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B-176575 1 (1973-01-04)

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          .RETRnCTLD - Not to be relesed outide the Genera 3
          Accountng Office except on the basis of specific approval
OULER 0   by the  Office  of Congresso na  elatf ins a record  Of Which
               is NT                          keh, OAS
                             RELEASED              7           /


   B-176575                                   JA '~Idj

   Dear Mr. Chairman:                                  N

        Your letter dated November 2, 1972, requested that we
   verify w ether h            rocuremen   e   ations prohibit
   .jw ardig contrts for services of the type in, whichvalue
   eg                     fgrm st_,q  lzier'Afrding to your
   letter, a local value engineering consultant had advised you
   that this was prohibited and you understood that the General
   Services Administration (GSA) had recently declined a con-   /
   tract for this reason. Your letter further requested that,
   if this prohibition in the regulations does exist, we recom-
   mend corrective measures that appear desirable.

        We could find nothing in the regulations prohibiting the
   award of contracts to firms specializing in value engineering
   consultant services. An agency acquires such services through
   its normal procurement process, just as it acquires other pro-
   fessional services.

        We discussed with GSA officials their agency's position
   on procuring value engineering consultant services. In a
   written response to our inquiry, the Acting Assistant General
   Counsel, Public Buildings Division, GSA, said that GSA does
   not regard the regulations as prohibiting award of contracts
   for value engineering services. The response noted that GSA
   had contracted for value engineering services in the past,
   pursuant to the procedural requirements of the regulations,
   and plans to acquire such services in the future.

        Following is an example of GSA's procedure in contract-
   ing with firms specializing in value engineering consultant
   services. On October 5, 1971, the Public Buildings Service,
   GSA, invited 62 firms to submit proposals for developing a
   program to train GSA regional personnel in applying value en-
   gineering to the planning, design, construction, operation,
   and maintenance of Federal buildings. GSA files show that it
   received 14 proposals before the bid opening date, all of
   which it considered responsive. A panel evaluated the pro-
   posals for technical competence on the basis of specific cri-
   teria. After the panel had ranked the proposals according to

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