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DOCUMENT RESUME
04586 - [B0125028]
Federal Agencios Should Be Given General Multiyear Contracting
Autharity for Supplies and Services. PSAD-78-54; B-160725,
JanuLry 10, 1978. 20 pp. + 3 appendices (5 pp.).
Report to the Congress; by Elmer B. Staats, Comptroller General.
Issue Area: Federal Prcurement of Goods and Services (1900);
Feetral Procurement of Goods and Servicess Reasonableness of
Prices Under Negotiated Contracts and Subcontracts (1904),
Contact: Procurement and Systems Acquisition Div.
Budget Function: General Government: Other General Government
(806).
OrganiLation Concerned: Department of Defense; Ceneral Services
Administration; Department of the Air Force; Department of
Agriculture; Commission on Government Piocurement; Office of
Federal Procuremeat Policy.
Coagressional Relevance: Congress.
Authority: Federal Property and Administrative services k.t, as
amended (40 U.S.C. 481). Adequacy oi Appropriations Act (41
U.S.C. 11). Anti-Deficiency Act (31 U.S.C. 665). (P.L.
90-378; 10 U.S.C. 2306(g)). Small Business Act. 15 U.S.C.
631(a). 10 U.S.C. 712a. 20 Coup. Gen. 437. 33 Comp. Gen. 57.
33 Comp. Gen. 90. 42 Coup. Gen. 272. 43 Coup. Gen. 657. S.
2309 (94th Cong.). S. 3605 (94th Cong.). 1. 1264 (95th
ccng.). $S 1491 (95th Cong.).
Federal agencies operating under annual appropriations
generally are prohibited from entering into contracts for needs
occurring beyond the year for which the appropriation is made.
Nultiyear contracts entitle the Government to purchase services
or supplies frcm contractors for more than 1 year. The
Commission on Government Procurement has recommended that
Congress enact legislation to permit multiyear contracting of
supplies and services using annual or multiple-year
appropriations. Findings/Conclusions: Federal agencies with
either funding or statutory autnority for multiyear procurement
benefit from reduced contract prices and other advantages.
Arnual savings of $3 millio2 resulting from multiyear
[Locurement were ident.fied on 26 contracts having an annual
cost of $14 million. The benefits of multiyear procurement
include: contract prices may be reduced for agency service and
supply needs, Federxi agenciest administrative costs can be
reduced, the quality of performance and service could increasep
and competition could increase for the initial award of a
Government contract. Generally, the advantages of multiwear
procurement outve4.gh the disadvantages. Recommendations:
Congress should enact legislation authorizing multiyear
procurement for Federal agencies and provide for the Office of
Federal Procurement Policy to: develcp apprcpriate criteria for
use of the procurement method, require responsibla agency
officials to determine when the criteria are met, and provide](ViewImageLocal?handle=hein.gao/gaobaawmj0001&div=1&collection=&method=preview&ext=.png&size=3)