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B-199567 1 (1980-07-24)

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     e[ tel OMPTROLLER GEwnAL. OF TWEUITED STATES3
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B- 199567


July 24, 1980


The honorable-Ronald Il. Mottl
Chairman, Subcommittee on Special
Investigations
Committee on Veterans Affairs
House of Representatives


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Dear Mr. Chairman:


     You requested our views as
Office of Management and Budget
trator of Veterans Affairs to s
Administration (VA) contracts.
N'ovemlber 20, 1979, and December
and the 0MtB Associate Director
and Labor, respectively, to the
such action.


to the legal authority of the
(OMB) to direct the Adminis-
top work under certain Veterans
At issue are letters dated
26, 1979, from the OMB Director
for Human Resources, Veterans,
VA Administrator directing


     In a written response for the record of a hearing of your
Subcommittee held May 1, 1980, the Director of OB's Office of
Federal Procurement Policy (OFPP) asserted such legal authority.
The OFPP Director's position is based on (1) the authority pro-
vided OIB by 31 U.S.C. 16 to prepare the budget, which includes
the authority to revise, reduce or increase agency appropriation
:requests; and (2) a Presidential nlenorandum dated May 3, 1979,
directing OMB to oversee governme~t-wide efforts to combat
fraud, waste and mismanagement in 1program operations.


     You question whether this action
Intrusion on the autonomy of the Admin.
of the authority peovided by 38 U. S.C.
mihistrator of VA, which includes the
necessary supplies and services.


by  MB is an unwarranted
istrator of VA, in view
210 and 213 to the Ad-
authority to conL:ract for


     The statute upon which the OFPP Direct6trtelies, 31 U.S.C.
16, provides in part as follows:                .1,


   There is in the Executive Office of the
President an Office of Manager.ent and Budget
  * * * The Office, under such rules and
regulations as the President may prescribe,
shall prepare the Budget, and any proposed
supplemental or deficiency appropriations,
and to this end shall have authority to assen-
ble, correlate, revise, reduce, or increase
the requests for appropriations of the sev-
eral departments or establishments.


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