hereby authorized between the Army and the Navy upon the request of the head of one service and with the approval of the head of the other service. Act of July 11, 1919 (41 Stat, 132); 10 U. S. C. 1274.

1940. Procurement of military supplies from narcotic farms, Treasury Department. That the inmates of said narcotic farms shall be employed in such manner and under such conditions as the Secretary of the Treasury may direct. The Secretary of the Treasury may, in his discretion, establish industries, plants, factories, or shops for the manufacture of articles, commodities, and supplies for the United States Government; require any Government department or establishment or other institution appropriated for directly or indirectly by the Congress of the United States to purchase at current market prices as determined by the Secretary of the Treasury, or his authorized representative, such articles, commodities, or supplies as meet their specifications; Sec. 9, act of Jan. 19, 1929 (45 Stat. 1087); 21 U. S. C. 229.

1941. Procurement of military supplies from Procurement Division, Treasury Department. That hereafter all supplies of fuel, ice, stationery, and other miscellaneous supplies for the executive departments and other Government establishments in Washington, when the public exigencies do not require the immediate delivery of the article, shall be advertised and contracted for by the Secretary of the Treasury, instead of by the several departments and establishments, upon such days as he may designate. There shall be a general supply committee in lieu of the board provided for in section thirty-seven hundred and nine of the Revised Statutes, as amended, composed of officers, one from each such department, designated by the head thereof, the duties of which committee shall be to make, under the direction of the said Secretary, an annual schedule of required miscellaneous supplies, to standardize such supplies, eliminating all unnecessary grades and varieties, and to aid said Secretary in soliciting bids based upon formulas and specifications drawn up by such experts in the service of the Government as the committee may see fit to call upon, who shall render whatever assistance they may require. The committee shall aid said Secretary in securing the proper fulfillment of the contracts for such supplies, for which purpose the said Secretary shall prescribe, and all departments comply with, rules providing for such examination and tests of the articles received as may be necessary for such purpose; in making additions to the said schedule; in opening and considering the bids; and shall perform such other similar duties as he may assign to them: Provided, That the articles Intended to be purchased in this manner are those in common use by or suitable to the ordinary needs of two or more such departments or establishments; but the said Secretary shall have discretion to amend the annual common supply schedule from time to time as to any articles that, in his judgment, can as well be thus purchased. In all cases only one bond for the proper performance of each contract shall be required, notwithstanding that supplies for more than one department or Government establishment are included in such contract. Every purchase or drawing of such supplies from the contractor shall be immediately reported to said committee. No disbursing officer shall be a member of such committee. No department or establishment shall purchase or draw supplies from the common schedule through more than one office or bureau, except in case of detached bureaus or offices having field or outlying service, which may purchase directly from the contractor with the permission of the head of their department: And provided further, That telephone service, electric light, and power service purchased or contracted for from companies

or individuals shall be so obtained by him. Sec. 4, act of June 17, 1910 (36 Stat. 531); 41 U. S. C. 7.

That the Secretary of the Treasury, through the General Supply Committee established under the provisions of section 4 of the Act approved June 17, 1910, entitled "An act making appropriations for the legislative, executive, and judicial expenses of the Government for the fiscal year ending June 30, 1911, and for other purposes," is hereby authorized and directed to purchase or procure and distribute supplies to meet the consolidated requirements of the executive departments and independent establishments of the Federal Government in Washington, District of Columbia, and of the municipal government of the District of Columbia: Provided, That the requirements of the field services of any department or establishment, when request is made by the head thereof, shall be included in such purchase or procurement and distribution of supplies. The supplies to be purchased in this manner shall be designated by the Secretary of the Treasury from those for which he is authorized under existing law to make term contracts or to include in the general schedule of supplies issued annually by the General Supply Committee. Sec. 1, act of Feb. 27, 1929 (45 Stat. 1341); 41 U. 8. C. 7a.

That each executive department and independent establishment shall furnish from time to time, when called on to do so, estimates of its requirements for inclusion in purchases which it is proposed to have made by the Secretary of the Treasury, and there shall be reserved from proper appropriations sufficient amounts in each case to reimburse the general supply fund hereinafter created. The General Supply Committee shall charge the proportionate cost of supplies, including breakage, shrinkage, transportation, cost of handling by the Treasury Department, and inspection, and bill the same to each requisitioning department; and each requisitioning department and independent establishment shall reimburse said general supply fund out of its appropriation upon proper vouchers Sec. 2, act of Feb. 27, 1929 (45 Stat. 1342); 41 U. S. C. 76.

That there is hereby authorized to be set aside as a special fund in the Treasury Department, to be known as the general supply fund, such sum as may be appropriated by Congress for the making of payments for supplies to be purchased under the provisions of this Act, including the cost thereof and transportation charges, and reimbursement therefor, upon presentation of proper vouchers, shall be made by each requisitioning office, out of any appropriations which may be applicable, by depositing the proper amounts directly to the credit of the Treasurer of the United States for the credit of the general supply fund herein authorized, and duplicate certificates of deposits issued therefor shall be promptly forwarded to the General Supply Committee: Provided, That all such reimbursements shall be placed to the credit of the general supply fund, and the same are hereby reappropriated for the same purpose as the original fund: Provided further, That there shall be included in each annual report of the Treasury Department a statement of the assets and liabilities of the said general supply fund as of June 30, including as assets any supplies purchased therefrom and on hand for which reimbursement has not been received: Provided further, That the Comptroller General of the United States shall make an annual audit of the general supply fund as of June 30, and there shall be covered into the United States Treasury as miscellaneous receipts any surplus found therein, all assets and liabilities considered, above the amount appropriated to establish the said fund: Provided, however, That payments for supplies procured for a field service may, in the discretion of the head of the department or establishment controlling such field service, and with the concurrence of the Secretary of the Treasury, be made

direct to the vendors by the department or establishment. Sec. 3, act of Feb. 27, 1929 (45 Stat. 1342); 41 U. S. C. 7c.

That the Secretary of the Treasury is authorized to prescribe suitable regulations to give full force and effect to the purposes of sections 1, 2, and 3 of this act. Sec. 4, act of Feb. 27, 1929 (45 Stat. 1342); 41 U. S. C. 7d.

* Provided further, That the permanent capital of the general supply fund established by the act approved February 27, 1929 (U. S. C., Supp. VI, title 41, sec. 7c), is hereby increased by the value of fuel on the books of the Government fuel yards on June 30, 1934, plus the unexpended balances adjusted as of that date of appropriations heretofore made for the Government fuel yards, Title I, act of Mar. 15, 1934 (48 Stat. 437).

Provided further, That during the fiscal year 1936 and thereafter the general supply fund established by the Act approved February 27, 1929 (U. S. C., Supp. VII, title 41, sec. 7c), and increased by the Treasury Department Appropriation Act, 1936, shall be charged with expenditures for the purchase and transportation of fuel, storing and handling of fuel, maintenance and operation of yards and equipment, including two motor-propelled passenger-carrying vehicles for inspectors, purchase of equipment, rentals, and all other expenses requisite for and incident to the operation of the Government fuel yards, including personal services in the District of Columbia, and for the payment of outstanding obligations for such purposes previously incurred: *. Title I, act of May 14, 1935 (49 Stat. 234); 41 U. S. C. 70–1.

*

Provided further, That payments during the fiscal year 1935 to the general supply fund for materials, supplies (including fuel), and services, and overhead expenses, for all issues shall be made on the books of the Treasury Department by transfer and counter-warrants prepared by the Procurement Division of the Treasury Department and countersigned by the Comptroller General, such warrants to be based solely on itemized invoices prepared by the Procurement Division at issue prices to be fixed by the Director of Procurement: Provided further, That advances received pursuant to law (U. S. C., Supp. VI, title 31, sec. 686) from departments and establishments of the United States Government and the Government of the District of Columbia during the fiscal year 1935 shall be credited to the general supply fund: Provided further, That the term "fuel" shall be held to include "fuel oil" * *. Title I, act of Mar. 15, 1934 (48 Stat. 437), making appropriations for the Treasury Department. The last provision has been repeated in subsequent appropriation acts. For 31 U. S. C. 686, see 1926, ante.

By Executive Order No. 6166 of June 10, 1933, issued under authority of Title IV, Part II, act of June 30, 1932 (47 Stat. 413), as amended, the General Supply Committee was abolished, and the function of determination of policies and methods of procurement, warehousing, and distribution of property, facilities, structures, improvements, machinery, equipment, stores, and supplies exercised by any agency transferred to a Procurement Division in the Treasury Department, at the head of which shall be a Director of Procurement. By Title I, act of March 15, 1934 (48 Stat. 437), making appropriations for the Treasury Department, and subsequent appropriation acts, the several departments and establishments of the Government were authorized to transfer to the Treasury Department sufficient funds to cover the compensation of employees transferred to the Procurement Division hereunder. R. S. sec. 3709, mentioned in this section, is set forth ante, 1929.

1942. Aircraft and appurtenances; procurement. That in order to encourage the development of aviation and improve the efficiency of the Army and Navy aeronautical matériel the Secretary of War or the Secretary of the Navy, prior to the procurement of new designs of aircraft or aircraft parts or aeronautical accessories, shall, by advertisement for a period of thirty days in at least three of the leading aeronautical journals and in such other manner as he may deem advisable, invite the submission in competition, by sealed communications, of

such designs of aircraft, aircraft parts, and aeronautical accessories, together with a statement of the price for which such designs in whole or in part will be sold to the Government. Sec. 10 (a), act of July 2, 1926 (44 Stat. 784); 10 U.S. C. 310 (a).

The aforesaid advertisement shall specify a sufficient time, not less than sixty days from the expiration of the advertising period, within which all such communications containing designs and prices therefor must be submitted, and all such communications received shall be carefully kept sealed in the War Depart ment or the Navy Department, as the case may be, until the expiration of said specified time, and no designs mailed after that time shall be received or considered. Said advertisement shall state in general terms the kind of aircraft, parts, or accessories to be developed and the approximate number or quantity required, and the department concerned shall furnish to each applicant identical specific detailed information as to the conditions and requirements of the competition and as to the various features and characteristics to be developed, listing specifically the respective measures of merit, expressed in rates per centum, that shall be applied in determining the merits of the designs, and said measures of merit shall be adhered to throughout such competition. All designs received up to the time specified for submitting them shall then be referred to a board appointed for that purpose by the Secretary of the department concerned and shall be appraised by it as soon as practicable and report made to the Secretary as to the winner or winners of such competition. When said Secretary shall have approved the report of said board, he shall then fix a time and place for a public announcement of the results and notify each competitor thereof; but if said report shall be disapproved by said Secretary, the papers shall be returned to the board for revision or the competition be decided by the Secretary, in his discretion, and in any case the decision of the Secretary shall be final and conclusive. Such announcement shall include the percentages awarded to each of the several features or characteristics of the designs submitted by each competitor and the prices named by the competitors for their designs and the several features thereof if separable. Sec. 10 (b), act of July 2, 1926 (44 Stat. 784); 10 U. S. C. 310 (b). Thereupon the said Secretary is authorized to contract with the winner or winners in such competition on such terms and conditions as he may deem most advantageous to the Government for furnishing or constructing all of each of the items, or all of any one or more of the several items of the aircraft, or parts, or accessories indicated in the advertisement, as the said Secretary shall find that in his judgment a winner is, or can within a reasonable time become, able and equipped to furnish or construct satisfactorily all or part, provided said Secretary and the winner shall be able to agree on a reasonable price. If the Secretary shall decide that a winner cannot reasonably carry out and perform a contract for all or part of such aircraft, parts, or accessories, as above provided, then he is authorized to purchase the winning designs or any separable parts thereof if a fair and reasonable price can be agreed on with the winner, but not in excess of the price submitted with the designs. Sec. 10 (c), act of July 2, 1926 (44 Stat. 785); 10 U. S. C. 310 (c). ·

After contract is made, as authorized by any provision of this section, with a winner in such design competition for furnishing or constructing aircraft, aircraft parts, or aeronautical accessories in accordance with his designs and payment is completed under said contract, and after the purchase of and payment for the designs or separable parts thereof of a winner, as authorized herein, with whom a contract shall not have been made for furnishing or constructing aircraft, aircraft parts, or aeronautical accessories in accordance with his designs, then in either case any department of the Government shall have the right

without further compensation to the winner to construct or have constructed according to said designs and use any number of aircraft or parts or accessories, and sell said aircraft or parts or accessories according to law as condemned material: Provided, That such winner shall, nevertheless, be at liberty to apply for a patent on any features, originated by him, and shall be entitled to enjoy the exclusive rights under such patent as he may obtain as against all other persons except the United States Government or its assignee as aforesaid. Sec. 10 (d), act of July 2, 1926 (44 Stat. 785) ; 10 U. S. C. 310 (d).

The competitors in design competition mentioned in this section shall submit with their designs a graduated scale of prices for which they are willing to construct any or all or each of the aircraft, aircraft parts, and aeronautical accessories for which designs are submitted and such stated prices shall not be exceeded in the awarding of contracts contemplated by this section. Sec. 10 (e), act of July 2, 1926 (44 Stat. 785); 10 U. S. C. 310 (e).

If the Secretary of War or the Secretary of the Navy shall find that in his judgment none of the designs submitted in said competition is of sufficient merit to justify the procurement of aircraft, aircraft parts, or aeronautical accessories in accordance therewith, then he shall not be obligated to accept any of such designs or to make any payment on account of any of them. If the Secretary of the department concerned shall decide that the designs submitted by two or more competitors possess equal merit, or that certain features embodied in the designs of any competitor are superior to corresponding features embodied in the designs of any other competitor and such features of one design may be substituted in another design, the said Secretary shall in his discretion divide the contracts for furnishing and manufacturing the aircraft, parts, or accessories required, equitably among those competitors that have submitted designs of equal merit, or he may select and combine features of superior excellence in different designs in such manner as may in his judgment best serve the Government's interests and make payment accordingly to the several competitors concerned at fair and reasonable prices, awarding the contract for furnishing or constructing the aircraft, parts, or accessories to the competitor or competitors concerned that have the highest figures of merit in said competition. Sec. 10 (f), act of July 2, 1926 (44 Stat. 786); 10 U. S. C. 310 (f).

In case the Secretary of War or the Secretary of the Navy shall be unable to make contract as above authorized with a winner in said competition for furnishing or constructing aircraft, aircraft parts, or aeronautical accessories covered by the whole or part of the designs of such winner, or shall be unable to agree with a winner in the competition on a reasonable purchase price for the design of such winner with whom a contract may not be made, as aforesaid, he may retain such designs and shall advertise according to law for proposals for furnishing or constructing aircraft, or parts or accessories, in accordance with such designs or combinations thereof as aforesaid and, after all proposals are submitted, make contract on such terms and conditions as he may consider the best in the Government's interests, with the bidder that he shall find to be the lowest responsible bidder for furnishing or constructing the aircraft, parts, or accessories required, but the said Secretary shall have the right to reject all bids and to advertise for other bids with such other and different specifications as he may deem proper. Sec. 10 (g), act of July 2, 1926 (44 Stat. 786); 10 U. S. C. 310 (g).

If, within ten days after the announcement of the results of said competition, any participant in the competition shall make to the Secretary of War or to the Secretary of the Navy a reasonable showing in writing that error was made in determining the merits of designs submitted whereby such claimant was unjustly deprived of an award, the matter shall at once be referred by the Secretary of the