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DOCUMENT BESUME
02961 - (A2073165J
[Procurement Practices at the Defense Fuel Supply Center].
PSAD-77-146; B-189042. Jujy 25, 1977. 2 pp.
Report to Rep. Guy Tucker; by Robert F. Keller, Deputy
Comptroller General.
Issue Area: Federal Procurement of Goods and Services (1900).
Contact: Procurement and Systems Acquisition Div.
Budget Function: National Defense: Department of Defense -
Procurement & Contracts (058).
Organization Concerned: Department of Defense; Department of
Defense: Defense Fuel Supply Center, Alexandria, VA;
Department of the Air Force; Parker Solvents Co., Inc.;
Small Business Administration.
Congressional Relevance: Rep. Guy Tucker.
There have been allegations of poor procurement
practices at the Defense Fuel Supply Center. Parker Solvents
Company, Inc., claimed that it was not notified when the
procurement responsibility foz solvents was switched from the
Little Rock Air Force Base to the Fuel Supply Center and that it
had bid a lower price than the firm that was awarded a contract.
Findings/Conclusions: The contract award at the higher price
occurred because the base solicited and obtained a bid from
Parker without knowledge that the Fuel Supply Center had already
filled the base requirement throi'gh another contract awarded at
a higher price 2 months earlier. A review of the procedures usel
to notify fuel and petrochemical suppliers where their bids
should be submitted showed that local installation suppliers are
not notified when bids for their products are no longer
solicited locall, but, instead, are being solicited centrally
from th, ?uel Supply Center. The Defense Logistics Agency has
agreed to require activities such as the Air Fcrce base to
forward the names and addresses of past local suppliers of
petroleum products to it so that the Center may send a bidder's
list application to the local suppliers and inform them of
centralized procurement solicitations and procedures. The Agency
asserted that this was the only known case within the past year
where a local supplier was inadver*ently deprived of the
opportunity to bid on petroleum products. The Agency will
conduct a cost comparison review of Evecific petroleum products
to determine if solicitations should be made centrally or by
local installations. (SC)](ViewImageLocal?handle=hein.gao/gaobaacmx0001&div=1&collection=&method=preview&ext=.png&size=3)