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B-175702 1 (1972-08-08)

handle is hein.gao/gaobablcr0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNIT 0 WASHINGTON, D.C. £0548 R.STRICTED - Not to be released outside the General // Accounting aflice except on the basis oi specific approval by the Office of Co=tgressional Rekitaons, a record of which B -17 5 702 is kept by the Distribution Section, Publications Branch, R 8 1972 C' , Dear Senator Javits: RELEASED This is our report in response to your request of March 27, 1972, that the General Accounting Office consider Eye Gate House's complaint that the General Services Adminis- tration (GSA) insists on discounts from commercial catalog prices as aprerequisite for the award of a Federal Supply Schedule contract for training aidsnd devices. In letters to GSA on February 28, 1972, and to you on March 14, 1972, Eye Gate House stated that the award should not be based on whether its products could be purchased at discounts but on whether the products were best or peculiarly suited for ordering agencies' needs. Eye Gate House (1) took exception to GSA's position that the Government should get discounts because suppliers benefit from schedule contracts through reduced contracting effort and a potentially larger sales volume and (2) stated that the schedule contract method of procurement restricted agency access to its unique products. We interviewed GSA officials, reviewed applicable Federal procurement regulations, and examined selected schedule con- tract files. We also held discussions with officials of Eye Gate House and the Bureau of Indian Affairs, Department of the Interior. In discharging its responsibility for the economical pro- curement of commercially available products for Federal agen- cies, GSA establishes schedule contracts with suppliers of es- sentially similar items so that the agencies can order the products which best fulfill their particular requirements. In negotiating the contracts, GSA obtains the most favorable terms--discount and other concessions--available from one of the suppliers and then seeks comparable concessions from the other suppliers. Our examination of GSA's practice of obtaining comparable discounts indicates that it is a practicable technique for es- tablishing prices with a large number of suppliers furnishing similar commercial products and that it is not detrimental to oft- l r

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