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PSAD-78-125 1 (1978-07-27)

handle is hein.gao/gaobaaxrp0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHMGTON. D.C. 2L48 6 B-158766 The Honorable Tom Steed, Chairman Subcommittee for Treasury--Postal Service--General Government Committee on Appropriations House of Representatives Dear Mr. Steed: By letter dated February 23, 1978, you expressed concern about an allegation of possible violation of Goveenment contracting procedures and reouested that the case be reviewed by us to determine if it is possible to circumvent existing controls. It was alleged that a contract could be obtained improperly by submitting a late, low bid after bid opening, through misuse of certified mail that made the bid appear to have been mailed before the bid opening. We reviewed contracting procedures from the Defense Acquisition Regulation and the Federal Procurement Regulations that govern the use of certilied mail and Postal Service regulations on certified mail. We also spoke with the appro- priate Postal Service, General Services Administration, and Department of Defense officials about the matters discussed in this report; we considered their views in preparing it. Our observations are summarized below; the results of this review are detailed in enclosure I. We found that it would be possible for a bidder to subvert late bid control procedures by improperly using certified mail under current Government procurement regula- tions and Postal Service procedures. To do this, a bidder could mail a certified letter with metered postage to himself and obtain a receipt showing the procurement organization as the addressee. After bid opening, the bidder's original envelope could be reopened; a new bid could be inserted, resealed, readdressed, and mailed. We noted, however, that there have been very few allegations of certified mail abuse to circumvent late bid procedures. PSAD-78-125 (950487)

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