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B-237146 1 (1990-02-23)

handle is hein.gao/gaobadnrr0001 and id is 1 raw text is: The Comptroller General of the United States Washington, D.C. 20548 Decision Pennsylvania Avenue Development Corporation- Matterof: Cost of Construction Consultants File: B-237 146 Date: February 23, 1990 DIGEST In overseeing construction of the Federal Triangle Development Project, The Pennsylvania Avenue Development Corporation may have its construction consultants' fees amortized as a cost of construction rather than as an expense of the Corporation because the funds transferred to the Corporation under the Federal Triangle Development Act were intended to cover start-up costs. The Corporation formally notified the required congressional committees of its plan to amortize these costs as a cost of construction and the committees did not object to this arrangement. DECISION The Pennsylvania Avenue Development Corporation asks whether it may arrange to pay construction consultants hired to oversee construction of the Federal Triangle Development Project directly from funds raised through private financing, rather than from the Corporation's appropriated funds. For the reasons discussed below, we conclude that such an arrangement is permissible. BACKGROUND Congress created the Pennsylvania Avenue Development Corporation (Corporation), a wholly owned government corporation, to develop a plan to revitalize Pennsylvania Avenue in the District of Columbia. 40 U.S.C. § 871-885 (1982); 31 U.S.C. § 9101(3)(1982). In the Federal Triangle Development Act (Act), Pub. L. No. 100-113, 101 Stat. 735- 747 (codified at 40 U.S.C. § 1101-1109 (Supp. V 1987)), Congress gave the Corporation primary responsibility for the planning, development, and construction oversight of a new federal office building to be built at the Federal Triangle site in the District. Plans for the building call for it to be large enough (second in size only to the Pentagon) to consolidate the locations of several government

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