TITLE: Department of the Air Force--Purchase of Decals for Installation on Public Utility Water Tower, B-301367, October 23, 2003
BNUMBER: B-301367
DATE: October 23, 2003
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Department of the Air Force--Purchase of Decals for Installation on Public
Utility Water Tower, B-301367, October 23, 2003
Decision
Matter of: Department of the Air Force--Purchase of Decals for
Installation on Public Utility Water Tower
File: B-301367
Date: October 23, 2003
DIGEST
1.The Air Force Reserve Operation and Maintenance appropriation is
available for affixing decals of the major units assigned to Grissom Air
Reserve Base onto a nearby utility company water tower to inform the
public of the military*s activities in the area. Affixing decals of units
assigned to Grissom Air Reserve Base to a utility company water tower
would not violate the rule against using appropriated funds for
improvements to non-federal property because the decals would not enhance
the water tower*s value.
DECISION
The Comptroller of the 434th Air Refueling Wing, Grissom Air Reserve
Base,(Grissom) has requested an advance decision on whether the Air Force
Reserve Operation and Maintenance appropriation is available to purchase
and install decals on a public utility water tower. As explained below, we
conclude that the appropriation is available for this purpose.
BACKGROUND
On October 1, 1994, Grissom Air Force Base was realigned to what it is
now, Grissom Air Reserve Base (Grissom). As a result, the Wing Commander,
in charge of Grissom*s operations, believes that the Base*s *footprint*
became much smaller. He believes that the public generally is not aware
that Grissom is still in operation. To address this, the Wing Commander
would like to have decals of the major units assigned to the Base (Air
Force, Navy, Marines, and Army Reserves), showing their
unit patch and unit designations, affixed to a water tower owned by Peru
Utilities,
located near the Base and visible from a major highway. He believes that
this will contribute to the Air Force Reserve*s recruiting effort and will
inform the public that there is a military presence in Indiana.
The utility company has agreed to allow the decals on its water tower with
the understanding that the Air Force will cover the cost of the decals and
their installation. The Comptroller has indicated that materials will
cost approximately $2,500. Military and civilian employees will perform
the necessary labor.
The Comptroller asks whether the Operations and Maintenance, Air Force
Reserve appropriation[1] is available for the purpose of putting the
decals on the water tower under the rationale stated by the Wing
Commander. Also, he asks if affixing the decals would constitute a
prohibited alteration to non-federal government property.
DISCUSSION
An agency may use appropriated funds only for the purposes for which
appropriated. 31 U.S.C. S: 1301(a). While the Air Force Reserve
Operation and Maintenance appropriation does not specifically provide
funds for informing the public about its activities, it is generally
available for *expenses . . . necessary for the operation and maintenance,
including training, organization, and administration, of the Air Force
Reserve; repair of facilities and equipment . . . .*[2]
Where, as here, an appropriation does not authorize an expenditure
specifically, the availability of that appropriation for the expenditure
is determined by applying the *necessary expense rule.* 66 Comp. Gen.
356, 359 (1987). The appropriation is available if the expenditure is
reasonably necessary to carry out an authorized function or will
contribute materially to the effective accomplishment of that function,
and is not otherwise prohibited by law. Id. The application of the
necessary expense rule, in the first instance, is a matter of agency
discretion. When an agency determines that an expenditure is a
permissible use of its appropriation under a necessary expense analysis,
we will review the reasonableness of that determination. In those
instances, our inquiry focuses on whether the relationship of the proposed
expenditure to the appropriation sought to be charged is so attenuated as
to take the proposed expenditure beyond the agency*s legitimate range of
discretion. See B-280440, Feb. 26, 1999; B-247563, May 12, 1993. In this
case, we
conclude that the Wing Commander*s use of the operation and maintenance
appropriation for the proposed decals falls within the Wing Commander*s
discretion.
Agencies may use appropriated funds to convey information to the public
about their authorized activities. For example, the Immigration and
Naturalization Service salaries and expenses appropriation was available
to purchase medals to be worn by employees of the Border Patrol to
commemorate its 75th anniversary. B-280440, Feb. 26, 1999. The Border
Patrol asserted that *the medals would heighten public awareness of the
stability and longevity of the division, hopefully creating goodwill that
would benefit the agents while they perform their duties.* Id. We found
that the Border Patrol*s justification for the use of its salaries and
expenses appropriation was not so attenuated as to remove the proposed
expenditure of the appropriation beyond INS* range of discretion: *The
medals convey as well as serve an institutional purpose, i.e., reminding
the public and agency staff of the Border Patrol*s 75 years of hard work
and dedication, advancing knowledge and appreciation for the agency*s
history and mission and promoting the stability and longevity of the
agency.* Id.
Similarly, in another case, we did not question the Army*s administrative
determination that the expense of purchasing calendars solely for the
purpose of publicizing the activities of the Chaplain*s Office and Army
Community Services was reasonably necessary to carry out the purposes of
those two programs. We found payment for the calendars out of
appropriated funds permissible. 62 Comp. Gen. 566 (1983). See also
B-62501, Jan. 7, 1947.
Whether a particular expenditure furthers an agency*s mission depends
largely on the facts and circumstances of the case. In this case, in
light of Grissom*s realignment as a reserve base, affixing decals of the
major units assigned to Grissom Air Reserve Base onto the Peru Utilities
water tower nearby serves to inform the public of its modified, but
continuing presence. As the Wing Commander has indicated, this will
inform the public that the base remains open, and that there are now Air
Force, Army, Navy, and Marine reserve units on the base. Further, local
awareness of the Base*s presence can foster goodwill between Grissom and
the community and increase the public*s knowledge and appreciation for the
Base. Without any evidence to the contrary, we defer to the Wing
Commander*s determination that the use of the decals to advertise the
units present on Base would advance the Reserves* recruiting efforts.[3]
The Comptroller also questions affixing the decals on another ground. He
notes the longstanding policy that agencies may not use appropriated funds
to make permanent improvements to non-federal property.[4] Although he
recognizes that
affixing the decals would not be a permanent improvement, he states that
it would
constitute what he terms an alteration, and he questions whether
appropriated funds would be available.
The policy to which the Comptroller refers is specifically directed at
prohibiting improvements--permanent enhancements to the value of
property--to private property. 71 Comp. Gen. 4 (1991). Our decisions
have sanctioned the use of appropriated funds for improvements to private
property where certain factors are present. 69 Comp. Gen. 673 (1990), 53
Comp. Gen. 351 (1973). The proposed improvements must be incidental to
and essential for the accomplishment of the purpose of the appropriation.
The cost must be reasonable. The improvements must be used for the
principal benefit of the government, and the government*s interest in the
improvements must be protected. Although the decals would alter the
appearance of the water tower, neither the Comptroller nor Peru Utilities
has suggested that they would enhance its value.
CONCLUSION
The Air Force Reserve may use operation and maintenance funds to affix
decals of the units assigned to Grissom Air Reserve Base to the Peru
Utilities water tower for the purpose of informing the public of its
continuing presence. Affixing the decals would not violate the rule
against using appropriated funds for improvements to private property
because affixing the decals would not constitute an improvement to the
water tower.
/signed/
Anthony Gamboa
General Counsel
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[1] Base operations are currently funded out of the fiscal year 2004
appropriation. Pub. L. No. 108-87, ___ Stat. ___ (Sep. 30, 2003).
[2] Id.
[3] The Air Force Reserve fiscal year 2003 Operation and Maintenance
Appropriation specifies that it is available for recruiting. Id.
[4] See, e.g., 71 Comp. Gen. 4 (1991); 69 Comp. Gen. 673 (1990); 42 Comp.
Gen. 480 (1963).