GSA Airline Contracts

Pursuant to a congressional request, GAO reviewed the General Services Administration's (GSA) Federal Supply Service's (FSS) award of contracts to airlines for federal employee travel between designated cities, focusing on: (1) GSA contractor qualification and selection factors for awarding airline travel contracts; (2) one airline's 1990 contract award and contract performance; and (3) whether a contractor could sell its routes to another airline.

GAO found that: (1) FSS complied with Federal Acquisition Regulation requirements that it evaluate bidder qualifications for contract award; (2) FSS standards for awarding the contracts required a comparison of services and prices offered by bidders on routes between selected cities; (3) FSS determined that, although one airline was reorganizing under federal bankruptcy laws, it had the financial capability to perform its contract; (4) that airline serviced 219 of the 220 routes in its contract and offered seats at the government fare on most flights; and (5) FSS signed an agreement with the firm that purchased some of that airline's assets to service the contracted routes.