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B-202119 1 (1981-05-04)

handle is hein.gao/gaobabjcj0001 and id is 1 raw text is: 


                     UNITED STATES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20548


OFFICE OF GENERAL COUNSEL

         B-202119                   May 4 , 1981

                                           ;t

         Mr. William J. Maraist                        ' abj6        .
         Assistant Administrator for
           Regulations
         Office of Federal Procurement
           Policy
         Office of Managementand Budget
         Executive Office of the--President

         Dear Mr. Maraist:

             By letter of February 6, 1981, you requested our fcomments
         on a draft segment of the Federal Acquisition Regulation cov-
         ering Sb      7, Contractor Versus Government Performance?
         The subpart prescribes policies and procedures for use in
         acquisitions subject to Office of Management and Budget Cir-
         cular A-76, Policies for Acquiring Commercial or Industrial
         Products and Services Needed by the Government, and its Cost
         Comparison Handbook, Supplement No. 1.

             At the outset we note that while Circular A-76 is contro-
         versial, and the procedures established to implement it have
         not been completely accepted by all interested parties,
         including us, we support the general policy of the circular.
         However, we believe sections 7.306(a) and (b) of the draft
         segment should be revised to clarify that bids and offers will
         be evaluated in accordance with the terms of the solicitation
         and applicable regulations, such as adjustments for prompt
         payment discounts or the Buy American Act, prior to being com-
         pared to the Government cost estimate of in-house performance.

             We have no further comments to offer.

                                    Sincerely yours,




                                    Harry R. Van Cleve
                                    Acting General Counsel







                               '57b8

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