Views on Provisions of S. 1181

B-212563: Published: Aug 3, 1983. Publicly Released: Jun 4, 1985.

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In response to a congressional request, GAO provided its view on S. 1181. The bill would require federal executive agencies, when they elect to make progress payments under a construction contract, to make such progress payments in full to the contractor without retention of any portion of the payment due unless the contracting officer finds and determines that the contractor is not making timely or otherwise satisfactory progress toward completion of the contract. GAO does not believe that the provisions of the bill would be consistent with good business practice or would provide the federal government the protection that retention of a percentage of progress payments now affords. GAO was also asked to provide its assessment of the possible paperwork and regulatory burdens which might result from passage of the bill. While there may be some instances in which government paperwork could increase, GAO would not expect any added burden to be significant, and it does not appear that contractors would be burdened with additional paperwork.

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