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PSAD-80-77 1 (1980-09-26)

handle is hein.gao/gaobabbbt0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE W WASHINGTON, D.C. 20548 PROCUREMENT AND SYSTEMS ACQUISITION DIVISION B-200233 SEPTEMBER 26,1980 Ms. Karen Hastie Williams Administrator, office of Federal Procurement Policy Office of Management and Budget Dear Ms. Williams: Subject: should Small Purchases Be Exempt from Complying with Social and Economic Program Requirements3 (PSAD-80-77) since the Commission on Government Proc ent completed its work in 1972, we have issued eight status reports to the Congress on the progress being made in imple- menting the Commission's recommendations. Our final status report on the Commission's recommendations (PSAD-79-80) was issued on May 31, 1979, and expressed our concern that action on many reforms is far from complete and the momentum is slowing. We are now undertaking a series of studies to focus on specific problem areas and establish the need for improve- ments. Our first such study was just completed and involved an evaluation of Procurement Commission recommendation 44, which advocated raising to $10,000 the minimum level at which social and economic programs are applied to the procurement process. Our objectives were to determine if the action recom- mended was still warranted and if the office of Federal Procurement Policy (OFPP) was actively pursuing implementa- tion. Based on our work, we concluded that social and eco- nomic program requirements should not be applied below some inimum threshold, such as the small purchases thresnold (currently $10,000), and that consideration be given to adding an escalator clause to alleviate the need for frequent legis- lative updates. Higher and-more uniform threshold levels would help streamline administration, and the attention now devoted to lower dollar value contracts could be used to pro- vide better enforcement on contracts above the small pur- chase threshold. 111(950592) 113411

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