GAO Weighs In On Federal Agency Appropriations Rule

Law360, New York (August 16, 2013, 8:17 PM ET) -- When a federal agency agrees to alter a cost-reimbursement contract, it should make sure the modified terms with its contractors satisfy federal requirements that restrict obtaining appropriations for future needs, the U.S. Government Accountability Office said Friday, responding to a question from the Department of Health and Human Services.

The GAO's decision is in response to questions by the HHS's Office of the Inspector General about how to apply the so-called bona fide needs rule to a cost-reimbursement contract that the U.S. National Cancer Institute entered...
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