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DOCUNIIT RISUNU
04689 - [B0185082]
[Survey of Service Contracta Awarded by Local Authorities].
PSAD-78-10; B-167637. January 17, 1978. 4 pp. + enclosure (1
pp.).
Report to Secretary* Department of Housing and Urban
Development; by Henry Eschwegee Director, Community and Economic
Develofeent Div.
Issue Area: federal Procurement of Goods and Services (19001;
Federal Procurement of Goods and Se£vies Mtiffying tho
Congress of Status of Important Procurement Programs 41905),
Contact: Procurement and Systems acquisition Dlv.
Budget Function: General Government: Generil Property and
Records Management (804).
Congressional Relevance: House Committee on Banking, Currency
and Housing; Senate Committee on Banking# Housing and Urban
Affairs.
A review of the aethods aced in awarding contracts for
elevator maintenance and repair work at selected Public Housing
Authorities (PSAs) in the Departseat of Sousing and Urhbn
Develofsent (HUD) Region V indicated that the PHAs were not
obtaining effective competition for maintenance and tepair
contracts. Findings/Conclusions: Sixty-eight contracts,
involving payments of S415,888 during 1976, had existed for
periods ranging from 3 to 13 years., Pour PhAs had negotiated 31
of these contracts with elevator manufacturers and continued
these arrangements under options for an extended period.
Generally, the PeAs could not locdte appropriate BUD approval
for either renewal options or contract periods beyond 2 years.
Consolidation of eleva...or maintenance contracts results in
luced contract administration and lover costs. However# only 3
PHAs had combined ovetall requirements under blanket contracts.
Savings resulting from competitive bidding for e3evator
maintenance contracts were reported by Puas in Chicago and
Indianapolis. Recomendations: The Secretary of Housing and
Urban Cevelopsent should: instruct field offices in Sagion V to
take steps to insure the PeAs obtain competition and consolidate
requirements for elevator maintenance to the extent possible;
insure that within Region V. apr&ovals are obtained fo: either
renewal options or use of contract periods beyond 2 years; and
determine whether the problem found in Region V exists in other
regions, and if it does, take appropriate corrective action.
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