Waiver of Government Surveillance Requirements

B-199713: Published: Sep 17, 1980. Publicly Released: Jun 4, 1985.

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GAO commented on a draft segment of the Federal Acquisition Regulation (FAR) covering the waiver of government surveillance requirements. The draft segment sets forth procedures under which contractor profit centers, operating predominantly in a competitive environment, may obtain a 2-year waiver of certain government surveillance requirements. GAO believes the regulation provides little assurance that the waivers will be granted only to contractors whose operations will actually be conducted predominately in a competitive environment. GAO recommends that the draft be revised to provide for automatic termination of a waiver where a profit center does not meet the requirement. GAO was concerned about the blanket authority which was given to agency heads or their designees to independently waive surveillance, so long as the requirements are met under FAR.

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