B-237627, B-237631, Jan 23, 1990, Office of General Counsel

B-237627,B-237631: Jan 23, 1990

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FAR case No. 89-68 is a proposal to revise FAR subsection 37.110(c) with respect to use of the contract clause at FAR section 52.237-3. The service contractor will provide assistance to the successor service provider (either the government or another contractor) to ensure an orderly transition. FAR case No. 89-71 is a proposal to add paragraph (a)(4) to the contract cost principle at FAR section 31.205-41. We have no objection to the proposed changes.

B-237627, B-237631, Jan 23, 1990, Office of General Counsel

PROCUREMENT - Payment/Discharge - Federal procurement regulations/laws - Revision - Cost reimbursement DIGEST: General Accounting Office has no objection to Federal Acquisition Regulation (FAR) case No. 89-71, a proposal to add paragraph (a)(4) to the cost principle at FAR section 31.205-41 to make the Superfund tax an allowable contract cost. PROCUREMENT - Special Procurement Methods/Categories - Federal procurement regulations/laws - Revision - Service continuity General Accounting Office has no objection to Federal Acquisition Regulation (FAR) case No. 89-68, a proposal to revise FAR section 37.110(c) concerning use of the clause at FAR section 52.237-3, Continuity of Services.

Margaret A. Willis FAR Secretariat General Services Administration Ms. Willis:

This responds to your letter of October 20, 1989, requesting our comments on Federal Acquisition Regulation (FAR) case No. 89-68, which concerns use of the Continuity of Services clause, and FAR case No. 89 71, which concerns the allowability of the so-called Superfund tax.

FAR case No. 89-68 is a proposal to revise FAR subsection 37.110(c) with respect to use of the contract clause at FAR section 52.237-3, Continuity of Services. Basically, the clause provides that during a specified period after the contract has expired, the service contractor will provide assistance to the successor service provider (either the government or another contractor) to ensure an orderly transition. FAR subsection 37.110(c) currently provides for use of the clause when the government anticipates difficulties during the transition. The proposed change would state that, additionally, the services must be considered vital to the government. Also, revised section 37.110(c) would contain two examples of instances where use of the clause might be appropriate: services in remote locations, and services requiring personnel with special security clearances.

FAR case No. 89-71 is a proposal to add paragraph (a)(4) to the contract cost principle at FAR section 31.205-41, which prescribes the circumstances for reimbursing contractors for taxes paid. The proposed revision would list as allowable the environmental tax imposed by section 59A of the Internal Revenue Code of 1986, 26 U.S.C.A. 59A (West Supp. 1989). We have no objection to the proposed changes.