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B-151944, AUG. 16, 1963

B-151944 Aug 16, 1963
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GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO A LETTER DATED JUNE 24. (3) LISTING OF TAXES WHICH ARE NOT ALLOWABLE. OTHER PROPOSED CHANGES ARE MINOR AND EDITORIAL IN NATURE. ON THE BASIS OF OUR REVIEW OF THE PROPOSED CHANGES WE ARE NOT AWARE OF ANY SUBSTANTIAL REASONS WHY THE FEDERAL PROCUREMENT REGULATIONS SHOULD NOT BE REVISED AS PROPOSED. ALTHOUGH WE HAVE NO OBJECTION TO THE IMPLEMENTATION OF THESE REVISIONS. WE MUST ADVISE THAT OUR OFFICE WILL FEEL FREE TO RAISE ANY SUBSEQUENT OBJECTIONS THAT MAY BE WARRANTED AS A RESULT OF OUR AUDIT WORK.

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B-151944, AUG. 16, 1963

TO ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO A LETTER DATED JUNE 24, 1963, FROM THE DIRECTOR OF PROCUREMENT AND ECONOMIC POLICY REQUESTING OUR COMMENTS AND REVIEW OF PROPOSED MISCELLANEOUS CHANGES TO THE FEDERAL PROCUREMENT REGULATIONS.

THE PROPOSED CHANGES DEAL WITH: (1) CONTRACTOR LABOR POLICIES AND COMPENSATION PRACTICES AS THEY RELATE TO CONTRACT COSTS; (2) LOCATION ALLOWANCES AT UNFAVORABLE SITES AS THEY RELATE TO CONTRACT COSTS; AND (3) LISTING OF TAXES WHICH ARE NOT ALLOWABLE. THE PROPOSED CHANGES ALSO PROVIDE AN OPTIONAL METHOD OF PRICING MATERIAL IN A TIME AND MATERIAL CONTRACT; INCORPORATE THE POLICY APPLIED TO THE DEPARTMENT OF DEFENSE BY SECTION 636 OF THE DEPARTMENT OF DEFENSE APPROPRIATION ACT OF 1962, THEREBY EXTENDING UNIFORMITY OF REGULATION AMONG ALL EXECUTIVE GENCIES; AND EXTEND THE APPLICABILITY OF THE COST PRINCIPLES IN PART 1-15 OF THE FEDERAL PROCUREMENT REGULATIONS TO THE NEGOTIATION OF ANY PRICE ADJUSTMENT REQUIRED BY TERMS OF THE CONTRACT. OTHER PROPOSED CHANGES ARE MINOR AND EDITORIAL IN NATURE.

ON THE BASIS OF OUR REVIEW OF THE PROPOSED CHANGES WE ARE NOT AWARE OF ANY SUBSTANTIAL REASONS WHY THE FEDERAL PROCUREMENT REGULATIONS SHOULD NOT BE REVISED AS PROPOSED. HOWEVER, ALTHOUGH WE HAVE NO OBJECTION TO THE IMPLEMENTATION OF THESE REVISIONS, WE MUST ADVISE THAT OUR OFFICE WILL FEEL FREE TO RAISE ANY SUBSEQUENT OBJECTIONS THAT MAY BE WARRANTED AS A RESULT OF OUR AUDIT WORK.

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