Disposal of Equipment Financed Indirectly Through Medicare and Medicaid Funds

B-192037: Jun 14, 1978

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GAO was asked about the disposal by Massachusetts Blue Cross-Blue Shield organizations of computer equipment without general competitive bidding. The equipment was financed indirectly through Medicare and Medicaid funds. GAO stated that the equipment was acquired by contractors using their own funds, without any Government-imposed requirements concerning the disposal of the equipment. Absent specific contractual provisions imposing certain disposal requirements, organizations are not required to solicit bids when disposing of equipment used in the performance of Government contracts.