Federal Supply Service Multiple Award Program Contracting Procedures

Gao ID: PSAD-77-87 March 11, 1977

The Federal Supply Service (FSS) needs to improve its evaluations of contractors' proposal prices in the award of multiple award schedule contracts. There are doubts concerning the appropriateness of benchmarks established and whether FSS negotiates the best possible prices.

A review of eight multiple award schedules showed that the contractor with the best offer often was not chosen as the benchmark contractor, and there was not adequate support to justify any other selection. Procurement files for the eight schedules did not include a memorandum of price negotiations required by Federal Procurement Regulations, so that the criteria used in negotiating contracts could not be ascertained. Without a formal record of negotiations, there is no assurance that all significant factors were considered or that the negotiated prices were fair and reasonable.

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.

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