Air Force Decision To Produce Liquid Oxygen In-House at Andersen Air Force Base, Guam

NSIAD-84-33: Published: Jan 17, 1984. Publicly Released: Jan 30, 1984.

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In response to a congressional request, GAO reviewed the question of whether the Air Force violated procurement policies in its decision to produce liquid oxygen in-house at an Air Force Base in Guam by not notifying a supplier of the results of the cost comparison in sufficient time for the company to appeal the results.

GAO found that the Air Force complied with the provisions of OMB Circular A-76 in performing its cost comparison and, even with some adjustments, the cost comparison showed that in-house production would be less costly. As required by Defense Acquisition Regulations, the Air Force announced the results of the cost comparison at bid opening and notified the supplier by telephone. Even though the supplier did not file an appeal, the Air Force considered the issues it raised and did not find them sufficiently significant to reverse its decision.

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