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B-197868(2) 1 (1980-11-21)

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          COMPTROLLER GENERAL OF THE UNITED STATES
                   WASHINGTON, D.C. 20548



B-197868(2)                           November 21, 1980



The Honorable Jesse Helms

United States Senate

Dear Senator Helms:

     By letter of A ust 11, 1980, you requested
that we review the issuance of a sole-source pur-
chase order and g sole-source contract by the Council
on Environmental Quality7(CEQ) to Mr. David Sheridan
in connection with a study of Desertification of
the United States. The purchase order, for $9,950,
was for a preliminary report identifying the salient
issues relating to desertification; the contract,
for $15,000, was for a report suitable for publication
on desertification.

     On July 30, 1980, our Office responded to your prior
inquiry regarding CEQ's procurement of Mr. Sheridan's
services in connection with a study on Off-Road
Vehicles on Public Land. We indicated that CEQ had
not provided an adequate sole-source justification for
that procurement and concluded that CEQ should have
obtained its needs through the use of competitive
negotiation procedures. Based on our review of CEQ's
report on the desertification study (copy enclosed)
we reach the same conclusion here.

     As we indicated in our prior response, the Environ-
mental Quality Improvement Act of 1970, 42 U.S.C. §
4372(e)(1976), authorizes the Director of the Office
of Environmental Quality to contract * * * with indi-
viduals without regard to section 529 of title 31 and
section 5 of title 41 in carrying out this function.
While this authority permits CEQ to procure property
or services by negotiation, it does not itself also
confer authority on the agency to procure its require-
ments on a sole-source basis. Federal Judicial Center,
58 Comp. Gen. 350 (1979), 79-1 CPD 206.

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