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PSAD-79-60 1 (1979-03-28)

handle is hein.gao/gaobaaywd0001 and id is 1 raw text is: logIqo, UNrr STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 HUMAN REUUR OMWSON MARCH 28, 1979 B-164031 The Honorable Joseph A. Califano, Jr. '1im The Secretary of Health, Education, and Welfare 108901 Dear Mr. Secretary: We have completed a review of procedures and practices used by the Department of Health, Education, and Welfare (HEW) to obtain interoffice moving services. This review stemmed from a local moving and storage firm's complaint that these services are being obtained without competition, and that it is not permitted to compete for such work. We wanted to see if HEW is following prescribed laws, regulations, and procedures in obtaining these services. The review was made at HEW and General Services Ad- minstration (GSA) headquarters where we reviewed pertinent documents and talked to agency personnel involved in ar- ranging office moves. In summary, we found that HEW's procurement procedures used to obtain moving services do not comply with established regulations, because they do not make full use of available competition. As a result, HEW is paying too much for moving services. While our review revealed no fraudulent transac- tions, we noted that controls over components' (HEW offices) moving services are inadequate and provide opportunities for payment for fictitious moves and other fraudulent transactions. BACKGROUND Except for calendar year 1976, HEW has been obtaining its own interoffice moving services since 1972. These services involve the transfer of office furniture and equipment within and between EW locations in the Washing- /ton, D.C., metropolitan area. In calendar year 1976, HEW used GSA's assistance to award a contract. The GSA contract was an indefinite quantity type against which components PSAD-79-60 (950506) .... . .. . ...... . iV

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