Acquisition Reform

The Federal Acquisition Streamlining Act of 1994 mandated the creation of a governmentwide Federal Acquisition Computer Network (FACNET) to enable federal agencies and vendors to do business electronically in a standard way and to move the government's procurement process away from paper. It was expected that FACNET would be used for competitive contracts valued at between $2,500 and $100,000. This report discusses contracts that fall within that dollar range that are not suitable for acquisition through a system with full FACNET capability. GAO identifies the characteristics of contract actions that agencies have concluded are not suitable for FACNET processing and evaluates the reasonableness and consistency of agencies' explanations as to why those contracts were unsuitable for FACNET. GAO also analyzes governmentwide electronic commerce statistics to determine agencies' use of FACNET and other electronic commerce purchasing methods.

GAO noted that: (1) senior procurement officials generally found contracts unsuitable for FACNET when: (a) widespread public solicitation of offers was inappropriate; (b) transmitting essential contracting information through the network was not practical or feasible; or (c) alternative purchasing methods were faster and more efficient; (2) the agencies provided clear, reasonable, and consistent business and technical reasons why numerous types of contracts should be excluded from mandatory FACNET processing; (3) available data showed continuing limited use of FACNET for contract awards; (4) however, there is no governmentwide data available on agencies' use of other EC purchasing methods; (5) consequently, it is difficult to assess the government's overall progress in doing business electronically in a standard way; and (6) governmentwide EC statistical information may not be available until the year 2000.