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PSAD-78-115 1 (1978-06-14)

handle is hein.gao/gaobaaxmt0001 and id is 1 raw text is: DOCUMENTL RESUO1E 06361 - [B1b667131 Increased Competition Can Reduce Elowator ?aintenance and Cleaning Service Contract Costs. PSAL-78-11'; E-135350. June 14, 1978. 20 pp. + 3 appendices (4 pp.). Report to the Congress; by Robert F. Keller, Acting Comptroller General. Issue Area: Federal Prccurement of Goods and Services (ISOC). Contact: Procurement and Systems Acquisiticn Div. Budget Function: General C.overnment: Cther General Goverr'ent k1806). Organization Concerned: General Service- Aiministration. Congressional Relevance: Congress. Authority: Federal Property and Administrative Services act of 1949. S. 1491 (95th Cong.). B-187624 11977). B-184186 (1976). B-187250 (1977). B-187354 (1S71). E-IE7256 (1977). E-187257 (1S77). The Gtneral Services Administration's (GSA's) Eublic Buildinqs Service manages federally, owned kuildings and commercial space leased for Federal agency use. GSA contracts with private firms for some maintenance and repair services. As or May 1977, GSA had 295 contracts worth $5.1 sillicn fcr elevator maintenance services and, as cf June 1577, had contracts worth $49 million for cleaning services in abcut 500 buildings. Federal statutes provide that Government purchases of goods and services be made by formal advertising whcnRv £ feasible and pcactical. findings/Couclusicns: Nearly 75% of GSA's elevator maintenance contracts ir effect during fiscal year 1977 were awarded noncompetitively to elevator eG.3inment manufacturers. GSA jus'tiid its actions tased on the determination that it was impractical to se-ure compocition by adve 'isinq and necessary to purchase these services frou the manui-.cturer in order #o ,z..t replacement parts on a timely basis and avoid service iitrruption.. Although GSA has made limited eftorts to obtain competition, Lt is ovailakle for elevator maintenance services. Most of GSA's cleaning service contrncts are advertised, fixed-price contracts. However, a. .f Juie 30, 1977, 13% of the Federal buildings were cianed unde. negotiated, cost-plus-award-fee conttacts. Cleaninc costs for the b4 buildings under cost-plus-award-fee contracts were ibo'it $5 million higher than the costs would have been under advertised contracts. Recommendations: The Administratcz of General Services should direct the Commissioner of the Public Buildings Service to: require regions to obtain competition for elevator maintenance services; monitor future contract awa::ds for elevator maintenance services to ass:ire that maximum competition is obtained; revise and :L pliment guidelines to encourage u-e of advertised, fixed-price -cnt.acts in large Federal office buildings in lieu of :.ic cc~t-lus-award-fee contract; and implement guidelines and ccntract clauzes to

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