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GGD-77-14 1 (1976-12-28)

handle is hein.gao/gaobaavne0001 and id is 1 raw text is: 


DOCOENT RESOE


00441 - (AOS90843J (Restricted)
Review of Posti.1 Service Bail Trucking Contract Awards.
GGD-77-14; B-114874. December 28, 1976. 7 pp.

Report to Rep. Ronald V. Dellums; by Victor L. Lowu, Director,
General Government Div.

issue Area: Federal Procurement of Goods and Services (1900).
Contact: General Government Div'.
Budget Function: Commerce and Transportation: Postal Service
     (402).
organization Concerned: Postal Service.
Congressional Relevance: Rep. Ronald V. Dellums.

         Postal Service contracting activities for highway
trauisportatJon of mail were reviewed. The revieu focused on
whe:her: small firms were being denied an opportunity to obtain
contracts; wide variances in bids were unusual; firms awarded
mail transportation contracts were later given improper price
increases; and bonding companies were misusing bid information
received from competing transportation firms.
Findings/Conclusions: Virtually all main highway contracts are
awarded through formal advertising. Officials believe that 99
percent of the highway transportation contractors are small
businesses. The wide variations are not unusual; the differences
sees to be the result of the economic or competitive position of
the bidder. Large computation errors in bids were noted. Price
adjustments to contj-actors were generally due to inflation and
were generally in accordance with postal regulations. No
indication was found that bid information was misused by bonding
compaaies. (eRS)

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