B-217780, JUL 25, 1985, OFFICE OF GENERAL COUNSEL

B-217780, JUL 25, 1985, OFFICE OF GENERAL COUNSEL

FEDERAL ACQUISITION REGULATION - PROPOSED REVISION DIGEST: GAO HAS NO OBJECTION TO A PROPOSAL TO ADD FEDERAL ACQUISITION REGULATION (FAR) SEC. 32.103 AND REVISE FAR CLAUSE 52.323-5, BOTH OF WHICH CONCERN CONSTRUCTION CONTRACT PROGRESS PAYMENTS.

MR. ROGER M. SCHWARTZ: DIRECTOR, FAR SECRETARIAT GENERAL SERVICES ADMINISTRATION

WE REFER TO YOUR LETTER OF FEBRUARY 21, 1985, REQUESTING OUR COMMENTS ON A PROPOSAL TO ADD FEDERAL ACQUISITION REGULATION (FAR) SEC. 32.103 AND REVISE FAR CLAUSE 52.232-5, BOTH OF WHICH CONCERN CONSTRUCTION CONTRACT PROGRESS PAYMENTS, SO THAT THE FAR WILL CONFORM WITH OFPP POLICY LETTER 83-1. THAT LETTER STATES THE GOVERNMENTWIDE POLICY THAT ONLY FOR CAUSE SHOULD CONTRACTING AGENCIES RETAIN FUNDS FROM PROGRESS PAYMENTS MADE UNDER CONSTRUCTION CONTRACTS. THIS IS FAR CASE NO. 84-26.

WE HAVE NO OBJECTION TO THE PROPOSAL.