Comments on Bill To Reform Contracting Procedures and Contract Supervisory Practices of the Federal Government

A report by GAO detailed the following problems in the General Services Administration (GSA) $2 billion multiple award schedule program: (1) unrestricted growth of the multiple award schedule program to the point where the size of the program hampers effective management; (2) lack of assurance that the best price was being obtained during contract negotiation; (3) federal agencies not buying the lowest cost items to meet their needs and buying on the open market; and (4) failure of GSA to maximize the use of competition by developing commercial item descriptions which would serve as the basis for obtaining bids. The 1971 GSA internal auditors' report stated that substantial savings could be realized if GSA competed multiple award items; however, the recommendations of the study were never adopted. The multiple award schedule is big, and has been subject to mismanagement. The proposed legislation is not clear as to the specific information requiring certification with respect to procurements. The proposed bill would require contractors to submit certified information with respect to advertised procurements, but this would be a change in the government's procurement philosophy. The proposed legislation would delete the remedies available to the government in the area of financial penalties for any person engaging in fraudulent means of securing payment during the procurement, transfer, or disposition of property. The bill provides that agencies establish a system of reporting purchases made through various GSA programs, but this provision would place a severe administrative requirement upon the agencies. GSA could better obtain knowledge of agency procurement practices through reports submitted by contractors for sales under the multiple award program. These reports could be made more meaningful for management purposes if information were requested on sales by item and model number as well as the name of the procuring office. There should be reasonable regulations requiring documentation of key procurement events.