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B-114839 1 (1979-01-03)

handle is hein.gao/gaobabjln0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 B-114839 The Honorable George Hansen House of Representatives Dear Mr. Hansen: This is in response to your letters of November 6 and 17, and December 5, 1978, requesting our investigation and legal determina- tion of thelropriety of construction by the Department of the Army, &.:' (Army) in the Panama Canal Zone (Canal Zone) for relocation of military installations) in anticipation of the effective date of the recently ratified Panama Canal Treaties. An additional December 4, 1978, letter, from you, cosigned by 19 other Congressmen, summarizes and reiterates your concerns. Your letters raise two principal questions; first, whether it is- legal for the Army to use its appropriated funds for the realignment of military bases in the Canal Zone; and second, the propriety of the award of a fixed price contract without advertisement for bids to J. A. Jones Construction Company to undertake the construction needed to realign those bases. Pursuant to an agreement with your office, this response will be limited: 'to the first point. We have written to the Army for information concerning the J-. A. Jones contract, and will report on it later. In your letters, you state that section 817 of the Department of Defense (DOD) Appropriation Authorization Act, 1979, Pub. L. No. 95-485 (October 20, 1978), would prohibit the Army from using any of its funds for the realignment of military installations in the Canal ,Zone in implementation-of the Panama Canal Treaties. The determina- tion by Deputy Secretary of Defense C. W. Duncan, Jr., on October 4, 1978, to use $10. 9 million of funds for military construc- tion purposes for implementing the Panama Canal Treaties, is, in your view, in defiance of section 817 and its legislative history. Section 817 of Pub. L. No. 95-485 states: None of the funds authorized to be appropriated by this Act shall be used for the realignment of any mii-ar installation in the Canal Zone unless such use is consistent with the responsibility of, and necessity 0 03071

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