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B-183705 1 (1975-12-10)

handle is hein.gao/gaobadcqj0001 and id is 1 raw text is: * c,%,LER 6 K/ '. pTHE COMPTROLLER GENERAL DECISION A OF THE UNITED STATES WASHINGTON. D. C. 20548 FILE: DATE:December 10, 1975 B-183705 MATTER OF: Marketing Consultants International Limited DIGEST: 1. Contract for computer time/timesharing services to prime contractor who has commercial arrangements with potential subcontractors to pay standard percentage of invoice fee for finding buyer of computer time and/or services does not violate Anti-Kickback Act (41 U.S.C. § 51 (1970)) because commercial arrangement does not apply and prime contractor receives fee according to sliding matrix from Government only. 2. Conflict between two contract provisions concerning who pays prime contractor's fee, subcontractor or Government, is resolved in favor of Government payment since that interpreta- tion upholds validity of contract in accord with presumption of legality. Contrary interpretation might lead to conclusion contract violated Anti-Kickback Act. 3. Fact that prime contractor of computer time/timesharing con- tract may have developed commercial clientele whose abilities it knows does not unduly restrict competition since no potential subcontractor is prohibited from submitting proposal which prime contractor must consider. 4. Contract payment procedure whereby prime contractor's fee is determined as percentage of fixed-price subcontractor proposal does not violate prohibition of 10 U.S.C. § 2306(a) against cost-plus-a-percentage-of-costcontracting. 5. Alternate contract payment procedure, whereby prime contractor's fee is percentage of subcontractor's invoice, and there is no requirement that subcontractor submit fixed-price proposal, violates prohibition of 10 U.S.C. § 2306(a) against cost-plus- a-percentage-of-cost since (1) payment is based on predetermined PUBLISIED DECISIO 55 Comp. Gen..

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