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B-220943 1 (1985-11-21)

handle is hein.gao/gaobabkqc0001 and id is 1 raw text is: 


                  -  J.3NITED STATES GENERAL ACCOUNTING OFFICE
                  .r ,,       WASHINGTON, D.C. 20548


OFFICE OF GENERAL COUNSEL


R-220943


November 21, 1985


Ms. Margaret A. Willis
PAR Secretariat
General Services Administration

Dear Ms. Willis:

     This responds to your letter of October 24, 198c,
requesting our comments on a proposal to add Federal
Acquisition Regulation (FAR) § 31.205-19(a)(5) to the FAR's
contract cost principles. The roosed addition would
state that premiums for retroactive or backdated insurance
written to cover occurred and known losses are not allow-
able as costs that may be recovered under government
contracts. This is PAR case No. 85-48.

     We have no objection to the proposed addition.

                              Sincerely yours,




                                  . Iran Cleve
                              General Counsel


_ Lr

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