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B-219338 1 (1987-06-02)

handle is hein.gao/gaobadomm0001 and id is 1 raw text is: 
         Comptoller General
         of the tifnie States
B..-,ngon          V*4k



           B-219338
           June 2, 1987


           The Honorable Glenn English
           Chairman, Subcommittee on Government Information,
             Justice and Agriculture
           Committee on Government Operations
           House of R(epresentatives

           Dear Mr. Chairman:

           This is in response to your inquiry of September 4,
           1985, concerning a price provision in the contract
           awarded in September 1984 between the Department of
           Agriculture (DOA) and hartin Marietta Data Systems
           (MIMDS) for the development and operation of an elec-
           tronic dissemination of information system (EDI),  The
           contract contemplates the EDI being furnished to two
           separate user groups. Level I users consist of bulk
           data users in the private sector who generally are
           expected to reararket the data to private end-users.
           Level 2 users consist of the various components of DOA.
           Rates for data dissemination services to Level 2 users
           are fixed by the contract. Level I users pay MMDS
           directly based upon a price schedule developed by !MDS.

           Under the contract, in addition to a volume discount
           offered DOA based upon DOA's Level 2 usage during an
           account period (monthly), the contract specifically
           provides for a further credit against billings to the
           Government based upon 10 percent of the revenues
           received by MMDS from Level I users during the prior
           accounting period.

           You expressed concern as to the legal propriety of the
           arrangement under which the Department of Agriculture
           accepts a 10 percent credit against its billing based
           upon services provided to the public by MMDS, and asked
           whether this arrangement constituted a barter, a user
           fee or something else. You also asked that we determine
           the legality of the arrangement.

           As a result of your inquiry we requested and received a
           report on this matter from the Office of Information

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