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B-183079 1 (1977-10-27)

handle is hein.gao/gaobabjkq0001 and id is 1 raw text is: *4.01?..5 31.1 COMPTROLLER GENEKIAL OF THE UNITED STATES Wr4? WASHINGYOL. D.C. US1* 0-183079 OCT 2 7 1977 The Honorable Lawton Chiles . Chairman, Subcommittee on Federal Spending Practices and Open Government Committee on Governmental Affairs United States Senate Dear Mr. Chairmans Yoqr subcommittee furnished S. 1264/dated September 21, 1977 Act of-1977. us a revised version of t the Federal Acquisition We note that section 509(c)(3) and (5) would still permit waivers, under certain conditions, of the provisions of the Cost Accounting Standards Act and the Renegotiation Act, We believe that the responsibility for granting waivers to Cost Accounting Standards should be ltt with the Cost Accounting Standards Boird and waivers to the Renegotiation Act should be left with the Congress which is now reconsid- ering amendments to the act, We have the following comments on additions or changes that have been made to the billsi --Section 304(a)(2)(B) provides that notice of intent to award a contract stemming from an unsolicited proposal shall be publicized prior to the award. We believe that the act should require publication 30 days in advance of the award. The publication should be worded so as to avoid disclosing the methodology of the unsolicited proposal to other prospective contractors. --Section 505 should provide that progress payments shall not exceed costs incurred and paid for by the contrco.tor. In two cases in the past year, we found that progress payments had exceeded costs incurred by substantial amounts. This, in effect, resulted in interest-free loans by the Government to the contractors involved. --Section 306(c) provides that inspections and examinations of contractor plants and records by executive agencies shall be conducted only 'c.1 22 J . #

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