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Department of Labor--Refusal of Contracting Officer to Consider Claims Made by Contractor Against Funds Available Due to Disallowance

B-208871.2 Feb 09, 1989
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Highlights

The Department of Labor Associate Solicitor for Employment and Training Legal services has asked whether a contracting officer or grant official may, at his discretion, refuse to allow valid costs submitted as substitute costs for previously disallowed costs as long as the total amount allocated to the contract is not exceeded. GAO concludes that where funds remain available under a grant or contract as a result of disallowed costs, a grantee or contractor may submit other grant or contract costs as substitutes and these costs should be paid if otherwise allowable, up to the maximum amount authorized by the contract or grant.

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