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B-204776 1 (1981-10-05)

handle is hein.gao/gaobabkfh0001 and id is 1 raw text is: 




           0~        UNITED STATES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20548


OFFICE OF GENERAL COUNSEL
                                            October 5, 1981
        B-204776




        Mr. William J. Maraist
        Assistant Administrator
          for Regulations
        Office of Federal Procurement
          Policy
        Office of Management and Budget

        Dear Mr. Maraist:

             By memorandum dated August 27, 1981, with enclosures,
        you forwarded for our review and comment a segment of
        the draft Federal Acquisition Regulation (FAR) regarding
        the decision to acquire equipment by lease or purchase
        (FAR subpart 7.4), negotiating advance agreements for
        independent research and development/bid and proposal
        costs (FAR subpart 42.10), and the use of Government
        supply sources and motor pools by contractors performing
        cost-reimbusement contracts (FAR part 51).

             The proposed FAR § 51.202(a)(2) requires that
        contractors who are authorized to use interagency motor
        pool vehicles obtain automobile liability insurance for
        the protection of the contractor and Government against
        losses and claims resulting from the contractor's use of
        the vehicles. In a-157729, November 8, 1965, we recom-
        mended that the self-insurance policies of the Government
        be applied to these risks and that the contracting agencies
        be responsible for these losses in the same manner as they
        are responsible when motor pool vehicles are operated by
        their own employees. We continue in this view.

             We have no comments on the other proposed regulations.

                            Sincerely yours,




                            Harry R. Van Cleve
                            Acting General Counsel                 V-




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