B-195766 L/M, APR 25, 1983 OFFICE OF GENERAL COUNSEL

B-195766 L/M, APR 25, 1983 OFFICE OF GENERAL COUNSEL

PRECIS-UNAVAILABLE

MR. PHILIP G. READ, GENERAL SERVICES ADMINISTRATION:

BY LETTER OF FEBRUARY 14, 1983, YOU REQUESTED OUR COMMENTS ON A PROPOSED AMENDMENT TO THE FEDERAL PROCUREMENT REGULATIONS (FPR). THE CHANGES RELATE TO GENERAL ACCOUNTING OFFICE AUDIT ACCESS (FPR SEC. 1 3.814-2(A)), COST ACCOUNTING STANDARDS ADMINISTRATION (FPR SEC. 1 3.1204-1(B)), REIMBURSEMENT OF CONTRACTOR EMPLOYEE TRAVEL AND RELOCATION (FPR SEC. 1-15.205) AND COST PRINCIPLES FOR CONTRACTS WITH EDUCATIONAL INSTITUTIONS (FPR SEC. 1-15.303).

WITH THE FOLLOWING QUALIFICATIONS, WE AGREE WITH THE PROPOSED CHANGES.

FPR SEC. 1-3.814-2(A) SETS FORTH A CONTRACT CLAUSE CONCERNING THE GOVERNMENT'S AUDIT ACCESS TO CONTRACTOR DOCUMENTS. THE PROPOSED AMENDMENT DELETES FROM THE SECOND SENTENCE OF PARAGRAPH (C) OF THE CLAUSE THE $100,000 THRESHOLD FOR THE COMPTROLLER GENERAL'S ACCESS RELATING TO CHANGES OR MODIFICATIONS TO FORMALLY ADVERTISED CONTRACTS. WE SUPPORT THIS CHANGE. WE ARE CONCERNED, HOWEVER, THAT PARAGRAPH (C) AS CURRENTLY WRITTEN MAY BE MISINTERPRETED TO MEAN THAT THE COMPTROLLER GENERAL'S ACCESS IS LIMITED TO CHANGES AND MODIFICATIONS TO FORMALLY ADVERTISED CONTRACTS INASMUCH AS THE COMPTROLLER GENERAL IS NOT MENTIONED IN THE FIRST SENTENCE OF PARAGRAPH (C) WHICH CONCERNS ACCESS RELATING TO CONTRACTS, CHANGES AND MODIFICATIONS IN CONNECTION WITH WHICH COST OR PRICING DATA WAS SUBMITTED. MOREOVER, THE DELETION OF THE $100,000 THRESHOLD HAS ELIMINATED THE NECESSITY FOR THE CLAUSE TO TREAT CHANGES AND MODIFICATIONS TO ADVERTISED CONTRACTS SEPARATELY. WE SUGGEST THAT THE SECOND SENTENCE BE DELETED AND THE WORDS "AND THE COMPTROLLER GENERAL OF THE UNITED STATES OR ANY OF HIS DULY AUTHORIZED REPRESENTATIVES" BE ADDED AFTER THE WORD "GOVERNMENT" IN THE FIRST SENTENCE.

THE PROPOSED AMENDMENT REVISES FPR SEC. 1-15.303 TO IMPLEMENT REVISIONS TO OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-21. PARAGRAPH B.1.B.(2) OF THE CIRCULAR STATES THAT UNIVERSITY RESEARCH MAY BE CONSIDERED PART OF THE INSTRUCTION FUNCTION, COMBINED WITH SPONSORED RESEARCH (RESEARCH AND DEVELOPMENT SPONSORED BY FEDERAL AND NON-FEDERAL INSTITUTIONS) OR TREATED AS A SEPARATE MAJOR FUNCTION, AS AGREED TO WITH THE COGNIZANT AGENCY. HAVE NO OBJECTION TO THIS PROVISION SO LONG AS THE SPONSORED RESEARCH IS SEPARATELY IDENTIFIED AND COSTS ARE MAINTAINED SEPARATELY. WE ADDRESSED THIS QUESTION IN OUR REPORT "FEDERALLY SPONSORED RESEARCH AT EDUCATIONAL INSTITUTIONS - NEED FOR IMPROVED ACCOUNTABILITY," PSAD 78-135, AUGUST 18, 1978. WE ARE ALSO CONCERNED ABOUT THE ADDED FLEXIBILITY GIVEN UNIVERSITIES IN DOCUMENTING SALARY COST ALLOCATIONS OR DISTRIBUTIONS. WE, HOWEVER, ARE UNABLE TO COMMENT ON THE ADEQUACY OF THE PROPOSED REVISION BECAUSE WE HAVE NOT DONE AUDIT WORK IN THIS AREA.