COMPENSATION-Continued
Rates Continued

Limitations-Continued

Oct. 24, 1951, has effect of causing such
employees to receive compensation in
excess of $900 per annum, limitation
prescribed for excepting their positions
from competitive system, such excess
is not to be considered as depriving
employees of retroactive increase in
compensation authorized by amenda-
tory act-
New appointees:

Minimum rate of grade requirement:
All new appointments made to posi-
tions covered by Classification Act
are required to be made at minimum
rate of compensation established for
such positions, and therefore, in-
dividual who received new appoint-
ment to position under act at rate
of compensation in excess of mini-
mum rate prescribed for position
must refund all amounts received
in excess of said minimum rate....
While appointment to classified
position after separation from prior
Govt. position, either temporary
or permanent, classified or unclas-
sified does not require that appoint-
ment to classified position be con-
sidered new appointment so as to
limit salary rate to minimum rate
of grade service as Christmas tem-
porary substitute in Postal service
for less than one month is not such
service as would render subsequent
appointment to classified position
exempt from sec. 801 of Classification
Act of 1949, which requires new
appointments be made at minimum
rate of appropriate grade..----
Rate in excess of minimum for grade-
refund acquirement--all new appoint-
ments made to positions covered by
Classification Act are required to be
made at minimum rate of compensa-
tion established for such positions,
and therefore, individual who re-
received new appointment to position
under act at rate of compensation in
excess of minimum rate prescribed
for position must refund all amounts
received in excess of said minimum
rate...
Panama Canal pilots-in view of organi-
zational changes transferring certain
former personnel of Panama Canal, in-
cluding Panama Canal pilots, to Pan-
ama Canal Co. and holding of Civil
Service Com. that such pilots are now
excluded from provisions of Classifica-
tion Act of 1949 by sec. 202 (20), Panama
Canal pilots are not to be considered
vessel employees within meaning of
sec. 102 (d) of Federal Employees Pay

Page COMPENSATION-Continued

314

177

204

177

Rates-Continued

Act of 1945, as amended, and therefore
are subject to overtime compensation
provisions of 1945 act......

Postal service. See Compensation, Postal
Service, rates.

Reallocation of position-simultaneous
within-grade advancement-employee
whose position is reallocated to higher
grade on same date he becomes eligible
for within-grade advancement under
provisions of sec. 701 (a) of Classification
Act of 1949, as amended, is entitled to
have said within-grade advancement
included in his existing rate of basic
compensation in fixing under sec. 802 (b)
his basic rate of compensation for higher
grade......

Transfer, promotion, demotion, reinstate-
ment, etc.:

Administrative discretion-initial salary
rate of employee in classified position
to which transferred, promoted, de-
moted, reinstated, or reemployed
may be fixed by administrative office
at any rate above minimum of grade
that does not exceed highest salary
rate previously received in any prior
Govt. position, and therefore, de-
moted employee whose salary was
reduced by administrative office to
match salary rate of other employees
holding similar positions is not en-
titled to additional amount regardless
of reason for administrative determi-
nation.....

Correction of administrative error-there
is no vested right in employee upon
reemployment to receive highest
salary rate previously paid to him,
and therefore correction of adminis-
trative error made in fixing salary of
employee upon reemployment at lower
rate than highest salary rate previously
held by such employee can be accom-
plished only by administrative action
and upon showing that administrative
error was in fact made in fixing original
salary rate upon reemployment......
Promotion restrictions:

Reduction in force actions-employee
who, after receipt of reduction in
force notice and prior to expiration
of notice period, resigns and is re-
employed by another agency or is
transferred to position in another
agency, in lower grade may be re-
stored to position in grade held by
him prior to receipt of said notice
without violating promotion re-
strictions of sec. 1310 (c) of Supp.
Appro. Act, 1952....

Page

87

62

367

15

COMPENSATION-Continued

Rates Continued

Transfer, promotion, demotion, reinstate-
ment, etc.-Continued

Promotion restrictions-Continued
Service in grade requirement:

Provisions of sec. 1310 of act of Nov.
1, 1951, providing that no person
in any executive department or
agency whose position is subject
to Classification Act of 1949, as
amended, shall be promoted or
transferred to higher grade subject
to such act without having served
at least 1 year in next lower
grade, is effective from beginning
of day of approval, since exact
hour of signing of act cannot be
ascertained with any degree of
exactness, and therefore, promo
tion of employee effective at
beginning of business on Nov. 1,
1951, is subject to restrictions con-
tained in cited act..
Under provisions of sec. 1310 (c)
of Supplemental Appro. Act,
1952, prohibiting promotion or
transfer of any person whose
position is subject to Classifica-
tion Act of 1949, as amended, to
higher grade under act unless he
has served at least one year in
next lower grade or is within reach
for appointment to higher grade
position on competitive civil
service register, persons with prior
service in such positions who have
not completed required period in
grade when reached for appoint-
ment to higher grade position of
attorney on non-civil service
register, established by Federal
Trade Com., may not be ap-
pointed to higher grade..
Two grade promotion limitation-em-
ployee who received personnel
action purporting to promote her
from grade GS-4 to GS-5, contingent
upon removal of appropriation pro-
motion restriction, and who, upon
removal of said restriction but sub-
sequent to effective date of Civil
Service Com. Reg. limiting promo-
tions to two grades, was promoted
to grade GS-7, received promotion
of more than two grades in con-
travention of said regulation, and
therefore, salary payments at rate
for GS-7 grade may not be made
to employee....
Rate in prior position as basis--temporary
Christmas employment in Post Of-
fice-while appointment to classified
position after separation from prior
Govt. position, either temporary or
permanent, classified or unclassified,

Page COMPENSATION-Continued

305

205

487

Rates-Continued

Transfer, promotion, demotion, reinstate-
ment, etc.-Continued

does not require that appointment to
classified position be considered new
appointment so as to limit salary rate
to minimum rate of grade, service as
Christmas temporary substitute in
Postal service for less than one month
is not such service as would render
subsequent appointment to classified
position exempt from sec. 801 of Clas-
sification Act of 1949, which requires
new appointment be made at mini-
mum rate of appropriate grade......................
Simultaneous promotion and within-
grade advancement-employee who is
promoted to higher grade on same
date becomes eligible for within-grade
advancement under provisions of sec.
701 (a) of Classification Act of 1949, as
amended, is entitled to have said
within-grade advancement included
in his existing rate of basic compensa-
tion in fixing under sec. 802 (b) his
basic rate of compensation for higher
grade......

Unclassified position changed to classi-
fied-saved compensation-employee
whose unclassified position was clas
sified under Classification Act of 1949
in grade with no longevity step and
whose rate of pay, which was above
maximum scheduled rate of grade, was
saved under sec. 1105 (b) of act, is not
entitled to salary adjustment under sec.
1 (b) of increased compensation amend-
ment of Oct. 24, 1951, to act; however,
as employee's saved salary is less than
new maximum scheduled rate estab-
lished by said amendment for grade he
is entitled from effective date thereof, to
be advanced to higher salary step under
within-grade promotion provisions of
sec. 701 of act, as amended.
Veterans Administration medical per-
sonnel-under sec. 4 (a) of Classifica-
tion Act of 1949, as amended, increasing
salary rates provided by act of Jan. 3,
1946, for officers and employees in Dept.
of Medicine and Surgery, Veterans
Adm. by 10 percent subject to minimum
and maximum dollar increases pre-
scribed by act, new compensation rates
for each grade should be established by
adding to each step within grade an
amount equal to 10 percent of minimum
rate for each grade or prescribed dollar
minimum or maximum as case may be.
Wage-board, etc., employees-leave, train-
ing, and other non-productive work
period-proposed wage incentive system,
which includes plan for establishing
rate to be paid for sick, annual, and

COMPENSATION-Continued

Rates Continued

terminal leave, holidays, training and
conference periods and other non-pro-
ductive work, for wage board employees
of naval supply activities, is not in con-
travention of sec. 202 (7) of act of Oct.
28, 1949, relating to compensation of
employees subject to wage boards or
other wage-fixing authorities and,
therefore, system may be adopted with-
out obtaining prior legislative authority.
Reduction-reduction in force demotion-
retroactive salary adjustment-transfer by
employee to position in lower grade, to
avoid separation by reduction in force,
does not constitute removal from service
within "back pay" provisions of act of
Aug. 24, 1912, as added by act of June 10,
1948, so as to entitle said employee to dif
ference in salary between position held
prior to transfer and lower grade position
to which transferred..........

Salary tables:

Executive branch of Government:

40, 44, and 48 Hour Week:

Circ. letter B-50870, Oct. 23, 1951...
Circ. Letter B-50870, Nov. 1, 1951...
Selective Service registrants-salary losses in
complying with draft board orders-
appropriation availability-employee of
Military Sea Transportation Service who
was unable to sail on his assigned vessel
due to local selective service draft board
ordering him to remain in U. S. pending
physical examination is not entitled to
compensation lost as result of such action,
there being no law making appropriated
funds available for payment of compensa-
tion losses sustained by selective service
registrant as result of compliance with
order, valid or otherwise of local draft
board..

Separation from service. See, also, Com-
pensation, discharges and dismissals.
Strikes against Government. See Officers
and Employees, striking against Govern-

ment.

Sundays and holidays. See Sundays and
Holidays, compensation.
Suspension from duty:

Compensation for period of unjustified
suspension:

Deductions for outside earnings-dis-
position in making payment of com-
pensation for periods of employee's
unjustified suspension from service
under act of Aug. 24, 1948, as amended
by act of June 10, 1948, deductions for
earnings through other employment
during period involved are not for
transfer to miscellaneous receipts but
should remain to credit of salary ap-
propriation from which payment is
made...

Leave without pay status-pending
action on employee's retirement re-
quest-back pay provisions of act of
June 10, 1948, which authorizes pay-
ment of compensation to employee
who has been removed or suspended
from service upon restoration or re-
instatement on grounds that such re-
moval or suspension was unjustified
or unwarranted-are concerned pri-
marily with those cases where charges
arise out of employee's conduct, and
therefore, employee who is placed on
leave without pay pending action on
disability retirement application is not
entitled, upon restoration to duty, to
benefits of said act, even though
employee may have been separated
from service in error prior to approval
by Civil Service Com. of his request
for retirement...........
Transfers-obligations of agencies between
which transfer occurs-retroactive salary
payments-employees in positions subject
to increased compensation amendment to
Classification Act of 1949 who transferred
from one agency to another, or from one
bureau to another within same department
operating under separate appropriations,
between effective date of said amendment
and date of its approval are to receive their
retroactive payments from agency or
department authorized to obligate appro-
priations or funds which were charged with
employee's salaries during period in-
volved...

Travel time-overtime compensation. See
Compensation, overtime, travel time.
Wage-board, etc., employees:

Leave, training, and other non-productive
work periods-proposed wage incentive
system, which includes plan for estab-
lishing rate to be paid for sick, annual,
and terminal leave, holidays, training
and conference periods and other non-
productive work, for wage board em
ployees of naval supply activities is not
in contravention of sec. 202 (7) of act of
Oct. 28, 1949, relating to compensation
of employees subject to wage boards or
other wage-fixing authorities and, there-
fore, system may be adopted without
obtaining prior legislative authority....
Sundays and holidays. See Sundays and
Holidays, compensation.

Page

654

166

519

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 Ad-
ministrative Services Act, 1949.
upon proper determination by
Agency head that award is neces-
sary in public interest or when such
action is supported by determina-
tion under Defense Production Act,
1950, as amended, that award is in
interest of mobilizing Nation's pro-
ductive capacity or national defense
program, even though bids are first
solicited and said negotiation with
small business concern results in
higher price than otherwise obtain
able..

Where invitation for bids provides
that after proposals are received
negotiations will be conducted with
three lowest bidders to determine
final conditions, price, etc., notice to
proceed issued to lowest bidder be
fore any negotiations were held with
authorized representatives of bidder
consitituted no more than firm offer
on part of Govt. to award contract
to that bidder at price stated in
proposal, and therefore, said offer
must be accepted without qualifica-
tion by bidder in order for contract
to be consummated..

Armed Services Procurement Act of
1947:

In view of sec. 2 (c) (1) of Armed Serv-
ices Procurement Act of 1947, au-
thorizing negotiation of contracts
without advertising when deter-
mined by Agency head to be neces-
sary in public interest during period
of national emergency, and fact that
such emergency was proclaimed by
President on Dec. 16, 1950, military
establishments may award con-
tracts for supplies and services at
prices other than lowest which might
be obtainable, upon proper deter

Page CONTRACTS-Continued
Awards-Continued

647

347

378

Negotiation-Continued

Armed Services Procurement Act of

1947-Continued

mination that award is necessary in

public interest..............
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 Ad-
ministrative 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 ca-
pacity or national defense program,
even though bids are first solicited
and said negotiation with small
business concern results in higher
price than otherwise obtainable.....
Federal Property and Administrative
Service Act of 1949-contracts may be
awarded to small business firms by
negotiation, under sec. 2 (c) (1) of
Armed Services Procurement Act,
1947, and under sec. 302 of Federal
Property and Administrative Services
Act, 1949, upon proper determination
by Agency head that award is neces-
sary 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,
even though bids are first solicited
and said negotiation with small busi
ness concern results in higher price
than otherwise obtainable.
Small business concerns:
Authority contained in sec. 714 (f) (2)
of Defense Production Act of 1950,
as amended, to negotiate contracts
with small business concerns re
quires that separate joint deter-
mination be made by Small Defense
Plants Adm. and contracting pro-
curement agency for each procure-
ment and does not permit blanket
determinations, based on general
formulas or price differentials which
could control award of future con-
tracts without further regard for
facts and circumstances involved in
each particular procurement........
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

CONTRACTS-Continued
Awards-Continued

Negotiation-Continued

Armed Services Procurement Act of
1947-Continued

proper determination by Agency
head that award is necessary in
in public interest or when such ac-
tion 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 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 busi-
ness concern is in interest of mobiliz-
ing Nation's full productive capacity
or national defense program, pro-
curing agency properly may contract
with small business concern at
higher price than otherwise obtain.
able, but only to extent determined
necessary to give small business
concerns fair proportion of total of
Govt. purchases and contracts......

To other than lowest bidder. See Bids,
acceptance or rejection, acceptance of other
than lowest.
Cancellation. See Contracts, termination.
Damages:

Actual-additional liquidated damage lia-
bility-where construction contractor de-
faulted under contract containing Stand-
ard Delays-Damages clause providing
liquidated damages for delays in comple-
tion of contract in event Govt. did not
terminate contractor's right to proceed,
but specifications provided for liqui-
dated damages until completion by con-
tractor or replacing contractor and that
such provision would not prevent Govt.
from terminating right of contractor to
proceed, Govt. is entitled, upon termi-
nation of contract and award to replacing
contractor, to liquidated damages from
time work was required to be completed
until it was completed by replacing con-
tractor, plus excess cost of completion
under replacing contract.
Delays:

Government activities, priorities, etc.-
relief under Defense Production Act
of 1950-relief from damages or penal-
ties for any act or failure to act ac-
corded by sec. 707 of Defense Produc-
tion Act of 1950 is available only to
person whose alleged liability is direct

Page | CONTRACTS-Continued
Damages-Continued

347

431

428

Delays Continued

or indirect result of his own compli-
ance with rule, regulation, or order
issued pursuant to act, so that Govt.
contractor whose delay or other
default in performance of contract was
caused by delays of a supplier or sub-
contractor, who was unable to make
timely delivery of material due to
other orders with a preferential pri-
ority is not entitled to an extension of
time under said section..............
Not fault of contractor-relief under De-
fense Production Act of 1950-relief
from damages or penalties for any act
or failure to act accorded by sec. 707
of Defense Production Act of 1950 is
available only to person whose alleged
liability is direct or indirect result of
his own compliance with rule, regula-
tion, or order issued pursuant to act
so that Govt. contractor whose delay
or other default in performance of
contract was caused by delays of a
supplier or subcontractor who was
unable to make timely delivery of
material due to other orders with a
preferential priority, is not entitled to
an extension of time under said section.
Government activities, priority system,
etc.-National Production Authority re-
strictions-contractor who, due to Na-
tional Production Authority restriction
upon use of certain material in manu-
facture of equipment, is unable to furnish
type of equipment contracted for may
not be permitted to substitute different
kind of material than required by con-
tract specifications; however, contractor
is not liable for damages resulting from
compliance with Govt. restriction and
contract should be canceled....................
Liquidated:

Additional excess cost liability—where
construction contractor defaulted un-
der contract containing Standard
Delays-Damages clause providing
liquidated damages for delays in com-
pletion of contract in event Govt. did
not terminate contractor's right to
proceed, but specifications provided
for liquidated damages until comple-
tion by contractor or replacing con-
tractor and that such provision would
not prevent Govt. from terminating
right of contractor to proceed, Govt.
is entitled, upon termination of con-
tract and award to replacing contrac
tor, to liquidated damages from time
work was required to be completed
until it was completed by replacing
contractor, plus excess cost of com-
pletion under replacing contract................
Remission-Comptroller General's au-
thority-authority conferred upon

Page

408

408

186