, B-289380, July 31, 2002

B-289380 Jul 31, 2002 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights You asked for our opinion on whether section 27(g) of the Consumer Product Safety Act, codified at 15 U.S.C. 2076(g), provides the Consumer Product Safety Commission (Commission) with statutory authority to enter into agreements with other federal agencies independent of the Economy Act, 31 U.S.C. 1535. Such independent authority would permit the Commission to avoid the deobligation requirement applicable to Economy Act transactions. Based on the plain meaning of section 27(g), as confirmed by the legislative history of the Consumer Product Safety Act, we conclude that the Commission has independent statutory authority to enter into interagency agreements for activities authorized by the Act and these agreements are not subject to the deobligation requirement applicable to Economy Act transactions. View Decision Independent Statutory Authority of Consumer Product Safety Commission to Enter Into Interagency Agreements, B-289380, July 31, 2002 Mr. Michael S. Solender General Counsel U.S. Consumer Product Safety Commission Washington, D.C. 20207-0001 Dear Mr. Solender: You asked for our opinion on whether section 27(g) of the Consumer Product Safety Act, codified at 15 U.S.C. Sec. 2076(g), provides the Consumer Product Safety Commission (Commission) with statutory authority to enter into agreements with other federal agencies independent of the Economy Act, 31 U.S.C. Sec. 1535. Such independent authority would permit the Commission to avoid the deobligation requirement applicable to Economy Act transactions. Based on the plain meaning of section 27(g), as confirmed by the legislative history of the Consumer Product Safety Act, we conclude that the Commission has independent statutory authority to enter into interagency agreements for activities authorized by the Act and these agreements are not subject to the deobligation requirement applicable to Economy Act transactions. ANALYSIS Unless otherwise authorized by law, transfers of funds between federal government agencies and instrumentalities are prohibited by law. 31 U.S.C. Sec. 1532. The Economy Act, 31 U.S.C. Sec. 1535, authorizes an agency to provide goods or services to another agency on a reimbursable payment basis. 70 Comp. Gen. 592, 595 (1991). The Economy Act was created to "permit the utilization of the materials, supplies, facilities, and personnel belonging to one department by another department or independent establishment which is not equipped to furnish the materials, work, or services for itself, and to provide a uniform procedure so far as practical for all departments." 57 Comp. Gen. 675, 678-80 (1978). See also, H.R. Rep. No. 72-1126, at 15-16 (1932). The Economy Act requires that when an agency enters into an agreement with another federal agency, the ordering agency must obligate the appropriation from which it will reimburse the performing agency. 31 U.S.C. Sec. 1535(d). If the appropriation charged is a fiscal year appropriation, the Economy Act requires the ordering agency to deobligate the appropriation at the end of the fiscal year charged to the extent that the performing agency has not performed or incurred valid obligations under the agreement. Id. See, e.g., 39 Comp. Gen. 317 (1959); 34 Comp. Gen. 418, 421-22 (1955). Where an interagency agreement is based on specific statutory authority other than the Economy Act, an agency is not required to deobligate funds at the end of the period of availability. See, e.g., B-282601, Sept. 27, 1999 (section 1535(d) only applies to interagency agreements under the Economy Act); B-167790, Sept. 22, 1977 (agreement is authorized by statutory provisions other than Economy Act and is therefore not subject to unique obligation treatment applicable Economy Act transactions). However, an ordering agency may obligate a time limited appropriation only to meet a legitimate, or bona fide, need of the fiscal year in which the appropriation is made. B-282601, Sept. 27, 1999. Generally, funds may be obligated for the provision of services beyond the fiscal year in which the appropriation is made only to the extent a bona fide need exists and the services constitute a single nonseverable undertaking. Id. Section 27(g) of the Consumer Product Safety Act provides that: "The Commission is authorized to enter into contracts with governmental entities, private organizations, or individuals for the conduct of activity authorized by this chapter." 15 U.S.C. Sec. 2076(g). The place to begin to determine whether section 27(g) authorizes the Commission to enter into agreements with other federal agencies is with the language of the statute itself. "Absent a clearly expressed legislative intention to the contrary, the language must ordinarily be regarded as conclusive." Consumer Prod. Safety Comm'n v. GTE Sylvania, 447 U.S. 102, 108 (1980).