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B-184333 1 (1976-03-11)

handle is hein.gao/gaobaddei0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION <OF THE UNITED STATES VVASHINGTON, . C. 20548 I3 T FILE: B-184333 DATE: March 11, 1976 MATTER OF: Gulf Oil Trading Company 4 DIGEST: 1. Catalog or market price exemption from requirement of Cost Accounting Standards (CAS) Act is mandatory exemp- tion rather than discretionary with contracting agency. Therefore CAS requirements should not be imposed on contractor whenever catalog or market price exemption is determined to exist. 2. It is the offeror's responsibility to request and to provide justification for a catalog or market price exemption from CAS requirements. However, the contracting agency must make the determination whether the exemption applies in the particular case. 3. A negotiated price may be based on adequate price compe- tition and at same time be qualified for exemption from CAS requirements as catalog or market price. 4. Where low offeror claimed exemption from CAS on ground that its offered prices were based upon its established catalog or market prices, exemption should not have been denied solely because adequate price competition was obtained by agency. Recommendation is made that agency review claim and if basis for exemption existed then consideration be given to termination for convenience of contract awarded to second low offeror and award of terminated quantities to low offeror. Gulf Oil Trading Company has protested the determination that its offer in response to request for proposals DSA600-75-R-0292, issued by the Defense Supply Agency, was unacceptable because Gulf refused to be subject to the cost accounting standards (CAS) provision contained in the solicitation. Gulf contends that it was exempt from the CAS provision because its prices were based upon its established catalog or market prices. -1- PUBLISHErD DECISof 5G Cmp. Go.......

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