GSA Nonstores Procurement Program Falls Far Short of Its Objectives

GAO reported on the General Services Administration's (GSA) nonstores program which is managed by several GSA organizational elements and provides items not generally available through GSA stores or Federal Supply Schedule (FSS) programs. Although the nonstores program is the smallest of the three GSA procurement programs, its large sales volume warranted detailed examination by GAO to identify opportunities for more efficient and effective management.

GAO found that the nonstores program had fallen short of efficiently and economically procuring commodities for agencies. This was due to the GSA: (1) failure to consolidate customer motor vehicle requirements and achieve the benefits of volume procurement, (2) entry into restrictive interagency procurement agreements, and (3) performance of procurement functions which could be accomplished adequately by its customers. Improved management of the program could result in: (1) savings of millions of dollars each year through greater motor vehicle consolidation, (2) significant reductions in sole-source procurements, (3) more effective contract award procedures to assure reasonable prices, and (4) better use of limited GSA resources by avoiding duplication of existing GSA procurement programs. Federal Property Management Regulations require that at least 75 percent of an agency's total amount of motor vehicle and light truck requirements be submitted to GSA for inclusion in four annual consolidated procurements. In the past 4 years, the GSA automobile consolidation record has varied considerably, ranging from 3 to 55 percent of total procurements. GSA is further hampered by agreements with the Agency for International Development (AID) and the Department of State which require GSA to purchase items on an extensive sole-source basis, which GAO believes could be procured competitively. In their efforts to provide customers with nonstores items, the GSA regions are unnecessarily placing orders for FSS items to be procured through the nonstores program.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Robert M. Gilroy Team: General Accounting Office: Procurement, Logistics, and Readiness Division Phone: (202) 275-4268