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FEDERAL ACQUISITION REGULATION - PROPOSED REVISION DIGEST: GAO HAS NO OBJECTION TO A PROPOSAL TO ADD PARAGRAPH (N) TO FEDERAL ACQUISITION REGULATION SEC. 31.205-6 STATING THAT REBATES AND PURCHASE DISCOUNTS GRANTED BY A GOVERNMENT CONTRACTOR TO ITS EMPLOYEES ON PRODUCTS OR SERVICES PRODUCED BY THE CONTRACTOR ARE UNALLOWABLE. REQUESTING OUR COMMENTS ON A PROPOSAL TO CHANGE FEDERAL ACQUISITION REGULATION (FAR) SEC. 31.205-6 BY ADDING COVERAGE ON EMPLOYEE REBATES AND PURCHASE DISCOUNTS GRANTED BY A GOVERNMENT CONTRACTOR TO ITS EMPLOYEES ON PRODUCTS OR SERVICES PRODUCED BY THE CONTRACTOR ARE UNALLOWABLE. WE HAVE NO OBJECTION TO THE PROPOSAL.

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B-220819, NOV 12, 1985, OFFICE OF GENERAL COUNSEL

FEDERAL ACQUISITION REGULATION - PROPOSED REVISION DIGEST: GAO HAS NO OBJECTION TO A PROPOSAL TO ADD PARAGRAPH (N) TO FEDERAL ACQUISITION REGULATION SEC. 31.205-6 STATING THAT REBATES AND PURCHASE DISCOUNTS GRANTED BY A GOVERNMENT CONTRACTOR TO ITS EMPLOYEES ON PRODUCTS OR SERVICES PRODUCED BY THE CONTRACTOR ARE UNALLOWABLE.

MS. MARGRET A. WILLIS:

FAR SECRETARIAT

GENERAL SERVICES ADMINISTRATION

THIS RESPONDS TO YOUR LETTER OF OCTOBER 11, 1985, REQUESTING OUR COMMENTS ON A PROPOSAL TO CHANGE FEDERAL ACQUISITION REGULATION (FAR) SEC. 31.205-6 BY ADDING COVERAGE ON EMPLOYEE REBATES AND PURCHASE DISCOUNTS GRANTED BY A GOVERNMENT CONTRACTOR TO ITS EMPLOYEES ON PRODUCTS OR SERVICES PRODUCED BY THE CONTRACTOR ARE UNALLOWABLE.

WE HAVE NO OBJECTION TO THE PROPOSAL.

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