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[Comments on Proposed Amendment to FAR to Clarify Special Tooling Policy]

B-232662 Published: Nov 22, 1988. Publicly Released: Nov 22, 1988.
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The General Services Administration (GSA) requested comments on a proposal to amend the Federal Acquisition Regulation to clarify government policy regarding special tooling furnished or acquired by the government. GAO recommended that GSA examine the proposed amendment to ensure its consistency with relevant legislation.

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B-232662, Nov 22, 1988

PROCUREMENT - Contract Management - Tooling costs - Federal procurement regulations/laws - Amendments DIGEST: General Accounting Office recommends that proposed amendment to Federal Acquisition Regulation (FAR) Sec. 45.306 and the clause of FAR Sec. 52.245-17 concerning special tooling be examined to ensure that it is consistent with all current legislation.

Ms. Margaret A. Willis FAR Secretariat General Services Administration

This responds to your request dated September 2, 1988, for out comments on a proposal to amend Federal Acquisition Regulation (FAR) Sec. 45.306 and the clause at FAR Sec. 52.245-17 as well as some related sections with respect to special tooling. This is FAR Case No. 88-36.

The proposed amendment would clarify government policy in connection with special tooling that is furnished by the government or acquired by the government under fixed priced contracts. The amendment is also intended to improve the management of special tooling and to enhance government retention and disposal decisions.

The proposed amendment is limited to instances where the special tooling is to be supplied by the government or where the government is to acquire title to contractor supplied tooling. Nevertheless, we think that it is important to recognize that recent legislation, Pub. L. No. 100-180, 101 Stat. 1130 (1987), which concerns the share of tooling costs that must be born by Department of Defense contractors, may have an impact on the issue of title to such tooling. Consequently, we recommend that the proposed amendment be examined to ensure that it is consistent with all current legislation.

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Federal procurement policyFixed price contractsProcurement regulationsStatutory lawFederal acquisition regulationsLegislationGovernment procurementContract managementDepartment of Defense contractors