[Comment on Proposal To Change FAR]
Highlights
GAO commented on a proposal to change two sections of a Federal Acquisition Regulation which cover the allowability of a contractor's costs for air travel and make clear that those costs may be included in an advance agreement. GAO concluded that the changes would narrow the criterion for determining when the costs were allowable and that it was in favor of the proposed changes.
B-217918, JUL 25, 1985, OFFICE OF GENERAL COUNSEL
FEDERAL ACQUISITION REGULATION - PROPOSED REVISION DIGEST: GAO IS IN FAVOR OF A PROPOSAL TO CHANGE FEDERAL ACQUISITION REGULATION SECS. 31.205-46(D) AND (E), WHICH COVER THE ALLOWABILITY OF THE COSTS OF A CONTRACTOR'S AIR TRAVEL.
MR. ROGER M. SCHWARTZ: DIRECTOR, FAR SECRETARIAT GENERAL SERVICES ADMINISTRATION
WE REFER TO YOUR LETTER OF MARCH 12, 1985, REQUESTING OUR COMMENTS ON A PROPOSAL TO CHANGE FEDERAL ACQUISITION REGULATION (FAR) SECS. 31.205-46(D) AND (E), WHICH COVER THE ALLOWABILITY OF A CONTRACTOR'S COSTS FOR AIR TRAVEL. THE PROPOSAL ALSO WOULD CHANGE FAR SEC. 31.109 TO MAKE CLEAR THAT THESE COSTS MAY BE INCLUDED IN AN ADVANCE AGREEMENT. THIS IS FAR CASE NO. 85-7.
THE PROPOSED CHANGES WOULD ESTABLISH A SINGLE, RELATIVELY NARROW CRITERION FOR DETERMINING WHEN THE COSTS OF USING A CONTRACTOR'S AIRCRAFT ARE ALLOWABLE. THE CHANGES ALSO INCREASE THE DOCUMENTATION NEEDED TO JUSTIFY BOTH THE COST OF AIRFARE IN EXCESS OF COACH OR STANDARD FARE AND THE COST OF USING THE CONTRACTOR'S AIRCRAFT. WE ARE IN FAVOR OF THE PROPOSED CHANGES.