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NSIAD-83-1 1 (1983-07-29)

handle is hein.gao/gaobabnbd0001 and id is 1 raw text is: gD A268 -7 UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON. D.C, 20548 NATIONAL SECURITY AND TERNATIONAL AFFAIRS OIVISION B-211991 JULY 29, 1983 The Honorable Edwin B. Forsythe Ranking Minority Member Committee on Merchant Marine and Fisheries House of Representatives Dear Mr. Forsythe: Subject: Panama Canal Commission Procurement and Contracting (GAO/NSIAD-83-1) This report is in response to a request that GAO review the adequacy of the Panama Canal Commission's procedures for buying goods and services and how well these procedures are applied. Details are discussed in enclosure 1. The Commission generally followed acceptable procedures, with some minor exceptions, when procuring by formal advertis- ing. However, in procuring by negotiation the Commission's practices did not, in most cases, conform to acceptable proce- dures for agencies of the U.S. Government. As a result, assur- ances were lacking that prices negotiated and paid by the Com- mission were fair and reasonable. Commission officials believe they have done a good job of buying goods and services even though they acknowledge less than full compliance with certain requirements. Executive Order 12352 dated March 17, 1982, calls for each executive agency to appoint a Procurement Executive and requires that the Procurement Executive position be so placed in the agency that (1) independence is ensured in making procurement reforms, and (2) the appointee has clear lines of authority so that accountability will be directly to the head of the agency. In response to the Executive Order, the Commission appointed a Procurement Executive on November 10, 1982. At this time, how- ever, the designated Procurement Executive is serving in that capacity on a part-time basis, his authority and responsibility have not been established, and procurement reforms called for in the Executive Order have not been instituted. Because the pro- curement actions we examined preceded the naming of the Procurement Executive, the effect of the appointment is not assessed in this report. (487080) QL29/

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