HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.gao/gaobadrii0001 and id is 1 raw text is:
318
B-250377
January 28, 1993
David P. Holmes
Acting General Counsel
Central Intelligence Agency
Dear Mr. Holmes:
This responds to your letter dated August 27, 1-92, to
James F. Hinchman, General Counsel, General Accounting
Office, seeking guidance on whether certain costs are
appropriate for recovery as actual costs under the Economy
Act. In the interest of national security, you have not
identified specific transactions and the related details,
1.g., the performing agency, the goods and services
provided, the reason standard costs are used, and the method
used to establish standard costs.
Accordingly, we have not directly answered your specific
questions because the lack of details would require us to
substantially qualify our response. Instead, we offer a
general discussion of the issues raised by your letter,
which we trust will assist the CIA in determining the
propriety of charges for items or services under the Economy
Act and in resolving any disagreements between the CIA and
other agencies.
Economy Act Requirement to Reimburse Actual Costs
The Economy Act' authorizes one agency to place an order
for goods or services with another agency under the
circumstances specified in the Act. The ordering agency
must reimburse the performing agency based on the actual
cost of the goods or services provided. Specifically,
Payment [for interagency transfers of goods or
services] may be in advance or on providing the
goods or services ordered and shall be for any
part of the estimated or actual cost as determined
by the agency or unit filling the order ....
Proper adjustment of amounts paid in advance shall
be made as agreed to by the heads of the agencies
'31](ViewImageLocal?handle=hein.gao/gaobadrii0001&div=1&collection=&method=preview&ext=.png&size=3)