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B-118638.101 1 (1979-10-29)

handle is hein.gao/gaobadhrv0001 and id is 1 raw text is: FILE: B-118638. 101 MATTER DIGEST: DATE: October 29, 1979 OF: District of Columbia Eligiblity for Local Public Works Grant Funds Interpretation by Economic Development Administra- tion of force account prohibition contained in 42 U.S.C. 5 6705(e) (1) to disallow the cost of architectural and engineering project inspection directly performed by employees of District of Columbia or other grantees is not unreasonable or inconsistent with the statute, and is not clearly erroneous or inconsistent with agency regulations implementing the statute. Accord- ingly, with no legal basis to object to legality of this interpretation, these costs need not be allowed under Local Public Works program grants. However, if, as the District contends, EDA approved some grant appli- cations in which the District indicated it would use, and expect to be reimbursed for, its own employees per- forming this work, the grant approval would bind EDA to paying this cost. The Mayor of the Dis ict of Columbia (District) requested a decision from this Office as to whether in administering the Fed- eral grant program authorized by Title I of the Local Public Works 666, )- Capital Development and Investment Act of 1976, Pub. L. No. 94-Q(J 369, July ZZ, 1976, 90 Stat. 999, 42 U.S.C. §S 6701-6710 (1976), as amended by Pub. L. No. 95-28, May 13, 1977, 91 Stat. 116, '(Act), the Economic Development Administration (EDA) may disallow the AL costs of architectural and engineering (A/E) project inspection per- formed by the District's own employees as opposed to private contractors. In 1976, at a time when the United States was suffering a serious economic recession, Congress passed Title I of the Act to stimulate the economy and to relieve unemployment in the con- struction industry. Title I authorized to be appropriated $2 bil- lion in Federal grants to State and local governments, defined to include the District, for the construction of local public works (LPW) projects. The Federal Government pays 100 percent of project costs. In 1977, after conducting hearings to ascertain ways to im- prove the LPW program, Congress enacted Round II of LPW ~9z3~ 0ioI THE COMPTROLLER GENERAL DECISION .OF TH.NG UNITED 5TATES W ASHI41NG TON, 0. C. 205 a E

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