[Propriety of Use of Electronic Data Interchange Technologies to Create Contractual Obligations]

The National Institute of Standards and Technology (NIST) requested a decision regarding whether federal agencies could use electronic data interchange (EDI) technologies to create valid contractual obligations consistent with federal regulations. GAO held that although the terms of contracts formed using EDI were stored in a different manner than traditional contracts, federal law could be interpreted to accommodate such technological advancements. Accordingly, agencies could create valid obligations using EDI systems which met NIST security and privacy standards.