Survey of Service Contracts Awarded by Local Authorities

PSAD-78-10: Published: Jan 17, 1978. Publicly Released: Jan 17, 1978.

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A review of the methods used in awarding contracts for elevator maintenance and repair work at selected Public Housing Authorities (PHA's) in the Department of Housing and Urban Development (HUD) Region V indicated that the PHA's were not obtaining effective competition for maintenance and repair contracts.

Sixty-eight contracts, involving payments of $415,888 during 1976, had existed for periods ranging from 3 to 13 years. Four PHA's had negotiated 31 of these contracts with elevator manufacturers and continued these arrangements under options for an extended period. Generally, the PHA's could not locate appropriate HUD approval for either renewal options or contract periods beyond 2 years. Consolidation of elevator maintenance contracts results in reduced contract administration and lower costs. However, only 3 PHA's had combined overall requirements under blanket contracts. Savings resulting from competitive bidding for elevator maintenance contracts were reported by PHA's in Chicago and Indianapolis.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of Housing and Urban Development should: instruct field offices in Region V to take steps to insure the Public Housing Authorities obtain competition and consolidate requirements for elevator maintenance to the extent possible; insure that within Region V, approvals are obtained for either renewal options or use of contract periods beyond 2 years; and determine whether the problem found in Region V exists in other regions, and if it does, take appropriate corrective action.

    Agency Affected:

 

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