OFPP pushes decision on audit, price clauses to end of August

OFPP pushes decision on audit, price clauses to end of August

Administrator Deidre

By Christopher J. Dorobek

GCN Staff

The Office of Federal Procurement Policy will miss its deadline for responding to a petition by industry groups asking that OFPP rescind the audit and price adjustment clauses of the General Services Administration's schedule contracts.

OFPP administrator Deidre A. Lee said late last month that she hopes to have her response and a decision ready by Aug. 30.

The petition, submitted June 1 by the Government Electronic and Information Technology Association of Arlington, Va., was the first of its kind filed under a clause of the OFPP Authorization Act [GCN, June 7, Page 1]. The provision gives the OFPP administrator 60 days to respond. Lee, however, acknowledged late last month that she would miss the deadline.

Under the provision, the OFPP administrator has considerable leeway about what action to take. She can void the provisions or she can determine that the petition is not valid.

The audit clause lets GSA review vendors' records for overbillings and billing errors, and to see whether vendors are giving government prices the best price offered to any customer. The price adjustment clause lets GSA reduce contract prices if post-award reviews of company records show a vendor did not offer government buyers its best price.

GSA officials have said the petition is without merit.

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