[Government Printing Office: Treatment of Prompt Payment Discounts]

The Internal Revenue Service requested a decision on whether the Government Printing Office (GPO): (1) must pass on prompt payment discounts received from commercial printers directly to agencies ordering printing from GPO; and (2) may use the discount to offset indirect costs that it recovers through a surcharge applied to all procured printing. GAO held that: (1) GPO's decision not to pass on prompt payment discounts received from commercial printers directly to federal agencies ordering printing from GPO does not violate any specific statutory or other legal principle; and (2) GPO may continue to use prompt payment discounts to offset indirect costs and reduce the surcharge that it applies to all procured printing to recover indirect costs. Accordingly, GAO is not required to pass on prompt payment discounts.