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DOCUMENT RESUME
03581 - [A2513635]
Social Security Administration Procurement Procedures with
Regard to a Multiple Award Contract and its Maximum Order
Limitation. HRD-77-144; B-164031(4). August 31, 1977. 6 pp.
Report to Rep. .. Kenneth Robinson; by Gregory J. Ahart,
ri.rector, Human Resources Div.
Issue Area: ?deral Procurement of Goods and Services:
Reasonableness of Prices Under Negotiated Contracts and
Subcontracts (1904).
Contpt! Human Resources Div.
Budget Function: General Government: General Property and
Records Management (804).
Organizaticn Ccncerned: General Services Administration; Social
Security Administration.
Congressional Relevance: Rep. J. Kenneth Robinson.
Authority: 41 C.F.R. 101-26, 401(a).
Concerns were expressed about Social Security
Administration ISSA) practices in the procurement of standard
forms. An ezamination was conducted to determine whether
regalations were being circumvented and whether the concept of
Maximum Order Limitation (MOL) was being properly used. MOL
allows Federal agencies to purchase supply items under contract
up to a specific dollar amount after which competitive Lids
would have to be submitted through the General Setvices
Administration (GSA). Findings/Conclusions: The complaiiiant
alleged that he was called by an SSA employee who requested
pricing information on two items, including 450,000 sheets of
form 1292. He provided this information and believed taat his
company had the lowest price for form 1292. He was told that
this item would not be procured through competitive bids because
of time limitations, although the price was over the HOL.
Subsequently, 284,375 sheets of this item were purchased from a
competing vendor after it had reduced its prices. When the
complainant inquired about orders on form 1292, he was told that
there would be no orders and that the pricir.g rquest was for
information only. The Associate Commissioner of SSA stated that
his procurement people did not solicit bids to compare prices, a
practice forbidden by regiulations. Since this point could not he
proven and steps were being taken to improve procurement
procedures, further pursuance of the matter was not warranted.
There is nothing in the regulations to prevent the agency from
reducing quantities to fall within the MOL. (HTW)](ViewImageLocal?handle=hein.gao/gaobaacqv0001&div=1&collection=&method=preview&ext=.png&size=3)