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GAO-02-56R 1 (2001-12-17)

handle is hein.gao/gaobadxfu0001 and id is 1 raw text is: £ 7=Accountabilty * Integrity * Reliability United States General Accounting Office Washington, DC 20548 December 17, 2001 Mr. David A. Drabkin Deputy Associate Administrator U.S. General Services Administration Office of Acquisition Policy 1800 F Street, N.W. Washington, DC 20405 Subject: GSA's Guidance and Oversight Concerning Areawide Utility Contracts Dear Mr. Drabkin: In September 2001, we issued a report on the District of Columbia school system's use of a General Services Administration (GSA) areawide utility contract with the Washington Gas Light Company.' The school system has used this contract for $43 million worth of general facility improvements and maintenance-work that was outside the scope of the contract. In the report, we raised concerns about GSA's guidance on the use of areawide utility contracts. The guidance does not adequately indicate that, when the utility is not the only available source, services ordered under areawide contracts must be provided by the utility acting in its capacity as a public utility (i.e., subject to regulatory authority). Otherwise, the government's competitive contracting requirements apply. In addition, we found that GSA lacked oversight of the school system's use of the contract and was unaware of the scope of work ordered under it, largely because neither the school system nor Washington Gas complied with GSA's reporting requirements. This letter discusses these findings in greater detail and recommends actions that GSA can take to improve its oversight of areawide contracts and its guidance on their use. Background GSA is authorized by statute to prescribe policies and methods governing the acquisition and supply of utility services for federal agencies.2 Competition to 'See District of Columbia: D.C. Public Schools Inappropriately Used Gas Utility Contract for Renovations (GAO-01-963, Sept. 28, 2001). 2 See section 201 of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. sec. 481). GAO-02-56R GSA Areawide Utility Contracts

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