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PSAD-77-87 1 (1977-03-11)

handle is hein.gao/gaobaacaz0001 and id is 1 raw text is: DOCUNINT iSSUE 01129 - EA10516701 Federal Supply Serv .ce ultiple &ward Program Contracting Procedures. PS&D-77-87; B-114807. march 11, 1977. 5 pp. Report to Robert T. Griffin, Acting Administratot, General Services Administration; by Richard g. Gutmanun, Director, Procurement and Systems Acquisition Div. Issue Irea: Federal Procuremant of Goods and Services (1900); Federal Procurement of Goods and Services: Reasonableness of Prices Under Negotiated Contracts and Subcontracts (190). Contact: Procurement and 3ystems acqaisition Div. Budget Function: General Government: General Property and Records management (0). Organization Concerned: Padral Supply Service. The Federal Supply Service needs to improve its evaluations ot contractorss proposal prices in the award of multiple award schedule contracts. There are doubts concerning the appropriateness of benchmarks established and whether the Service negotiates the best possible prices. Findings/Conclusions: A review of eight ult..ple award schedules showed that the contractor with the best offer often was not chosen as the benchmark contractor, and there was not adequate support to justify any other selection. Procrement files for the eight schedules did not include a memorandum of price negotiations reqaired by Federal Procurement Regulations, so that the criteria une in negotiating contracts could not be ascertained. Vithout a formal record of negotiations, there is no assurance that all significant factors were considered or that the negotiated prices were fair and reasonable. Beaounendations: The Federal Supply Service should: (1) docunent the procurement files with the factors that were considered in evaluating the reasonableness of contractors# proposed prices including selection of the benchmark contractor; (2) prepare a statement of justification when other than the contractor offering the best price discount is selected as benchmark contractor; and (3) prepare a record of negotiations. This documentation should be reviewed by zuperviscr7 personnel. (RaS)

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