Evening star., 1935-11-07
M'CARL RULINGS
| CLEAR POINTS IN
Z j. s ACTIVITIES
Private Management for
LoW-Cost Housing
Projects Barred.
$296,311 APPROVED
| ON BUILDING WORK
Controller General Rules Out
Flexible Price Provision Where
Controller General Rules Out
Flexible Price Provision Where
A.A.A. Clause Is in Contract.

Controller General McCarl today
set up guide posts for two administra-
ton activities.
In one case he barred private man
agement for the low-cost housing
projects springing up over the coun-
try, holding they must be operated
either by public housing authorities in
the communities themselves or direct
ly by the Government
In the second case he ruled out a
flexible price provision where an agri-
cultural adjustment act compliance
clause is written into a contract.
In another decision, the controller
general approved payment Of $685.
311.45 to the contractor on the Exten-
sion Building for the Department Of
Agriculture, representing the in
creased cost incurred by reason Of
delay in construction for which the
Government was responsible. The last
Congress appropriated s35o,000 for
this.
The housing decision went to Public
Works Administrator Ickes, who had
suggested the three possible methods
Of operation-public. private or Gov
ernment-eXplaining that 1t was neces-
sary to fix on one as soon as possible
"in order to be in a position to rent
the lcw-cost housing projects imme-
diately upon their completion"
Restricted Local Plan.
Ickes said the local administration
plan probably would have to be con-
fined to those cities which have pub.
lie housing authorities or other pub
lie bodies to whom the project may
be leased" McCarl agreed. He also
said in relation to the private man.
agement suggestion that lit would be
Objectionable as removing the project
from public control and for the further
reason that there would be involved
the delegation to such manager Of
authority to employ personnel and in
cur other obligations in the operation
Of Government t-owned project"
Where the Government IS the di.
rector operators. McCarl said admin
| istration costs must come out of the
appropriation from which the project
Is constructed. and that rentals or
other income may not be used as a
revolving fund. but must be returned
to the Treasury. This was in con-
formity with a previous ruling on
subsistence homesteads.
The A. A. A. compliance provision
decision went to Secretary of the
Navy Swanson, and was designed to
clear up confusion as to just how far
Government establishments could go
in making this compliance requisite
in letting contracts, Swanson having
expressed some doubt.
Originally Promulgated.
This provision originally was pro-
mulgated by the director of procure
ment. Treasury Department, and re-
quired any contractor to comply with
marketing agreements or licenses al.
ready affecting the A. A. A. or that
might thereafter be made, and at the
same time permitted charges to be
fixed with the same elasticity.
McCarl's ruling upholds the pro-
vision so far as it covers any regula-
tions in effect when a contract is
made but knocks out contingent
clause.
The Agriculture Building decision
went to the Treasury Department. and
was in accordance with a recommends
ton of its Board of Award. The build
ing, 80 per cent complete, was tied up
for two years due to the failure of the
Government to deliver the site, and
when it became possible to proceed
the contractor asked that the con-
tract first be adjusted. Even after the
award now agreed to there is an ad-
ditional difference in excess of $4,000
to be adjusted.