Potential for Savings and Improvements Needed in DOE Contracting for Moving and Storage Services

The Department of Energy's (DOE) use of contracts for office moving and storage services in the Washington, D.C., area was reviewed as part of a Government-wide review of contracting for these services to determine if pertinent regulations and procedures were being followed, reasonable prices were being paid, and adequate internal controls existed. Federal property management regulations provide that the General Services Administration (GSA) will award term moving contracts for use by Government agencies for moves estimated to cost $5,000 or less. The term moving contract permits agencies without definite moving requirements to obtain services on an as needed basis. At DOE's request GSA competitively awarded a term moving contract to meet the agency's normal daily moving service requirements in the Washington, D.C., area. This contract was an indefinite quantity-type contract for a period of 1 year, and the actual labor hours used were to be paid at the rates specified in the contract. At the time of the award, the estimated costs to be incurred over the life of the contract were $600,000. The contract was intended to cover small cost moves only, and the total value of any single order placed under this contract was not to exceed $5,000. For each move estimated to exceed $5,000, DOE was required to either competitively award a contract to meet its specific needs or to request GSA to award such a contract on its behalf.