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B-225174 1 (1987-05-14)

handle is hein.gao/gaobabkxk0001 and id is 1 raw text is: 0Comptroller General of the United States Washington, D.C. 20548 B-225174 DO NOT MAKE AVAILABLE TO PUBLIC READN May 14, 1987 FOR 30 DAYS The Honorable G. V. (Sonny) Montgomery Chairman Committee on Veterans' Affairs House of Representatives Dear Mr. Chairman: By letters dated October 30 and November 19, 1986, the Committee asked a number of legal questions concerning, with one exception, a Veterans' Administration (VA) proposal to reorganize the Veterans' Canteen Service (VCS) and to have VCS contract out some or all canteen food services. The other question concerns the transfer of funds from the VCS revolving fund to the Treasury as a result of the 1986 sequestration order issued pursuant to Public Law 99-177, 99 Stat. 1037, popularly known as Gramm-Rudman-Hollings. In addition to the legal questions, the Committee requested our views on several other matters. As agreed by Committee staff, this letter addresses only the legal questions. We will contact the staff about proceeding on the other matters. As discussed more fully below, we think certain aspects of VA's proposed reorganization are inconsistent with the organizational independence and control provided the VCS by 38 U.S.C. § 4208. With respect to your question concerning VCS' authority to contract out all or part of canteen food services to private organizations, we think VCS may, as a general proposition, contract out the provision of goods and services to veterans and other canteen patrons without running afoul of the purpose, or specific provisions, of Chapter 75, Title 38, United States Code. Of course, any contracting out of service must not represent an abdication of VCS' control of canteen operations. With respect to your question concerning the 1986 sequestration order, we agree with the VA General Counsel that the transfer of money from the VCS revolving fund to the Treasury was proper. As you know, General Omar Bradley became concerned with the operation of canteens in VA medical facilities during his tenure as Administrator of VA. General Bradley had surveyed the concessionaire system existing in VA hospitals after World War II and verified the numerous complaints concerning the inadequate and unsatisfactory service rendered at A-A 4,16

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