CONTRACTS-Continued.

Labor stipulations-Continued.
Eight-Hour Law-Continued.
Penalties-effect of failure to pay over-
time rates-where a War Dept. con-
tract properly includes provision for
a penalty for each violation of Eight-
Hour Law of 1912, as amended by
sec. 303, act, Sept. 9, 1940, unless con-
tractor's laborers and mechanics are
paid time and one-half for all hours
worked in excess of 8 hours per day,
authority to withhold from contract
price amount due as penalties is vested
in the Govt. as a matter of contractual
right, and there is no legal authority
to refrain from assessment and collec-
tion of such amount..

Supply contract requirements:

Applicability:

Labor Dept. determination accept-

ance...

Manufacture of articles from Govern-
ment-owned material-since admin-
istration of Walsh-Healey Act is
vested in Labor Dept., and in view
of doubt whether contracts for man-
ufacturing articles from Gov't-
owned materials, except for certain
incidentals, are for "manufacture"
of supplies subject to provisions of
act or are for "services" and thus
exempt, such contracts will not be
questioned by G. A. O. by reason
of inclusion of provisions of act
pursuant to determination by Labor
Dept. that it is applicable..............
Wage underpayments:
Claims of unpaid laborers, materialmen,
etc. See Contracts, payments, claims
of unpaid laborers, materialmen, etc.
Contract payment-withholding and re-
lated matters. See Contracts, pay-
ments, withholding, wage underpay-
ments.

Mistakes-bids. See Bids, mistakes.
Modification:

Extent to which authorized:

Contracting officer may make changes in
contract price under Art. 3, Standard
Form of Contract No. 23 (Construc-
tion), only when specifications are so
modified as to alter contractor's obliga-
tions under contract..
Contracting officers may modify or
amend existing contracts, and such
modifications or amendments may in-
clude provisions for increasing pay-
ments to contractors, if interest of
U. S. will be served thereby, but such
action presupposes some new con-
sideration moving to U. S. as result of
modification or amendment....
Freight rate changes-while provision, as
now worded, in certain U. S. Army,
Panama Canal Dept., contracts and
contracts of The Panama Canal may not
be construed to justify adjustments in

Page CONTRACTS-Continued.
Modification-Continued.

contract prices for fluctuations in freight
rates applicable to deliveries by con-
tractors to Canal Zone on other than
vessels of Panama R. R. Steamship Line,
contracts may be modified, prospec-
tively effective, to extend adjustments
to other vessels in order to obviate delays
from shipping facility congestion................
Government agents' authority in general--
authority vested in Sec. of Navy by sec.
9, act, June 28, 1940, to modify "existing
contracts," or his general authority to
modify contracts in interest of U. S.,
does not include authority to modify
contract by inserting provisions which
would not be legal and proper as original
provisions in contract..

Scope of special Navy Department author-
ity-authority vested in Sec. of Navy by
sec. 9, act, June 28, 1940, to modify "ex-
isting contracts" appears to relate to
contracts in existence at time of approval
of said act....

Written notice in lieu of formal contract
amendment-in view of certification by
Sec. of War that aluminum is not domes-
tically produced in quantities sufficient
to meet the needs of defense program,
the War Dept. may, with respect to
aluminum, waive by written notice to
contractors in lieu of formal contract
amendments the domestic origin stipu-
lations, incorporated pursuant to act,
Mar. 3, 1933, in existing contracts, and
payments under such contracts will not
be questioned for deliveries of alumi-
num of foreign origin on and after date of
Secretary's certificate.....
Multiple. See Contracts, awards.
Navy Department:
Modification:

Scope of Secretary's authority:
Authority vested in Sec. of Navy by
sec. 9, act, June 28, 1940, to modify
"existing contracts" appears to re-
late to contracts in existence at time
of approval of said act....
Authority vested in Sec. of Navy by
sec. 9, act, June 28, 1940, to modify
"existing contracts," or his general
authority to modify contracts in
interest of U. S., does not include
authority to modify contract by in-
serting provisions which would not
be legal and proper as original pro-
visions in contract...

Negotiation. See Contracts, awards, negotia-
tion.

Numbering-defense-aid expenditures-Circ.
Letter A-51601, June 3, 1942.......
Offer and acceptance:

See, also, related heading: Contracts,
awards.

Formal contract execution non-essential-
ity-acceptance of contractor's proposal
by authorized Govt. contracting officer

does not authorize withholding of pay-
ments to contractors and payment of
claims of laborers, etc., by the Comp.
Gen. therefrom where the contractor has
failed to make any wage payment to
such laborers, etc....
Withholding:

Wage underpayments:

Authority where no wage payment is
made-Davis-Bacon Act, as amend-
ed, requiring that certain Govt. con-
tracts contain a stipulation that
there may be withheld from contrac-
tor sums sufficient to pay laborers,
etc., "the difference between the
rates of wages required by the con-
tract to be paid
and the

rates of wages received
and not refunded to the contractor
*", does not authorize with-
holding of payments to contractors
and payment of claims of laborers,
etc., by the Comp. Gen. therefrom
where the contractor has failed to
make any wage payment to such
laborers, etc.
Penalty under Eight-Hour Law. See
Contracts, labor stipulations, Eight-
Hour Law, penalties.

Penalties-Eight-Hour Law violations. See
Contracts, labor stipulations, Eight-Hour
Law, penalties.

Personal services-particular types. See
Personal Services.

Price:

Adjustment-freight charges. See Con-
tracts, freight charges.

Tax inclusion. See Taxes.

Page CONTRACTS-Continued.

605

197

197

Price-fixing orders-vendors' certificates on
vouchers and invoices-Circ. Letter A-
51607, A-49009, June 3, 1942...
Prior to appropriation or period for which
made. See Appropriations, obligation.
Profits:

Limitations:

Cost-plus contract matters. See Con-
tracts, cost-plus.

Taxes as element of cost-capitel stock
tax-where contracts which contain a
profit recapture clause are made sub-
ject to administrative regulations
specifically providing that capital
stock taxes may be "taken into ac
count" as an element of cost but that
excessive or unreasonable payments
will not be so taken into account, it is
proper to restrict allowable portion of
capital stock tax to that which is based
on actual net worth of contractor or on
a reasonable rather than inflated-
capital stock valuation....
Quantities. See Contracts, amounts.
Quantum meruit. See Payments, absence or
unenforceability of contracts.
Rental-purchase:

Pre-existing liens:

Application of rental payments in dis-
charge of where motor vehicle ac
quired by Govt. pursuant to a rental-
purchase contract is subject to a prior
lien it would be advisable to provide
in the contract for application of rental
payments first toward discharge of
liens.....

Recapture payments to lienholder:
Authority for-where administrative-
ly determined to be in Govt.'s inter-
est to exercise right of recapture re-
served for its benefit in a cost-plus-
a-fixed-fee contractor's agreement
with its equipment lessor, and, to
obtain clear title, it is necessary to
pay lienholder a sum which exceeds
remaining unpaid balance necessary
for recapture under rental agree-
ment, no objection is required to an
administrative determination to
make such payment to the lien-
holder.......

Page

1162

1103

1059

1059

Lessor's liability-where motor vehicle
acquired by Govt. pursuant to s
rental-purchase contract is subject to
a prior lien in such amount that the
Govt., to obtain clear title, must pay
to lienholder a sum which exceeds
remaining unpaid balance necessary
for recapture under rental-purchase
contract, lessor is liable to Govt. for
such excess; and in future it would
be advisable that such liability be
provided for in the contract.
1050

Specifications:

Automobiles, trucks, tractors, etc. See
Vehicles, purchases.

CONTRACTS-Continued.
Specifications-Continued.

Bidders' qualifications.
qualifications.

See Bidders,

Bond requirements. See Bonds.
Changes-standard forms-in absence of
Federal specification covering heavy-
duty trucks, there may be included in
future specifications for such trucks a
performance, etc., guaranty provision
which is more drastic than general
guaranty provisions included in Federal
Specification No. KKK-T-716 appli-
cable to a different type of truck, if it be
administratively determined that such
provision is necessary in Government's
interest, and provided its inclusion does
not tend to restrict competition unduly
or to increase unnecessarily the cost of
the trucks. 20 C. G. 836, modified..... 1132
Delivery provisions. See Contracts, de-
liveries.

Nonessential price increasing provisions-

requirement in invitations for bids on
heavy-duty trucks that successful bidder
post bond equal to 100 percent of amount
of contract as guarantee that trucks will
conform to specifications and will perform
satisfactorily for one year apparently
would increase unnecessarily the cost
of the trucks, so that such bond should
not be required unless there is reason to
believe that successful bidder may be
other than a reputable manufacturer and
that the bond is necessary to protect the
Government's interest...

Preparation-jurisdiction-it is not duty
or function of G. A. O. to draft guaranty
or other provisions of specifications to be
included in contracts covering purchase
of equipment or supplies......
Price-fixing stipulations-bid rejection.
See Bids, rejection, price-firing, labor,
etc., stipulations.

1132

1132

Restrictive jurisdiction-it is duty and
responsibility of G. A. O. to determine
whether specifications which have been
drafted by administrative departments
are unduly restrictive of competition or
otherwise unauthorized-such question
being one that goes to legality of con-
tracts and uses of appropriated moneys.. 1132
Splitting of work among several bidders:
If radiosondes are not now manufactured
extensively, there is no objection to
Weather Bureau securing considerable
quantity required immediately under
one item of advertisement for bids by
award of contract to more than one
bidder if all bidders are offered equal
opportunity to supply both immediate
need and prospective need indicated
under another item of advertisement..
In order to avoid possible interruption in
deliveries of radiosondes by single con-
tractor chosen under advertising-for-
bids requirements of sec. 3709, R. S.,
bids may be requested by Weather
470350m-42-79

56

Splitting of work among several bidders-
Continued.

Bureau under one item for supplying,
within limited period, all or any part
of specified quantity of radiosondes
sufficient to take care of any exigency
that might arise, and under another
item for supplying remainder of re-
quirements over fiscal year.
Symbols-defense-aid expenditures-
Letter A-51601, June 3, 1942.

Circ.

Wage stipulations. See Contracts, labor stip-
ulations.

CONVENTIONS, ASSOCIATIONS, ETC.:
Attendance by part-time personnel-official
duty status-whether attendance at con-
ventions by part-time professional em-
ployees of Dist. of Col. is to be regarded
as placing employees on official duty
during period of attendance is for deter-
mination by Dist. of Col. commissioners.
COORDINATOR OF INFORMATION:
See Office of Coordinator of Information.
CORPORATIONS:

Government:

Applicability of general departmental ap-
propriation restrictions-decisions to
effect that funds derived from operation
of Virgin Islands Co. are subject, gen-
erally, to same restrictions and limita-
tions applicable to expenditures of ap-
propriated funds by regularly estab
lished Govt. agencies should be limited,
in view of Congressional recognition of its
corporate status, to cases involving
specific statutory restrictions or limita-
tions upon use of appropriated moneys.
Incorporation, etc., expenses:
Appropriation availability:
Express authority granted Office of
Coordinator of Inter-American Af-
fairs by act of Dec. 17, 1941, to create
corporations for carrying out its
program includes authority, within
available appropriations, to employ
such means and to make such ex-
penditures as may be necessary to
accomplish that end, and, therefore,
payment is authorized of organiza-
tional expenses incident to incor-
poration, including expense of serv-
ices of resident agents where re-
quired.....

In view of sec. 3678, R. S., restricting
expenditures from appropriations
solely to objects for which made,
expenditures incident to creation of
corporations by Govt. agencies, in
absence of express statutory author-
ity therefor, or authority necessarily
implied when creation of corpora-
tions is only possible means of
carrying out a statutory duty, are
unauthorized....

COURTS:

Clerks collections-fees-appearance of at-
torney for person in military service-pro-
visions of Soldiers and Sailors Civil Relief
Act of 1940 relating to court appointment
of attorneys to represent defendants absent
in the military service modify the re-
quirements of sec. 3, act, Feb. 11, 1925,
with respect to the payment of fees in
U. S. courts, to the extent of authorizing
such attorneys to file their appearance on
behalf of the absent defendants without
paying the fees, so that the clerks of U. S.
courts will not be required to account for
appearance fees not collected in such
cases....

Costs:

667

U. S. Dist. Ct. judge has no authority
under act of July 20, 1892, as amended,
relating to actions in courts by poor
persons, to order payment by U. S.
of costs of taking testimony on behalf
of a poor defendant by deposition of
absent witnesses, nor may he au-
thorize the advance of public funds
to prepay such costs with subsequent
reimbursement by the defendant...
U. S. may pay costs of taking deposi-
tions on behalf of poor defendant in
U. S. court where witness could be
compelled to appear pursuant to
sec. 878, R. S..

District of Columbia inferior:

Judges:

Election as to retirement system appli-
cable:

347

347

1139

If judge of Municipal Court, Muni-
cipal Court of Appeals or Juvenile
Court of Dist. of Col. elects to accept
retirement benefits authorized for
judges of such courts by sec. 11 (a),
act, Apr. 1, 1942, he will have relin-
quished his right to retirement bene-
fits under Civil Service Retirement
Act of 1930, as amended-a claim for
retirement deductions under latter
act to be regarded as such an elec-
tion....
Provisions of sec. 11 (a), act, Apr. 1,
1942, establishing retirement system
for judges of Municipal Court,
Municipal Court of Appeals and the
Juvenile Court of Dist. of Col., are
not mandatory but merely grant
said judges privilege of electing to
receive benefits therein provided,
and until such election is made, said
judges are not "subject to another
retirement system" so as to exclude
them from benefits of Civil Service
Retirement Act of 1930, as amended,
to which they are otherwise entitled. 1139

Jurors:
Fees:

Compensation deduction of Federal em-
ployees:

Page

1148

In absence of reimbursement for trans-
portation, etc., expenditures re-
quirement in sec. 3, act, June 29,
1940, that jury fees received by Fed-
eral employee from State court be
credited against compensation pays-
ble by U. S., is applicable to jury
fees received by postal employee who
performed jury service in State court
during "lay-off" period, during
which he received regular compensa-
tion, and who, in view of State law,
was not otherwise reimbursed for
expenditures from personal funds for
transportation and subsistence en
route to answer jury summons...... 11
Postal employee serving during "lay-
off" period-requirement in sec. 3,
act, June 29, 1940, that jury fees re-
ceived by Federal employee from
State court be credited against com-
pensation payable by U. S., is appli-
cable to jury fees received by postal
employee who performed jury serv-
ice in State court during "lay-off"
period, during which he received
regular compensation, and who, in
view of State law, was not otherwise
reimbursed for expenditures from
personal funds for transportation
and subsistence en route to answer
jury summons..
Postmaster's hiring of substitutes-re-
port of absence on jury service in
State courts should be required of
third and fourth-class postmasters,
and such postmasters should account
for amount received from State for
such jury service to extent it is not
in excess of compensation payable to
him by U. S.; however, he should
receive credit for an amount equiva-
lent to that necessarily expended in
conducting affairs of his office dur-
ing his absence, provided that such
credit shall not exceed amount paya-
ble to him by U. S. as compensation
for period in question........
Postmaster's payments of net Federal
compensation-in connection with
provision of act of June 29, 1940, for
crediting against compensation of
Federal employees amounts received
for jury service in State courts, post-
masters may be administratively in-
structed to pay net amounts due
postal employees absent on account
of such service and to show on re-
verse side of pay vouchers pay roll
information required by 20 Comp.
Gen. 279 as to days of service as
juror and daily fee paid; amount
received from State; etc...-----

291

COURTS-Continued.

Jurors-Continued.

Leaves of absence. See Leaves of absence,
court.

Postmasters' status as U. S. employees-

term "any employee of the United
States" as used in act of June 29, 1940,
relating to leave and compensation dur-
ing jury service of Govt. employees, in-
cludes postmasters of all classes....
Status of expense of taking depositions as
"costs" or "fees"-expense of taking and
transcribing depositions of absent wit-
nesses is item of "cost" rather than "fee".
Suits. See Suits.

CREDIT CARDS:

See Cards, credit.

CUSTOMS SERVICE:

Duties. See Duties.

DAMAGES:

See Contracts, damages; Property, private,
damage, loss or destruction.

DEATH COMPENSATION:

See Compensation, death compensation.

DEATH GRATUITIES:

See Gratuities.

DECISIONS:

General Accounting Office. See General Ac-
counting Office, decisions.

DELEGATION OF AUTHORITY:
Administrative officers:

Parachute duty designation-since act,
June 3, 1941, providing additional pay
for parachute duty, requires head of
dept. to designate duty which shall con-
stitute parachute duty, proposed regu-
lation which leaves such designation to
commanding officers constitutes unau-
thorized delegation of authority and is
not compliance with statute.
Transportation of household effects:
Effect of authority of subordinate offi-
cers to authorize travel expenses-act
of Feb. 21, 1942, providing for payment
of travel expenses of transferred civilian
employees of War and Navy Depts.
and Coast Guard when authorized in
orders directing travel by such re-
sponsible officer as head of department
concerned may designate, makes no
change in requirement of act of Oct.
10, 1940, that authorization or approval
of payment of expenses of transporta-
tion of household goods, ete., of such
employees be by head of department..
General rule:

Act of Oct. 10, 1940, and Executive
regulations thereunder, with respect
to transportation of household effects
etc., of civilian employees upon
permanent change of station when
"specifically authorized or approved
by the head of the department or
establishment concerned", vests in

Page DELEGATION OF AUTHORITY-Con.
Administrative officers-Continued.
Transportation of household effects-Con.
General rule-Continued.

191

347

43

921

such heads a discretionary power

that cannot be delegated, and, there-
fore, approval of claims for payment
of such expenses by Adjutant Gen-
eral "By direction of the Secretary
of War" must be preceded by an
actual determination by the Secre-
tary in each instance..

The authorization or approval by head
of department required by act, Oct.
10, 1940, and Executive regulations
thereunder, as a condition to pay-
ment of expenses of transporting
household effects, etc., of employees
upon permanent change of station
need not be in the order directing
the change, so that the Sec. of War
may empower subordinates to exe-
cute individual authorizations for
the transportation expense, subject
to subsequent approval by him of
consolidated schedules or lists of
such authorizations, photostatic or
certified copies of which attached to
vouchers or claims will be acceptable
to this office...

DEPARTMENTS

MENTS:

AND

Administrative officers:
Authority:

ESTABLISH-

Authority to administer a statute as
authority to decide questions of law-
authority to administer the provisions
of a statute does not carry with it the
power finally to determine disputed
questions of law as to the construction
of the statute being administered.....
Prescribing of mode of travel-an
administrative officer, vested with
authority to direct travel of Govt.
employees, may order such travel by
Govt. transportation in lieu of com-
mon carrier....

Decentralization:

Authority for-only authority for removal
of departmental services of Federal agen-
cies and their personnel from Dist. of
Col. is that contained in appro. "Emer-
gency Fund for the President", Inde-
pendent Offices Appro. Act, 1942.....
Continuance of departmental status-
words "in the District of Columbia"
appearing in Classification Act of 1923,
and subsequent amendments, in connec-
tion with words "departmental service"
do not limit jurisdiction of Civil Service
Commission under classification act to
departmental positions located within
geographical limits of Dist. of Col., and,
therefore, the jurisdiction and allocating
authority of the Commission continues
over positions in departmental offices
transferred to locations outside of the
District..

Page

921

921

226

116

915

649