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  1. FFP contract award date is 5/29/2015. The contract includes FAR 52.229-3. Also on 5/29/2015, Puerto Rico signs into law Act No, 72, which increases the sales and use tax rate from 6 percent to 10.5 percent effective beginning on 7/1/2015. The way that I read FAR 52.229-3, the contract price includes local taxes in effect on the contract date. This tax increase was not in effect on the contract date and thus is not included in the contract price. That much seems clear. While the prime contract is not impacted in light of FAR 29.303, the subcontractors are now billing the prime for the tax increase and the prime wants to pass those increased costs along to the Government. However, in reading of FAR 52.229-3, when it discusses after-imposed taxes allowing for an increase it contract price it mentions only Federal taxes. It is silent on State and local taxes. In contrast, FAR 52.229-4 explicitly mentions State and local taxes alongside Federal taxes in discussing after-imposed taxes. This difference seems intentional. Should the government pay the after-imposed local (Puerto Rico) taxes?