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B-196742 1 (1980-01-03)

handle is hein.gao/gaobabjfw0001 and id is 1 raw text is: h.m U L .1 L.Iit GAO Un-ted States General Acco'inting Office Office of Washington, DC 20548 General Countel In Reply Refert _196742 JAN 3 198M Vhe Hono-able 1111 Alexancot0U0tPublic flreciiszs 1,T House of fepresentatives rnar Hr. Alexander: We refer to your letter dated October 26, 1979, recjuestin9! a determination ihether FMC Corporation is entitled to an increase in contract price to cover the cost of Federal Excise Taxes (PfT). In its letter to you, F ICrequested that 0AO issue a Certificate of folief from FEI. We'point out that GIAO does not have such authority. |owever, we reviewed this matter to determine whether the contract may be reformed to provide for reimbursement or whether the contract price may be corrected Iue to a mistake. We have determined that such relief is not warranted. *t In riay 1978, the Air Porce avarded a contract to FMC for 24 hydraulic sewer cleaners. flased on the erro- ,.J' I neous belief that FIT was inaplidble to this procure- H ment, r::C did not include ah amount\ for ET in its offer.I In so doing, FMC relied on its interpretation of pro- visions of the Defense Acquisition gT.erulation (DAR) t 4 and on its paut experience with other G1vernhment con- tracts. F'!C alleged after contract award a nistake of 27,891.41 In its offer price, the amount of FE'T. Robins Air Force 3ase, Georgia denied F;MC's request for an increase in its contract price and, subse- quently, FMC requested that you submit the matter , to GAO. The request for pro,-osals (nro) advised all offorors that the solicitation and any resultant con- tract were cubject to the terms of' the arner Robins 'lster Solicitation. Referencr number 15 of the master solicitation d r.iqnates fl? n 7-lD3.1?(a) as a ror-ral Provision of the .soilicitation. fthis provision &-rovides that the p rice Lid !hall include il n-;licblo Fec.ral, state, an& local taxe- and duties. in previous .% I 1- Li I,

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