Comments on Price Provision of USDA Contract for Electronic Dissemination of Information System

B-219338: Jun 2, 1987

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Thomas H. Armstrong
(202) 512-8257


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO commented on the propriety of a Department of Agriculture (USDA) contract for the operation of an information dissemination system. The contract provided that the contractor would reimburse USDA a certain percentage of its revenue from fees it charged non-USDA users. GAO determined that: (1) the legislation that authorized the system authorized USDA to recover system costs from users; (2) the legislation authorized USDA to contract to operate the system; and (3) USDA could not recover more than the authorizing legislation allowed.