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B-194400 1 (1979-04-27)

handle is hein.gao/gaobadhdz0001 and id is 1 raw text is: 
                     ~IER r
                             THE  COMPTROLLER GENERAL
 DECISION                    OF   THE UNITED STATES
                             WASHINGTON, D. C. 20549




 FILE:   B-194400                   DATE:4Apl7,         9

 MATTER   OF:  Bureau of Alcohol, Tobacco and Firearms--Payments
               Under Interagency Agreement

 DIGEST:    1. Fiscal year 1978 funds obligated by Bureau of Alcohol,
               Tobacco and Firearms under Economy Act agreement with
               Air Force, must be deobligated at the end of fiscal
               year 1978 to extent that Air Force has not incurred
               valid obligations under agreement during fiscal year.
               Air Force has validly obligated funds only to extent
               that performance by contractor satisfies bona fide
               need of fiscal year 1978.

            2. Under Economy Act agreement providing that contractor
               of Air Force is to provide research and development
               work and technical support to Bureau of Alcohol,
               Tobacco and Firearms, with Air Force paying for work
               and then being reimbursed by Bureau, only work
               actually performed by contractor during fiscal year
               1978 satisfies bona fide need of that year. Work
               done by contractor during fiscal year 1979 may not
               be paid for from fiscal year 1978 funds.


     This decision is in response to an inquiry from an authorized
certifying officer of the Bureau of Alcohol, Tobacco and Firearms
(Bureau)., Department of the Treasury, seeking our opinion on whether
a voucher may be legally certified for payment. The voucher, sub-
mitted by the Space and Missile Systems Organization, United States
Air Force (Air Force), seeks reimbursement, to be charged against
fiscal year 1978 funds, for expenditures incurred through January 31,
1979, under an interagency agreement between the Bureau and the Air
Force.  For the reasons indicated below, it is our opinion that the
voucher may not be certified for payment from fiscal year 1978 funds.

     The interagency agreement (designated Tatf-78-B-117 and accepted
by the Air Force on September 23, 1977) states that it was entered
into under the authority of the Economy Act of 1932, as amended,
31 U.S.C. § 686 (1976). Under the agreement, Aerospace Corporation,
pursuant to a cost-plus-a-fixed fee contract with the Air Force,
was to perform research and development work and provide technical
support to the Bureau in connection with the National Explosives
Tagging Program. The Air Force was to pay Aerospace for this work,
and was to be reimbursed by the Bureau.

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