B-221098, DEC 3, 1985

B-221098, DEC 3, 1985

FEDERAL ACQUISITION REGULATION - PROPOSED REVISION DIGEST: GAO HAS NO OBJECTION TO PROPOSED CHANGES TO FEDERAL ACQUISITION REGULATION SECS. 31.109(H) AND 31.205-44 CONCERNING ADVANCE AGREEMENTS ON, AND THE ALLOWABILITY OF, TRAINING AND EDUCATION COSTS.

MS. MARGARET A. WILLIS:

FAR SECRETARIAT

GENERAL SERVICES ADMINISTRATION

THIS RESPONDS TO YOUR LETTER OF NOVEMBER 12, 1985, REQUESTING OUR COMMENTS ON PROPOSED CHANGES TO FEDERAL ACQUISITION REGULATION (FAR) SECTIONS 31.109(H) AND 31.205-44 CONCERNING THE ALLOWABILITY OF TRAINING AND EDUCATION COSTS. THIS IS FAR CASE NO. 85-51.

FAR SECTION 31.109(H) CONTAINS EXAMPLES OF COSTS FOR WHICH IT MAY BE IMPORTANT FOR THE GOVERNMENT AND A CONTRACTOR TO AGREE IN ADVANCE ON THE EXTENT TO WHICH COSTS WILL BE ALLOWABLE. THE PROPOSED CHANGE WOULD ADD TRAINING AND EDUCATION COSTS TO THE LIST OF EXAMPLES.

FAR SECTION 31.205-44 DESCRIBES THE CONDITIONS UNDER WHICH COSTS INCURRED BY A CONTRACTOR FOR TRAINING AND EDUCATION MAY BE RECOVERED UNDER A GOVERNMENT CONTRACT. THE PROPOSED CHANGE WOULD (1) SPECIFICALLY ALLOW RECOVERY OF TRAINING MATERIALS AND TEXTBOOK COSTS, (2) ALLOW FULL-TIME, POSTGRADUATE EDUCATION COSTS FOR UP TO 2 SCHOOL YEARS FOR EACH EMPLOYEE WITHOUT AN ADVANCE AGREEMENT, (3) ALLOW COSTS FOR UP TO 16 WEEKS OF MANAGERIAL TRAINING AND EDUCATION PROGRAMS, AND (4) REQUIRE A CONTRACTOR TO REFUND TO THE GOVERNMENT THE TRAINING AND EDUCATION COSTS IT RECEIVED ATTRIBUTABLE TO AN EMPLOYEE WHO RESIGNS WITHIN 12 MONTHS OF COMPLETION OF THE TRAINING AND EDUCATION COSTS FOR REASONS WITHIN THE EMPLOYEE'S CONTROL.

WE HAVE NO OBJECTION TO THE PROPOSED CHANGES.