Federal Supply Service Multiple Award Program Contracting Procedures
PSAD-77-87: Published: Mar 11, 1977. Publicly Released: Mar 11, 1977.
- Full Report:
The Federal Supply Service (FSS) needs to improve its evaluations of contractors' proposal prices in the award of multiple award schedule contracts. There are doubts concerning the appropriateness of benchmarks established and whether FSS negotiates the best possible prices.
A review of eight multiple award schedules showed that the contractor with the best offer often was not chosen as the benchmark contractor, and there was not adequate support to justify any other selection. Procurement files for the eight schedules did not include a memorandum of price negotiations required by Federal Procurement Regulations, so that the criteria used in negotiating contracts could not be ascertained. Without a formal record of negotiations, there is no assurance that all significant factors were considered or that the negotiated prices were fair and reasonable.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: FSS should: (1) document the procurement files with the factors that were considered in evaluating the reasonableness of contractors' proposed prices, including selection of the benchmark contractor; (2) prepare a statement of justification when other than the contractor offering the best price discount is selected as benchmark contractor; and (3) prepare a record of negotiations. This documentation should be reviewed by supervisory personnel.