1935:
THERE HAS BEEN RECEIVED YOUR LETTER OF MAY 20, 1935, AS FOLLOWS:
THE ASSISTANT DISTRICT ACCOUNTING AND DISBURSING OFFICER AT PARIS, TELEGRAPHED THE DEPARTMENT ON MAY 9, 1935, REFERRING TO YOUR DECISION OF JANUARY 28, 1935 (A-59705), AND REQUESTS INSTRUCTIONS CONCERNING THE PAYMENT OF ACCOUNTS FOR LOSSES SUSTAINED AS A RESULT OF EXCHANGE APPRECIATION IN CONNECTION WITH THE SALARY AND PER DIEM OF PERSONS TRAVELING THROUGH EUROPE WHO ARE UNDER GENERAL ORDERS BUT NOT ASSIGNED TO ANY PARTICULAR COUNTRY. THE STATEMENT IS MADE THAT THE TENDENCY IS TO CLAIM ADJUSTMENT ON THE BASIS OF THE BASIC RATE PRESCRIBED FOR FRANCE, ALTHOUGH THE SALARY AND PER DIEM ALLOWANCE ACCRUED WHILE THE TRAVELER WAS IN ENGLAND OR ELSEWHERE. THE ASSISTANT DISTRICT ACCOUNTING AND DISBURSING OFFICER ASKS TO BE INFORMED WHERE AN EMPLOYEE TRAVELING ON SUCH STATUS IS "ACTUALLY LOCATED FOR OFFICIAL PURPOSES.' HE ADDS THAT SEVERAL URGENT CASES ARE PENDING AND REQUESTS A TELEGRAPHIC REPLY.
THE EXECUTIVE ORDER NO. 6928 OF DECEMBER 24, 1934 (SECTIONS 2 AND 3) READS:
"2. THE PURPOSE OF THESE REGULATIONS IS TO PROVIDE FOR REIMBURSEMENT TO OFFICERS, ENLISTED MEN, AND EMPLOYEES OF THE UNITED STATES (HEREINAFTER REFERRED TO AS EMPLOYEES), FOR LOSSES SUSTAINED FROM APPRECIATION OF FOREIGN CURRENCIES IN THEIR RELATION TO THE AMERICAN DOLLAR, AS AUTHORIZED UNDER THE AFORESAID ACT.
"3. (A) THE LOSS ABOVE REFERRED TO IS THAT CALCULATED ON THE BASIS OF CONVERSION INTO FOREIGN CURRENCY OF THE EMPLOYEE'S NET SALARY AND NET ALLOWANCES, EXCEPT AS PROVIDED IN PARAGRAPHS (B), (C), (D), AND (E) OF THIS SECTION.'
THE GENERAL TENOR OF YOUR DECISIONS IS TO THE EFFECT THAT THE BASIS FOR COMPUTING LOSSES IS THE RATE AT WHICH CONVERSION IS MADE RATHER THAN THE RATE PRESCRIBED FOR THE COUNTRY WHEREIN THE SALARY OR ALLOWANCES ACCRUED.
THE FOLLOWING PORTION OF THE DECISION OF AUGUST 31, 1934 (A-56761), WHILE NOT GENERALLY APPLICABLE TO THE QUESTION AT ISSUE, WOULD SEEM TO HAVE SOME BEARING ON THE SITUATION:
"INSOFAR AS THIS OFFICE IS CONCERNED THERE APPEARS INVOLVED ONLY THE ALLOWANCE OF A PAYMENT FOR FICTITIOUS LOSSES, THAT IS TO SAY, A LOSS BY EXCHANGE WHICH WAS NEVER INCURRED FOR THE REASON THAT PAYMENTS GENERALLY ARE MADE IN UNITED STATES DOLLARS WHICH WOULD BE CONTRARY TO THE PROVISIONS OF THE ACT OF MARCH 26, 1934, AND THE EXECUTIVE ORDERS ISSUED BY THE PRESIDENT IN PURSUANCE THEREOF. * * * IN THE FINAL ANALYSIS, IT MUST BE CONSIDERED THAT IF PAYMENT IS MADE IN UNITED STATES CURRENCY, THE MANNER OR MEANS WHEREBY THE PRICE TO BE PAID IN SUCH CURRENCY IS ASCERTAINED IS NOT MATERIAL, THE LAW AND EXECUTIVE ORDERS IN RELATION TO THIS MATTER CONTEMPLATING COMPENSATION FOR EXCHANGE LOSSES BUT NO PROVISION IS MADE WHEN NO CONVERSION IS NECESSARY IN THE FOREIGN COUNTRY.'
IN VIEW OF THE UNCERTAINTY WHICH EXISTS, AS TO THE BASIC RATE TO BE USED IN COMPUTING CURRENCY APPRECIATION LOSSES, THAT IS, THE ONE ESTABLISHED FOR THE COUNTRY IN WHICH THE CHECK OR DRAFT IS CASHED OR THE ONE ESTABLISHED FOR THE COUNTRY OR COUNTRIES IN WHICH THE OFFICER WAS AT THE TIME THE SALARY AND ALLOWANCES ACCRUED, I WOULD APPRECIATE AN EARLY EXPRESSION OF YOUR VIEWS IN ORDER THAT THE ASSISTANT DISTRICT ACCOUNTING AND DISBURSING OFFICER MAY BE PROPERLY INSTRUCTED BY TELEGRAPH.
PARAGRAPH 3 (C) OF EXECUTIVE ORDER NO. 6928 OF DECEMBER 24, 1934, PROVIDES:
IN CASE OF EMPLOYEES TRAVELING IN FOREIGN COUNTRIES UNDER OFFICIAL ORDERS, NOT EMPLOYED IN OR ON ASSIGNMENT OR DETAIL TO A POST OF DUTY IN A FOREIGN COUNTRY, NO PART OF THE EMPLOYEE'S SALARY NOT CONVERTED FOR EXPENDITURE ABROAD SHALL BE INCLUDED IN THE LOSS REFERRED TO FOR THE PURPOSES OF THESE REGULATIONS.
REIMBURSEMENT OF SALARY LOSSES, THEREFORE, INCURRED BY AN OFFICER OR EMPLOYEE TRAVELING BUT NOT STATIONED IN A FOREIGN COUNTRY IS TO BE CONFINED TO AMOUNTS ACTUALLY CONVERTED FOR EXPENDITURE AND MUST THEREFORE BE BASED UPON EVIDENCE OF ACTUAL CONVERSION AND AT THE RATE OF EXCHANGE AT WHICH THE CONVERSION WAS EFFECTED.
PER DIEM IN LIEU OF SUBSISTENCE BECOMES PAYABLE WHEN THE EXPENSE VOUCHER IS SUBMITTED BY THE OFFICER OR EMPLOYEE. ACCORDINGLY, LOSSES UPON PER DIEM IN LIEU OF SUBSISTENCE ARE TO BE COMPUTED EITHER AT THE EXCHANGE RATE IN FORCE FOR THE PARTICULAR COUNTRY ON THE LAST DAY OF TRAVEL WITHIN THAT COUNTRY, OR IF THE PERIOD EXTENDS OVER ONE MONTH, ON THE LAST DAY OF EACH MONTH WITHIN THE TRAVEL PERIOD.