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B-177054 1 (1973-01-15)

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                 RESTRICTED - Not to be released outside the General      i
                 Accounting Office except on the basis of specific approval ..
4                by the Office of Congressional Relations, a record of which 7'/ 7 /
      ~otLE~ c~  is kept by the Distribution Section, Publications Branch, OAS  -
                         COMPTROLLER GENERAL OF THE UNITED STATES
                RELEASED          WASHINGTON D.C. 20548


                                                          JAN 15 1973
        B-177054


        Dear Senator Proxmire:

             On September 18, 1972, you asked us to look into a com-
        plaint about the -award- of a ctn                                i.by.tole-N at-i,.oal Jiighway
        r',on,, (Department of Transportation,
        to the Washington Hilton Hotel for services performed from
        May 29 through June 1, 1972, for the Third internation-a l Tech-
        nial Confr     Q,,on,,Expeimntal.SafphteVehicles. It was al-
        lege-dthat (1) there was nD_ t_ =tipnt ..$. .lg the  prime
        co    ctor, the Washington Hilton, (2) the Department had ob-
        tained all the management and support services for the confer-
        ence through the Washington Hilton rather than through direct
        contracts for these services, and (3) the procurement was un-
        necessarily costly because there was no competition in the
        selection of the subcontractor and second-tier subcontractors
        who provided the management and support services.

             We reviewed the records concerning the procurement and
        discussed the matter with Traffic Safety Administration offi-
        cials. To a great extent, the decisions and negotiations in
        this case were carried out orally and, therefore, were not
        documented.

        COMPETITION IN SELECTION OF
        WASHINGTON HILTON HOTEL

             Selection of a facility to support the international con-
        ference was based on the following anticipated requirements:
             1. Capability to handle formal luncheons for approximately
                500 people.

             2. Adequate sleeping rooms for participants.

             3. Proximity to another hotel handling other conferences
                and the International Banquet.

             4. Facility acceptable to Ministers of Transportation of
                foreign governments and presidents of foreign automo-
                tive companies.

             5. Capability to handle approximately 700 people, set up
                in classroom style with adequate audiovisual and trans-
                lation support.

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