Postal Procurement:

Eagle Air Hub Selection Not in Accordance With Solicitation

GGD-92-127: Published: Aug 12, 1992. Publicly Released: Sep 23, 1992.

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Pursuant to a congressional request, the GAO examined the U.S. Postal Service's (USPS) decision to locate the permanent hub for its air network in Indianapolis, focusing on whether: (1) solicitation evaluation criteria were valid and credible; (2) USPS based the award decision on the written criteria; (3) USPS was appropriately resolved a related bid protest; (4) USPS obtained adequate competition; and (5) any undue political influence affected the award.

GAO found that: (1) the evaluation criteria were valid and credible, and no offeror objected to them; (2) USPS selected Indianapolis based only on technical criteria, contrary to the solicitation's evaluation scheme, and the selection committee assigned improper scores for one technical award factor; (3) cost estimates USPS used to calculate net present values were inconsistent and erroneous; (4) USPS did not properly resolve the bid protest, which questioned the evaluation process, particularly the weight assigned to one award factor; (5) although USPS did not and was not required to advertise the solicitation for the hub facility, it obtained adequate competition by following a permissable alternative; and (6) it could not find any evidence that undue political influence affected the award.

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