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PLRD-81-68 1 (1981-09-30)

handle is hein.gao/gaobabcly0001 and id is 1 raw text is: 3 UNITED STATES GENERAL ACCOUNTINGOFICE WASHINGTON, D.C. 20548 PROCUREMENT, LOGISTICS. AND REAOINESS DIVISION B-2 01537 SEPTEMBER 30, 1981 The Honorable Samuel R. Pierce, Jr. Secretary of Housing and Urban Development 116509 Dear Mr. Secretary: Subject: HUD's Oversight of Procurement by Public Housing Authorities Needs Strengthening (PLRD-81-68) This report summarizes the results of our review of selected housing authorities' procurement practices. We visited six housing authorities in Pennsylvania, Louisiana, Texas, and Missouri to evaluate the adequacy of their procurement of goods and services and the procurement assistance and monitoring the Department of Housing and Urban Development (HUD) was providing. In summary, we found that personnel responsible for procure- ment at the six housing authorities frequently lacked the skills and knowledge about the techniques needed to make efficient and economical buys. As a result, there was no assurance that competi- tion was being obtained to the maximum extent feasible or that pay- ments were being made for goods actually delivered or for services actually performed. We also found that your agency's periodic reviews of the authorities' procurement practices did not disclose the situations we found. We believe this happened because HUD's guidance is much too general to its staff charged with making these periodic reviews. Although we had developed only a few examples of the bad effect resulting from the poor procurement practices, we believed that the lack of procurement skills and techniques and the failure of HUD audits to disclose these problems needed prompt attention and action. Therefore, early in our review, we brought our find- ings to the attention of the Acting Deputy Assistant Secretary for Public Housing and Indian Affairs. The Acting Deputy Assistant Secretary agreed with, and responded quickly and constructively to, our observations and stated that the following actions were under- way or would soon be started: --A procurement handbook had been drafted for the authorities' use and would scon be issued. --A procurement training program will be developed. (950628) . . .. j

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