APPROPRIATIONS-Continued

Reimbursement-Continued

Justice Department:

Legal services rendered for District of
Columbia-provisions in Dept. of Justice
annual appropriation acts requiring
reimbursement by Dist. of Col. of 60
percent of expenditures or offices of
U S. Attorney and U. S. Marshal for
Dist. of Col., do not require reim-
bursement of expenditures which are
disbursed from appropriation "Sup
port of United States Prisoners" by
said U. 8. Marshal for prisoners
charged exclusively with Federal
offenses...
Psychiatric service rendered for District
of Columbia:

Cost of psychiatric services rendered
in criminal cases tried in Municipal
Ct. of Dist. of Col. in name of U. S.
by U. S. Attorney pursuant to pro-
visions of sec. 101, title 23, of Dist. of
Col. Code is chargeable to Dept. of
Justice appropriation "Support of
United States Prisoners" only ap
propriation available for that pur
pose, and availability remains same
whether services are rendered pur
suant to motion of U. S. Attorney,
or on behalf of accused, or by order
of court....
Provisions in Dept. of Justice annual
appropriation acts requiring reim
bursement by Dist. of Col. of 60
percent of expenditures for offices of
U. S. Attorney and U. S. Marshal
for Dist. o. Col. are applicable to
expenditures for psychiatric services
rendered in criminal cases tried in
Municipal Ct. of Dist. of Col. in
name of U. S. by U. 8. Attorney
pursuant to sec. 101, title 23, of Dist.
of Col. Code...
Provisions in Dept. of Justice annual
appropriation acts requiring reim
bursement by Dist. of Col. of 60
percent of expenditures for offices of
U. S. Attorney and U. S. Marshal
for Dist. of Col. are applicable to
expenditures for psychiatric services
rendered strictly in Federal cases in
U. S. Dist. Ct. for Dist. of Col., or
which payments are made from ap-
propriation "Support of United
States Prisoners" pursuant to au-
thority in act of Sept. 7, 1949-------
Specific v general-Civil Defense-purchase
of penicillin-in view of specific appropria-
tion in Supplemental Appro. Act, 1952,
making funds available for "all expenses
necessary" for Civil Defense Program of
Dist. of Col., there is no authority of law
to charge any appropriation of Dist. of Col.
Health Dept. for District's share of cost of
penicillin to be used for Civil Defense
purposes...

Transfers:

Between departments and establishments:
Limitations:

Restriction on appointments to vacant

positions:

In applying provisions of sec. 605 of
Independent Offices Appro. Act,
1952 restricting expenditure of
funds for payment of compensa-
tion o employees appointed to
positions becoming vacant during
fiscal year 1952. to funds made
available to Geological Survey by
transfer there may be used com-
posite personnel ceiling established
on basis of individual ceilings cal-
culated by analysis of each source
of funds.....

Inasmuch as advance of funds to
working fund is subject to same
restrictions in hands of performing
agency as would be case if such
funds were being used by advanc
ing agency, restriction in sec. 605
of Independent Offices Appro.
Act, 1952, upon use of appropriated
funds for payment of compensa
tion of employees appointed to
positions becoming vacant during
fiscal year 1952, cannot be defeated
by transfer of funds to another

agency..
Funds advanced or reimbursed from
appropriations falling within ex
ceptions to provisions of sec. 703
of Labor-Federal Security Appro.
Act, 1952, prohibiting expenditure
of funds for payment of compensa
tion of employees appointed to
positions becoming vacant during
fiscal year 1952, may be expended
without regard to limitations of
sec. 703 except with respect to re-
imbursable transactions related to
appropriations subject to restric
tion.....

Provisions of sec. 703 of Labor-Fed-
eral Security Appro. Act, 1952,
prohibiting expenditure of funds
for payment of compensation of
employees appointed to positions
becoming vacant during fiscal
year 1952, attaches to appropria-
tions of Federal Security Agency
not otherwise excepted by section
and fact that appropriations used
in contravention of sec. 703 sub-
sequently may be reimbursed is
not controlling-in reimbursable
transactions it is presence or
absence of restriction upon ap-
propriation immediately used to
pay compensation attached to
position that primarily determines
its availability....

APPROPRIATIONS—Continued

Transfers-Continued

Between departments and establishments

-Continued

Period of availability:

In view of last proviso of sec. 1210, act
of Sept. 6, 1950, which restricts use
of funds withdrawn from one ap-
propriation for credit to another,
under sec. 601 of act of June 30, 1932,
to period provided by appropriating
act, order for work or service placed
by one agency with another no
longer obligates appropriation of
ordering agency in same manner as
orders or contracts placed with
private contractors and therefore,
work or service covering more than
one fiscal year is to be charged to
appropriation for fiscal year in
which work is performed or service
is rendered....
Under last proviso of sec. 1210 of act
of Sept. 6, 1950, which restricts use
of funds withdrawn from one ap-
propriation for credit to another
pursuant to sec. 601 of act of June 30,
1932, to period provided by approp-
priating act, reimbursement
agency for services performed for
another, where order is placed,
service performed and reimburse-
ment to multiple year appropriation
all occur during one fiscal year,
assums life of multiple year appro
priation...

to

Page APPROPRIATIONS-Continued
not carried to surplus fund of Treasury,
provided no deficiency is incurred in any
of appropriations as result of such transfer.
BIDDERS:

83

83

788

Sys. Memo. 22, June 10, 1952...
Within departments or establishments-
Working Capital Funds-Navy Man-
agement Fund, 1951, established by sec.
406 of National Security Act, as
amended, is appropriation within
meaning of term "any appropriations"
as used in sec. 405 of act establishing
Working Capital Funds by transfer
thereto of unexpended balances of any
appropriations of military departments
not carried to surplus fund of Treasury,
provided no deficiency is incurred in
any of appropriations as result of such
transfer..

Working Capital Funds-Navy Management
Fund, 1951-Navy Management Fund,
1951, established by sec. 406 of National
Security Act, as amended, is appropriation
within meaning of term "any appropria-
tions" as used in sec. 405 of act establishing
Working Capital Funds by transfer
thereto of unexpended balances of any
appropriations of military departments
225273°-53-57

7

Deposits-Furnishing deficiencies-effect
on contract awards. See Bids, acceptance
or rejection, security furnishin} deficiencies.
BIDS:

Acceptance or rejection:

Acceptance of other than lowest:
Bidder qualifying as small business

concern:

Contracts may be awarded to small
business firms by negotiation, under
sec. 2 (c) (1) of Armed Services Pro-
curement Act, 1947, and under sec.
302 of Federal Property and Admin-
istrative Services Act, 1949, upon
proper determination by Agency
head that award is necessary in
public interest or when such action
is supported by determination under
Defense Production Act, 1950, as
amended, that award is in interest
of mobilizing Nation's productive
capacity or national defense program
capacity or national defense pro-
gram, even though bids are first
solicited and said negotiation with
small business concern results in
higher price than otherwise obtain-
able..

Where pursuant to sec. 714 (f) (2) of
Defense Production Act of 1950, as
amended, joint determination is
made by Small Defense Plants Adm.
and contracting procurement agency
that award of contract to small
business concern is in interest of
mobilizing Nation's full productive
capacity or national defense pro-
gram, procuring agency properly
may contract with small business
concern at higher price than other-
wise obtainable, but only to extent
determined necessary to give small
business concerns fair proportion of
total of Govt. purchases and con-
tracts..

Security furnishing deficiencies.-Armed
Services Procurement Act of 1947 and
Armed Services Procurement Regs., pro-
viding that award of contracts shall be
made to responsible bidder whose bid
conforms to invitation for bids, are not
intended to deprive Govt. contracting
officers of right to waive informalities in
bids, however, correction of deficiency
in failing to furnish bid bond should be
permitted only after investigation which
establishes clearly that deficiency was
due solely to oversight or some other ex-
cusable cause and not due to contractor's
inability to obtain bid bond because of its
financial status or some similar reason..

BONDS-Continued

Government:

Savings bonds:

Purchase by payroll deductions:
Salary receipt form-proposed use of
blanket form of receipt for salary
and release from claim in purchase of
U. S. Savings Bonds by employee
in name of another person through
payroll deductions will furnish ade-
quate acquittance to Govt. for pay-
ment to employee of portion of his
salary represented by payment in
bonds and eliminate receipt for sal
ary now required each time bond is
issued. 21 C. G. 942, modified
Status as unpaid compensation—al-
though person who is continued on
rolls of agency without Presidential
extension after reaching compulsory
retirement age occupies status of
de facto employee and may retain
compensation actually paid, such
person is not entitled to refund of
deductions for savings bonds, which
represents unpaid compensation for
de facto period; neither does said per-
son accrue annual leave during de
facto period so as to be entitled to
lump-sum payment...

Surety:

Liability-bidder's failure to execute for-
mal contract-liability of bidder and his
surety on bid bond accompanying bid
is fixed upon bidder's refusal to enter
into formal contract tendered it, even
though contract by its express term was
not binding until formally approved by
higher authority....
Subrogation:

Sureties rights v. U. S. set-off rights.—
rights of sureties, who complete work
of defaulting contractor, to retained
percentages and unpaid progress esti-
mates earned by contractor prior to
default are derived primarily from
sureties subrogation to rights of con-
tractor and are inferior to Govt's.
right of set-off for independent debt of
contractor however, Govt. may by
agreement reimburse surety for com-
pletion costs out of such funds..

Military, naval etc., personnel:

Enlistment allowance. See Gratuities,

Page CERTIFICATES:

5

262

477

103

Retroactive compensation payments:
Employees in military service-certificate
of military establishment furnishing cur-
rent address of former employee and
evidence that he was in military service
on Oct. 24, 1951, may be accepted as basis
for payment by former employing
agency of any retroactive compensation
increase which may be due, under Clas-
sification Act of 1949, as amended to
employee who was separated from his
position subsequent to effective date of
act for purpose of entering military
service....

Retired personnel-certificates of Civil
Service Com. furnishing addresses of
retired employees and evidence that
they were on retirement rolls on Oct 24,
1951, are not required in support of pay.
ments of retroactive compensation in
creases, under Classification Act of 1949,
as amended, to employees who were
retired subsequent to effective date of
act, in cases where determination of such
facts may be made upon basis of admin-
istrative records..
Vouchers invoices etc.-vendor's certif-

icate-open-market purchases-where
open-market purchases not in excess of
$500 are not based upon quotations prior
to purchase it is sufficient that payment
Vouchers be accompanied by simplified
vendor's certificate approved by Comp
troller General May 1. 1950 29 Comp.
Gen. 574, which eliminates requirement
of certificate by vendor that prices claimed
are not in excess of those charged general
public...

CERTIFYING OFFICERS:

Liability-relief. See Certifying Officers,
relief.
Relief:

Certification based upon erroneous official
records-certifying officers who errone-
ously certify vouchers resulting in over-
payments of compensation to former
employees may not be relieved from
responsibility for overpayment by plac-
ing of caveat against funds to former
employees credit in Civil Service Retire-
ment and Disability Fund which are in
excess of overpayment however, where
such officers did not know and by rea-
sonable diligence and inquiry could not
have ascertained that overpayments
were involved relief for erroneous certi-
fications may be granted under provi-
sions of sec. 2 of act of Dec. 29, 1941.....
Debt satisfaction by caveat against debtor's
retirement funds-certifying officers who
erroneously certify vouchers resulting in
overpayments of compensation to former
employees may not be relieved from
responsibility for overpayment by plac-

CERTIFYING OFFICERS-Con.
Relief-Continued

ing of caveat against funds to former
employees credit in Civil Service Re-
tirement and Disability Fund which
are in excess of overpayment however,
where such officers did not know and by
reasonable diligence and inquiry could
not have ascertained that overpayments
were involved relief for erroneous certi-
fications may be granted under provi-
sions of sec. 2 of act of Dec. 29, 1941...
Error detection requirement-lack of dili-
gence and inquiry-failure to obtain
advance Comptroller Genera` decision-
certifying officer who accepted advice
and instruction of administrative officer
in making payment for annual leave
erroneously credited employee rather
than exercise right granted under sec. 3
of act of Dec. 29, 1941, to apply to Comp-
troller General for decision on doubtful
question of law which would have pro-
tected him from unlawful payment may
not be relieved of responsibility under
sec. 2 of act for erroneous payment on
basis that he did not know or by exercise
of reasonable diligence and inquiry could
not have ascertained actual facts....

Page CLAIMS-Continued

17

653

790

773

Assignments-Continued
Contracts-Continued

through loans or direct purchase and
resale that loaned money to con-
tractor to assist in performance of
Govt. contract may be considered
proper assignee under Assignment of
Claims Act of 1940, and therefore,
entitled to receive amounts to become
due under contract which have been
assigned to said partnership.............
Set-off. See Set-off, contract payments,

assignment.

Burden of proof. See Claims evidence to
support.

Evidence to support-claimant's respon-
sibility-carrier, submitting claim for addi-
tional transportation charges on shipment
of cartridges and small arms, who is unable
to furnish check number or other data
sufficient for administrative office to
identify payment record fails to meet
burden of proof placed upon it as claimant
to furnish evidence satisfactorily establish-
ing its claim and therefore, said carrier
may not be allowed additional charges
claimed in supplemental bill...--------
Settlements. See General Accounting Office,
settlements.

CLASSIFICATION:

Allocation or reallocation of positions:
Salary changes:

Higher grades:

Inasmuch as allocations or realloca-
tions of positions to higher grades
are considered promotions within
purview of sec. 802 (b) of Classifica-
tion Act of 1949, employee whose
position is reallocated to higher grade
is entitled to have his salary rate
fixed at lowest rate in higher grade
which exceeds his previous rate in
lower grade from which advanced by
at least one step....
Employees subject to Classification
Act of 1949 occupying non-competi-
tive positions which are reallocated
upward to next higher grade-there
being no positions in normal
lines of promotions in grades im-
mediately below those of reallocated
position are not precluded by sec.
1310 (c) of Supplemental Appro. Act
of 1952-commonly referred to as
Whitten Rider-from receiving com-
pensation applicable to reallocated
positions, even though less than one
year has elapsed since employees
received promotions to respective
positions...

Periodic within-grade advancement
waiting period--employee whose posi-
tion was tentatively allocated to
higher grade, later allocated by cen-