Efforts Needed to Increase Competition for Elevator Maintenance Services in the Veterans Administration

PSAD-78-41: Published: Nov 22, 1977. Publicly Released: Nov 22, 1977.

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A review of the methods the Veterans' Administration (VA) hospitals used to contract for elevator maintenance services indicated that some hospitals are not seeking competition for elevator maintenance services.

Two-thirds of the hospitals sampled solicited competition and awarded contracts for elevator maintenance services to the lowest bidder. The other hospitals awarded sole-source contracts to service representatives of the elevator manufacturers on the assumption that other sources could not provide adequate and timely service. The hospitals awarding noncompetitive contracts had not developed a factual basis to support the determination that it was impractical to secure competition. These hospitals also had no basis and had made little or no effort to evaluate the reasonableness of prices paid for maintenance services under noncompetitive contracts. There are opportunities for the VA to increase the number of competitive procurements, and significant savings should accrue through increased competition.

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