About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

PSAD-76-51 1 (1975-12-29)

handle is hein.gao/gaobabkvp0001 and id is 1 raw text is: I.CT0 nt t ber~lonsed outside the Genuid ~Lountv~g Ce e'xceX#, Aa basis of specifc appwmd by the Office of Coircs ftona Relationsw COMPTROLLER GENERAL OF THE UNITED STATES no ' WASHINGTON, D.C. 20548 B-178205 ,f-' DEC 29 1975 RELEASED The Honorable William Proxmire 0q0221 Chairman, Subcommittee on Priorities and Economy in Government Joint Economic Committee Dear Mr. Chairman: This is in reply to your request dated January 27, 1975, for a full investigation of the procurement of foreign and domestic petroleum products by the Department of Defense over the last several years. Our review was made primarily at the Defense Supply Agency and the Defense Fuel Supply Center, Cameron Station, Virginia. These activities are responsible for the procure- ment of bulk petroleum for the military services. We exam- ined contract files, reports, and other agency records; procurement policies and procedures; and data submitted by contractors. We also discussed pertinent matters with knowl- edgeable officials. Your primary concern seemed to address the question of whether procedures followed by the Agency and the Center as- sured the procurement of needed petroleum products at reason- able prices. We concluded that although the Center had made a genuine effort to procure petroleum products at the best available prices, the procedures followed in many instances had not given the Center adequate assurance that the prices paid were fair and reasonable. Until early 1973 the Center procured domestic petroleum needs through formal advertising--the preferred method of procurement. It is assumed that formally advertised pro- curements will cause the greatest degree of competition and the lowest price available in the market place. However, procedures followed by the Center, which allowed the sup- pliers to bid on a part of the total quantity required and by lots of various sizes at succeedingly higher prices, might have limited the effectiveness of competition in pro- viding reasonable bid prices. Because bids received in response to invitations is- sued in early 1973 did not elicit offers to provide enough fuel to satisfy requirements, the Center was forced to nego- tiate contracts with suppliers. Market price data reported PSAD-76-51

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most