Reno54

H2H, Always fun especiallly this time of year.

Yes I did read the applicable FAR provisions in 29 and the cost principle at FAR 31.205-41 before asking the question. The provision states that Federal, State and local taxes are allowable and a Gross Receipts Sales Tax is obviously a State tax so I would assume it is an allowable cost. The term Gross Receipt Sales Tax is not a term normally encountered in our price breakdowns. Also in reading part 29 the question came up as to why is there only one specific clause that mentions gross receipts and why is it unique to New Mexico. I ask the question because I do not feel 100% confident that I have made the correct interpretation.

First I apologize as I may not have all of the facts that might be needed as I am researching for a coworker but if additional information is needed I can get it. The basic question is - Does anyone know if Gross Receipts Sales Tax is an allowable cost? Have a price proposal on an A/E design task order where one of the subcontractors has this cost as a separately priced item in their breakdown. Thanks for any help.

I am trying to find out if anyone knows of any authorizations other than 51.101 which permits the Government to allow a contractor to purchase items from Government Supply sources. As I read 51.101 the contract must be a cost-reimbursement or one under the Javits-Wagner O'Day Act or a contract that requires protection of security classified info. I have two cases that do not meet any of those requirements. First case involves an item in the JOC unit price book that is significantly under priced and the other involves a case where after award of the task order the contractor's supplier is saying they need the letter of authorization from the Government in order to provide the discounted price they quoted on. This contractor sent some "sample" letters they had been provided in the past and one of those authorized skateboard equipment connected to the Design/Build Skateboard Park contract. I am having trouble imagining how that one met the requirements of 51.101. All that being said I would very much like to help both of these contractors but so far have not found a way issue the requested letter. Any thoughts/solutions would be appreciated.