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B-199079 1 (1983-12-23)

handle is hein.gao/gaobadlme0001 and id is 1 raw text is: 

                        TME COMPTROLLER GENERAL
O   CISION    .. O P THE UNITED STATUS
                       ' WASHINGTON. D.C. 20548




FILE:    B-199079             DATE: December 23, 1983

MATTER OF:      GSA--Multiple Award Schedule Multiyear
                Contracting

DIGEST:
             1. Proposed Office of Federal Supply and
                 Service, General Services Administra-
                 tion program of multiyear contracting
                 in connection with Multiple Award
                 Schedule does not violate 31 U.S.C.
                 S 1341(a)(1)(B) or 41 U.S.C. S 11,
                 because MAS agreements do not give
                 rise to binding commitments obligat-
                 ing the Government to expend funds
                 unless and until agencies issue pur-
                 chase order and agencies will not
                 make the administrative determina-
                 tions necessary for placing order
                 until after appropriations have been
                 made for purchases.. 42 Comp. Gen.
                 272 (1962) distinguished.

             2. Proposed Office of Federal Supply and
                 Service (FSS), General Services
                 Administration program of multiyear
                 contracting in connection with
                 Multiple Award Schedule (MAS) does
                 not violate 31 U.S.C. S 1502 since
                 under FSS program, binding commitment
                 obligating Government to expend funds
                 is not made until the time of order-
                 ing MAS item and current appropria-
                 tion, not appropriation of year MAS
                 agreement entered into, is charged - '
                 60 Comp. Gen. 219.   Ruling A-60589,
                 July 25, 1935 superseded by Federal
                 Property and Administrative Services
                 Act of 1949.

              3. Procurements under proposed Office of
                 Federal Supply and Service (FSS),
                 General Services Administration pro-
                 gram of multiyear contracting in con-
                 nection with Multiple Award Schedule
                 (MAS) would not be in derogation of
                 purpose of Federal advertising statu-
                 tes. Since MAS agreements contain a
                 price reduction clause which allows
                 Government to take advantage of fall-
                 ing prices occurring in market place

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