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089454 1 (1970-01-29)

handle is hein.gao/gaobacvll0001 and id is 1 raw text is: _4 t UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 CIVIL DIVISION LM089454 Dear Mr. Spangler: The General Accounting Office has reviewed selected aspects of the procurement of office furniture by the Federal Supply Service (FSS). Our work mainly covered (1) an examination of 28 office furniture procurement contracts totaling about $37 million, of which $21 million represented competitive awards and $16 million repre- sented noncompetitive awards; (2) a review of FSS records, reports, and files; (3) a review of the applicable Federal Procurement Regu- lations (FPR); and (4) interviews with FSS officials, office furni- ture manufacturers, and procurement officials of State governments. As part of our review, we communicated with about 90 manufac- turers and suppliers of metal office furniture in order to appraise competitive conditions in the induscry. We found that many manu- facturers, whose standard product lines do not reflect Federal specifications, are not interested in producing special order furniture that would meet Federal specifications. Competition, there- fore, is often limited and, at times, sole-source negotiations are the result. Our review disclosed that a need exists for FSS to employ the cost information provisions of the FPR when office furniture pro- curements are negotiated. Our review also disclosed that FSS has negotiated substantial amendments to its office furniture contracts without supporting these negotiations with determinations and find- ings statements as required by the FPR. COST-BASED NEGOTIATING TECHNIQUES In view of the limited competition for the Federal Government's office furniture needs, we believe it becomes increasingly important that FSS use sound cost-based negotiating techniques as prescribed Cilc7ko4q

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