Tax Policy and Administration:

Army Request for Contract Reformation

B-159066: Published: May 6, 1966. Publicly Released: May 6, 1966.


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GAO commented on whether a contract bid based on misinformation regarding the applicability of state taxes to a federal project may be reformed. GAO held that since the bid was based on information provided by the contracting agency which was later determined to have been wrong, the contract may be reformed and the contractor should be reimbursed for any tax the state taxing authority assessed against it in connection with its performance on the subject contract.

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