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B-180063 1 (1974-03-20)

handle is hein.gao/gaobabkxz0001 and id is 1 raw text is: R2EsTnocTEo - miot to he neamsed outside the Genieral o 24< Accounting Gfffe except~ on t _ h Of sPOCific 3Pr0a LUR by tale Office of Gogrsf ana Reago a record~ ol which is kept by UNITED&& %%in uliainraiich, OAS o ~ ~~~~ ~~ s ,pby ror.RGNRAL OF THE UNITED STATES WASHINGTON, D.C. 20548 B-8063RELEASED B-180063 RMAR 2 0 1974 The Honorable William A. Steiger House of Representatives Dear Mr. Steiger: In accordance with your request of November 14, 1973, GAO has'examined selected Federal contracts with the che mical iijsty to find out whether unethical ,rocupractices exist. You informed us that the Wisconsin Department of Justice had found a number of unethical practices in the sale of chemical products to municipalities. At 11 Federal installations in Wisconsin, North Dakota, and Minnesota, we examined procurement records, including brochures, catalogs, and vendors' sales literature, and in- quired into salesmen's offers to Federal purchasing agents. We identified 28 instances when premiums were offered with purchases. Of the 28 offers, 9 originated from chemical suppliers. For example, a digital electric clock was offered with a purchase of $500 or more. The premiums usually had esti- mated values of less than $25. We identified only one in- stance when agency officials had accepted a gift. Two elec- tric carpet shampooers having a total estimated value of $80 were accepted at a military base with the purchase of 30 cases of carpet shampoo. Base officials donated the shampooers to the family services unit for loan to occupants of military housing units. We also examined contracts awarded by the General Serv- ices Administration for selected chemical products placed on the Federal Supply Schedule. We found no evidence of offers of premiums by prospective or successful chemical suppliers to Federal procurement officials. We discussed with a member of your staff the results of our examination and the difficulties in proving that premiums offered had been accepted. He agreed that a more extensive examination would not be warranted. 0

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