Use of Advertised and Negotiated Contracts for Construction and Major Repair and Alterations

LCD-78-323: Published: Jul 6, 1978. Publicly Released: Jul 6, 1978.

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A statistical analysis of the General Services Administration's use of advertised and negotiated contracts for new construction and major repairs and alterations indicated that restricted competition may preclude assurance that awards are made at reasonable prices. There appears to be too high a proportion of negotiated contracts, overly liberal interpretations of public exigency to justify negotiation, and little or no competition for many advertised and negotiated awards. Although conclusive determinations could not be made of procurement methods in individual cases, indicators of serious inadequacies are being reported to the Administrator of General Services. Suggestions are being made that his recently formed task force on activities most susceptible to criminal abuse consider information supplied by GAO and that they investigate specifically the sufficiency of competition in the Public Building Service's construction, repair, and alteration contract work.

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