B-220943, NOV 21, 1985, OFFICE OF GENERAL COUNSEL
Highlights
FEDERAL ACQUISITION REGULATION - PROPOSED REVISION DIGEST: GAO HAS NO OBJECTION TO THE PROPOSED ADDITION OF FEDERAL ACQUISITION REGULATION (FAR) SEC. 31.205-19(A)(5) TO THE FAR'S CONTRACT COST PRINCIPLES WHICH WOULD STATE THAT PREMIUMS FOR RETROACTIVE OR BACKDATED INSURANCE WRITTEN TO COVER OCCURRED AND KNOWN LOSSES ARE UNALLOWABLE. THE PROPOSED ADDITION WOULD STATE THAT PREMIUMS FOR RETROACTIVE OR BACKDATED INSURANCE WRITTEN TO COVER OCCURRED AND KNOWN LOSSES ARE NOT ALLOWABLE AS COSTS THAT MAY BE RECOVERED UNDER GOVERNMENT CONTRACTS. THIS IS FAR CASE NO. 85-48. WE HAVE NO OBJECTION TO THE PROPOSED ADDITION.
B-220943, NOV 21, 1985, OFFICE OF GENERAL COUNSEL
FEDERAL ACQUISITION REGULATION - PROPOSED REVISION DIGEST: GAO HAS NO OBJECTION TO THE PROPOSED ADDITION OF FEDERAL ACQUISITION REGULATION (FAR) SEC. 31.205-19(A)(5) TO THE FAR'S CONTRACT COST PRINCIPLES WHICH WOULD STATE THAT PREMIUMS FOR RETROACTIVE OR BACKDATED INSURANCE WRITTEN TO COVER OCCURRED AND KNOWN LOSSES ARE UNALLOWABLE.
MS. MARGARET A. WILLIS:
FAR SECRETARIAT
GENERAL SERVICES ADMINISTRATION
THIS RESPONDS TO YOUR LETTER OF OCTOBER 24, 1985, REQUESTING OUR COMMENTS ON A PROPOSAL TO ADD FEDERAL ACQUISITION REGULATION (FAR) SEC. 31.205- 19(A)(5) TO THE FAR'S CONTRACT COST PRINCIPLES. THE PROPOSED ADDITION WOULD STATE THAT PREMIUMS FOR RETROACTIVE OR BACKDATED INSURANCE WRITTEN TO COVER OCCURRED AND KNOWN LOSSES ARE NOT ALLOWABLE AS COSTS THAT MAY BE RECOVERED UNDER GOVERNMENT CONTRACTS. THIS IS FAR CASE NO. 85-48.
WE HAVE NO OBJECTION TO THE PROPOSED ADDITION.