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B-183670 1 (1976-01-29)

handle is hein.gao/gaobaddru0001 and id is 1 raw text is: DECISION FILE: B-183670 0LE R C o 9 THE COMPTROLLER GENERAL * 0 O0 THE UNITED STATES WASHINGTON., .C. 20548 DATE: January 29,1976 MATTER OF: Tele-Dynamics Division of AMBAC Industries DIGEST: Since protested award of procurement pursuant to section 22(a) of Foreign Military Sales Act will not involve use of appropriated funds, matter is not subject to settle- ment by GAO and is dismissed. This protest concerns a non-competitive contract award by the Department of the Navy, Naval Sea Systems Command (NSSC) to Nelson Electric Division of Sola Basic Industries under request for proposals No. N00024-75-C-4425(S). By a letter received in this Office on December 12, 1975, from NSSC, the Navy raised, inter alia, a question concerning our jurisdiction to render an authoritative decision on the merits of this protest. The Navy states that the transaction in the instant case represents a cash sale of defense articles pursuant to section 22 of the Foreign Military Sales Act, as amended, 22 U.S.C. 2762 (Supp. III, 1973). Section 22(a) authorizes the President, without requirement for charge to any appropriation or contract authorization otherwise provided, to enter into contracts to procure defense articles or services for cash sale to a foreign country upon a dependable undertaking by that country to make available in advance sufficient funds to cover payments, damages, and other costs due under the contract. The Navy indicates that the instant transaction was based upon such a dependable undertaking pursuant to section 22(a), i.e., advance payment. According to NSSC, the contract costs are charged against Navy's Foreign Military Sales Trust Fund, con- sisting of payments made by foreign governments. From the foregoing record it is sufficiently clear that this contract will not involve payments from appropriated funds. It is well established that this Office is without authority to render authoritative decisions with respect to procurements which do not involve expenditure of appropriated funds. B-171067, March 18, 1971. - 1 - PUBLISHED DECISION 55 Comp. Gen. - - --------

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