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GAO-02-343R 1 (2002-01-23)

handle is hein.gao/gaocrptaonp0001 and id is 1 raw text is: S=GAO Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 January 23, 2002 The Honorable Max Baucus United States Senate Re: Appropriateness of Indian Health Service's Request for Proposals Dear Senator Baucus: You requested that we review the appropriateness of a termination of a 1997 Indian Health Services request for proposals' to provide computed tomographic scanning (CT Scan) services for the Blackfeet and Crow Service Units in Montana. Specifically, you were concerned about the allegations that Indian Health Services negotiated in bad faith with a Native American, women-owned, small business. We could find no indication that IHS negotiated in bad faith. GAO's Office of Special Investigations had previously looked into the case in December 1998 (Control Number 40212). GAO determined that the case was not within the scope of ongoing work and referred the case to the Department of Health and Human Services, Office of Inspector General (HHS/OIG). In June 1999, the HHS/OIG issued a report concluding that the allegations were unwarranted. A copy of the HHS/OIG report is enclosed. Specifically, the HHS/OIG found that Indian Health Services committed $840,000 to acquire computed tomographic scanning services for the service units to avoid having to transport patients offsite to receive services at a cost of $850.00 per scan. However, Indian Health Services' requirements changed. The Blackfeet Service Unit was to undergo major remodeling within 2 years, and the Crow Service Unit did not have the space or construction funds to accommodate the proposed scanning services. Upon receiving this information, the contracting officer reassessed Indian Health Services' needs and cancelled the request for proposals. In a negotiated procurement, a contracting officer can cancel a request for proposals at any time if the contracting officer has established a reasonable basis for doing so. GAO-02-343R Indian Health Service ' RFP-244-97-00 18-JLB.

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