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B-160725 1 (1974-01-09)

handle is hein.gao/gaobabkxx0001 and id is 1 raw text is: RESTRCTED - ot to be released outide the General 7 Accounting wl tce exce t ohe basis of specific approvaD by the Office of Congr'ess lon I Relat'00s, a record ,,I wich Is kept by the Ditribution Section, Publications Branch, OAS; COMPTROLLER GENERAL OF THE UNITED STATES A g-C WASHINGTON D.C. 14@ u* c B-160725 RELEASED 4 The Honorable William L. Scott United States Senate 2yc )0 Dear Senator Scott: We have reviewed the suggestion received from Colonel Malcolm F. Kent, USAR (Retired) as requested in your letter of October 25, 1973. Colon aiKentug , _ - -cons is t i ng of a civilian inspector general task force and staffed by recently retired officers with prior inspector general serv- ice-l.gv~imm~ ees This force, after refresher training, would review individual transac- tions for improper procurement practices. When the Government did this from 1952 to 1954, it had excellent results. Since the 1950s many changes have been made in Government procurement. Legislation such as the Truth-in-Negotiations Act, Public Law 87-653, in effect since December 1962, has provided more effective procedures for increasing competition for negotiated contracts and for establishing reasonable prices for noncompetitive contracts. Government agencies have in- creasingly recognized their responsibilities to establish a system of procedures and controls to insure that (1) maximum competition is obtained, (2) prices are reasonable, and (3) contract performance is satisfactory. They have recognized the need for internal audit and review staffs to insure that prescribed policies and procedures are being followed. Agency 'rocuremej, o fjfe, ohae+ Thdeperdi nt gqr~vps-owhoich review each transactiono before award. Tipro pum nt ea sCubj et reviews by .'nmerous. oMisI, e.or- gAniza4. As. For example, in the Department of Defense, each service has a Procurement Management Review Group, internal audit organization, and an inspector general. The Defense Contract Audit Agency established in 1965 makes preaward re- views of price proposals for noncompetitive contracts and postaward reviews of selected contracts to identify procure- ments whose prices have been increased because contractors ~~9~9~E 0co9 C1

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