B-136138, JUN. 10, 1958

GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTERS OF MAY 13 AND MAY 22. A REVIEW OF THE COST DATA AS SHOWN IN THE COMPARISON TABLES TRANSMITTED WITH YOUR LETTER DISCLOSES THAT IN EACH INSTANCE THE PERCENTAGE INCREASE OF THE ACTUAL COST OVER THE ESTIMATED COST AS TABULATED IN THE PROSPECTUS IS IN EXCESS OF 7 PERCENT. PROVIDED THE VARIATIONS ARE REASONABLE UNDER THE CIRCUMSTANCES AND IN ACCORD WITH THE DETERMINATION OF THE POSTMASTER GENERAL UNDER SECTION 202 (E) (2) OF THE POST OFFICE DEPARTMENT PROPERTY ACT OF 1954. AS WE HAVE PREVIOUSLY STATED UNDER THIS POLICY WE WOULD HAVE NO OBJECTION TO AN UPWARD VARIATION IN THE COST OF AN ITEM OR COMBINATION OF ITEMS SO LONG AS THE AGGREGATE UPWARD VARIATION DOES NOT EXCEED 7 PERCENTUM OF THE TOTAL ESTIMATED COSTS AS SHOWN IN THE PROSPECTUS.