B-205862 L/M: Mar 12, 1982

GAO BELIEVES THAT PROPOSED REVISIONS TO DAR 3 403.3(C)(3) AND CLAUSE PRESCRIBED BY PROPOSED DAR SEC. 7-106.3 RELATING TO COST INDEX METHOD OF ESCALATION SHOULD BE REVISED TO INSURE THAT CONTRACTORS DO NOT RECEIVE ESCALATION COSTS HIGHER THAN THEY ARE ENTITLED TO DUE TO DELAYS IN COMPUTATION OF ESCALATION COSTS. ALTHOUGH THE COST INDEX METHOD IS PERMITTED BY EXISTING DAR SEC. 3-404.3(C)(3). THERE I...