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RCED-84-115 1 (1984-09-07)

handle is hein.gao/gaobabnlu0001 and id is 1 raw text is: Ny UNITED STATES GENERAL ACCOUNTING OFFICE % WASHINGTON, D.C. 20648 RESOURCES, COMMUNITY, SEPTEMBER 7, 1984 AND ECONOMIC DEVELOPMENT DIVISION B-21 5872 The Honorable William V. Roth, Jr. Chairman, Committee on Governmental Affairs United States Senate 125082 The Honorable Christopher J. Dodd United States Senate Subject: Information on the Purchase of a Gas Generator Engine for a U.S. Coast Guard Cutter (GAO/RCED-84-115) This is in further response to your letters of April 4 and 18, 1984, concerning the Coast Guard's procurement of a rebuilt gas generator engine. In our May 30, 1984, letter to you we stated that our audit staff would review the procurement action and report to you on the results of that review. This report responds to that matter. In January 1983, the contractor, Energy Maintenance Corporation (EMC), delivered a rebuilt gas generator engine to the Coast Guard's District Office in Seattle, Washington for use in the Cutter Boutwell at a cost of $388,000. Although EMC's offer was considere -responsive, the Coast Guard subsequently decided the engine was unusable because it contained disks1 which had been previously used in aircraft engines. The agency made this decision because the original engine manufacturer strongly recommended that disks previously used in aircraft engines not be used in marine engines because the disks could fail and cause an explosion or fire resulting in serious damage to the ship and injury to its crew. According to the Coast Guard's General Counsel, the agency had no recourse with EMC because the purchase specifications did not prohibit the use of disks previously operated in aircraft engines. Coast Guard officials told us that organizational changes in its procurement process resulted in the issuance of inadequate specificiations to purchase the engine. These offi- cials told us that the agency has subsequently developed standard specifications to repair its gas generator engines rather than purchase rebuilt ones. These specifications preclude the use of disks previously used in aircraft engines, and according to the IHigh-speed rotating elements within the engine to which are attached air compressor blades. (344404)

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