CFS-3 delivered to and accepted by the United States, if such payment were delayed beyond the date it was due and owing as a result of the institution of a suit under section 320 (b). In no other circumstances could a court award damages against the United States, its officers or agents, as a result of any delay occasioned by reason of the institution of suit under section 320(b). Pursuant to section 320 (a), the authority to be conveyed by sections 320 (b) and (c) could be exercised only in connection with accounts over which the Comptroller General has settlement authority. At present, 31 U.S.C. $74, empowers the General Accounting Office to certify balances for the settlement of public accounts. Such balances are final and conclusive upon the Executive Branch, with one exception: the Comptroller General may revise such accounts upon request by the person whose account has been so settled, or by the head of the Executive Department, or of the board, commission, or establishment not under the jurisdiction of an Executive Department. The revision must be within one year after the account has been settled by the General Accounting Office, and such revision is final and conclusive upon the Executive Branch. The authority of sections 320 (b) and (c) is intended to be construed as creating a procedural remedy in aid of the authority conveyed by 31 U.S.C. $74, and is neither an enlargement or limitation of such authority. CRS-4 Title II--The purpose of Title II of the bill is to assist the Comptroller in enforcing access to records of non-federal persons and organizations. Section 201 authorizes the Comptroller General to sign and issue subpoenas requiring the production of negotiated contract and subcontract records, and records of other non-federal persons or organizations to which he has a right of access by law or agreement. The Comptroller General has right of access by law to books and records of an extensive list of non-federal persons and organizations, but has had previously no power to subpoena such records. Additionally, 41 U.S.C. $254 (c) (1970) provides that all contracts negotiated without advertising pursuant to procurement procedures provisions, shall include a clause to the effect that the Comptroller General shall, until the expiration of three years after final payment, have access for purposes of audit and examination to any directly pertinent books, documents, papers, and records of the contractor or any of his subcontractors engaged in the performance of and involving transactions related to such contracts or subcontracts. A list of statutory provisions which grant to the Comptroller General the right of access to books and records of non-federal persons and organizations is attached as an appendix to this memorandum. Section 202 of the bill would provide the Comptroller General with certain procedural and substantive remedies in case of disobedience CRS-5 to a subpoena issued pursuant to section 201. The Comptroller General could invoke the aid of any district court of the United States in requiring the production of the records involved. If the Comptroller General issues a subpoena pursuant to section 201 to any contractor, subcontractor, or other non-federal person or organization, and the recipient of such subpoena refuses to obey, any United States District Court within which jurisdiction recipient of the subpoena is found or does business could issue an order requiring such recipient to produce the books or records subpoenaed. Failure to obey such order would be punishable by the court as a contempt. Title III--Section 301 of the bill would assist in enforcing the authority of the Comptroller General in gaining access to information from federal departments and establishments, presently authorized by 31 U.S.C. $54 (1970), which provides: 854. Information furnished to Comptroller General by departments and establishments. All departments and establishments shall furnish to the Comptroller General such information regarding the powers, duties, activities, organization, financial transactions, and methods of business of their respective offices as he may from time to time require of them; and the Comptroller General, or any of his assistants or employees, when duly authorized by him, shall, for the purpose of securing such information, have access to and the right to examine any books, documents, papers, or records of any such department or establishment. The authority contained in this section shall not be applicable to expenditures made under the provisions of section 107 of this title. (June 10, 1921, ch. 18, title III, 313, 42 Stat, 26.) CRS-6 If any information requested by the Comptroller General has not been made available to the General Accounting Office within 20 days after delivery of the request, the Comptroller General would be authorized to bring an action in the United States District Court for the District of Columbia against the head of the department or establishment concerned, to compel the production of the materials requested. The Attorney General would be authorized to represent the defendant in such action. Title IV--Title IV would enact provisions authorizing the Comptroller General to conduct profit studies of all government contractors and subcontractors, on a selective basis, who aggregate $1 million or more in government contracts or subcontracts in the contractor's most recent fiscal year. Such studies could be made at the discretion of the Comptroller General, but at least once in each five-year period following the enactment of S. 2268. The results of such studies would be submitted promptly to Congress. Section 401 (b) would require contractors to whom the bill would apply, upon the request of the Comptroller General or his authorized agent, to prepare and submit such information maintained in the normal course of business as is determined necessary by the Comptroller General to conduct the study authorized by section 401(a). Section 401(c) would authorize the Comptroller General to audit, inspect, and copy the books, accounts, and records of such contractors, to the extent that the Comptroller General determines is necessary to permit CRS-7 the required calculations. However, the Comptroller General, and his employees and agents would be prohibited from disclosing any information obtained solely under the authority of these sections, pertaining to any individual commercial contract, or any individual government contract entered into pursuant to formally advertised competitive bidding, if that information may reveal a contractor's profits, or is certified in writing by the contractor to be of a proprietary nature. Presumably, the information required to be furnished by sections 401(b) and (c) would be obtainable by subpoena authorized under Title II of the bill. Section 401 contains definitions of terms used in S. 2268, and a general provision permitting the Comptroller General to be represented in actions brought under these provisions by attorneys employed in the General Accounting Office or by counsel whom he may employ. Such employment may be made without regard to the provisions of title 5, United States Code, regarding appointments in the competitive service, and the provisions of title 5, U.S.C., chapter 51, and chapter 53, subchapters III and VI, relating to classification and General Schedule pay rates. Finally, such general provision would state that any action brought under this act shall be expedited in every way. |