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GGD-82-61 1 (1982-03-24)

handle is hein.gao/gaobabdbs0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 March 24, 1982 GENERAL GOVERNMENT DIVISION Mr. Joseph T. Davis Associate Commissioner (Policy and Management) Internal Revenue Service Dear Mr. Davis: Subject: Excessive Specifications Are Limiting Competition for IRS Special Design Tax Return Folders (GGD-82-61) This report, originating from our review of restrictive conditions and specifications in solicitations and contracts, concerns the Internal Revenue Service's (IRS's) formally advertised, fixed-price contracts numbered TIR 81-63, -64, and -65. These contracts total $440,480.61 for the procurement of 6,338,000 Special Design Tax Return Folders. However, IRS is achieving only limited competition for the procurement of these folders because of certain contract specifications. Our evalua- tion of IRS's actual needs indicate these contract specifications may be excessive. OBJECTIVE, SCOPE, AND METHODOLOGY The objective of this review was to identify restrictive specifications and conditions in large, recurring procurements. We reviewed the IRS tax return folder contracts for 1981 and 1982. Our work was primarily done at the IRS headquarters located in Washington, D.C. We discussed the contracts with IRS program and procurement personnel familiar with the folder pro- curements. In addition, we also interviewed other Government personnel involved with similar acquisitions, file folder manufacturers, and a trade association representative for paper manufacturers. This review was performed in accordance with the principles outlined in the current Standards For Audits of Governmental Organizations, Programs, Activities, and Functions. IRS IS ACHIEVING LIMITED COMPETITION IRS's solicitation and resulting contracts for tax return folders contain specifications which limit the number of bidders on this procurement. (019008)

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