Comments on Proposed Amendment to Federal Procurement Regulations

GAO comments were requested on a proposed amendment to Federal Procurement Regulations (FPR) which adds a clause for use when there are predetermined overhead rates on contracts with nonprofit organizations, State and local governments, and Indian tribal governments. In addition, comments were requested on a proposed revision to a number of cost principles applicable to commercial organizations including the cost principle concerning relocation costs. Since the proposed change in the FPR concerning overhead rates includes some of the significant concepts of the cost accounting standards, the two remaining requirements of the standards should be included in the amendment. Since GAO is currently conducting a review of travel policies and practices of government contractors, the issuance of the proposed revision to the FPR concerning the reimbursement of relocation costs should be delayed until the review is completed.