B-139632, AUG. 28, 1959

B-139632, AUG. 28, 1959

TO HONORABLE FRANKLIN FLOETE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER DATED MAY 29, 1959, WITH ENCLOSURE, REQUESTING OUR REVIEW AND CONCURRENCE OF A PROPOSED REGULATION PRESCRIBING POLICIES AND PROCEDURES GOVERNING EXECUTIVE AGENCIES USE OF PRIVATE ORGANIZATIONS IN DISCHARGING THEIR RESPONSIBILITY TO INSPECT OR ARRANGE FOR THE INSPECTION OF PURCHASED SUPPLIES AND SERVICES.

WE HAVE REVIEWED THE PROPOSED REGULATION IN THE LIGHT OF OUR DECISIONS CONCERNING THE RENDITION OF INSPECTION, TESTING, ETC., SERVICES BY PRIVATE ORGANIZATIONS, AND WE HAVE THE FOLLOWING COMMENTS TO OFFER.

WE BELIEVE THAT CONSIDERATION SHOULD BE GIVEN TO INCLUDING IN SUBSECTION 406.01 GENERAL, A RESTATEMENT OF POLICY AS TO THE TYPE AND EXTENT OF INSPECTION TO BE PERFORMED. WHILE SUCH A STATEMENT IS COVERED GENERALLY IN SUBSECTION 403.03 OF THE PROPOSED REGULATIONS, IT MIGHT BE DESIRABLE TO INCLUDE A STATEMENT WHICH WOULD EMPHASIZE THE CONSIDERATIONS WHICH GOVERN THE TYPE AND EXTENT OF INSPECTION TO BE PERFORMED. WE SUGGEST THAT THE FOLLOWING OR SIMILAR LANGUAGE BE INSERTED AFTER THE FIRST SENTENCE IN SUBSECTION 406.01:

"THE TYPE AND EXTENT OF INSPECTION WHICH SHALL BE PERFORMED ARE DEPENDENT ON THE PARTICULAR NEEDS OF THE PROCUREMENT. FOR EXAMPLE, ON ITEMS WHICH WOULD INVOLVE SMALL LOSSES IN THE EVENT OF DEFECTS AND WHICH WOULD PROBABLY BE REPLACED BY SUPPLIERS WITHOUT CONTEST, INSPECTION MAY CONSIST ONLY OF CHECKS FOR IDENTITY, QUANTITY, AND SHIPPING DAMAGES AND SHOULD BE PERFORMED BY AGENCY PERSONNEL.'

IN PARAGRAPH (A) OF SUBSECTION 406.02, WE SUGGEST THAT CONSIDERATION BE GIVEN TO DELETING THE WORD "CONVENIENTLY" AND ADDING "EFFECTIVELY, EFFICIENTLY.' WE BELIEVE THE REQUIREMENT OF CONVENIENCE MIGHT BE SUBJECT TO ABUSE AND THAT THE LANGUAGE CHANGE SUGGESTED WOULD PRECLUDE THIS POSSIBILITY.

IN THE SECOND LINE OF PARAGRAPH (C) OF SUBSECTION 406.04 ON PAGE 2 OF THE PROPOSED REGULATION, WE SUGGEST THAT CONSIDERATION BE GIVEN TO CHANGING THE WORDS "AN AGENCY HOWEVER MAY SPECIFY" TO READ "ANY AGENCY SHOULD SPECIFY.' WE BELIEVE THAT THIS WOULD PROVIDE A MORE POSITIVE GUIDELINE.

WE SUGGEST ALSO THAT THE WORDING OF THE SECOND SENTENCE OF SUBSECTION 406.06 WHICH PROVIDES ,INFORMATION DEVELOPED AND REPORTS ISSUED BY THE ORGANIZATION MAY AND SHOULD BE GIVEN PROPER CONSIDERATION BY THE GOVERNMENT EMPLOYEE RESPONSIBLE FOR DETERMINING ACCEPTABILITY OF THE MATERIALS OR SERVICES" BE CHANGED TO READ AS FOLLOWS:

"* * * INFORMATION DEVELOPED AND REPORTS ISSUED BY THE ORGANIZATION MUST BE EVALUATED AND CONSIDERED BY THE GOVERNMENT OFFICER OR EMPLOYEE RESPONSIBLE FOR DETERMINING ACCEPTABILITY OF THE MATERIALS OR SERVICES.'

THIS WOULD MAKE THE REGULATION MORE POSITIVE AS TO THE USE TO BE MADE OF THE INFORMATION DEVELOPED AND REPORTS ISSUED BY A PRIVATE ORGANIZATION.

WE HAVE NO OBJECTION TO THE PROMULGATION OF THE PROPOSED REGULATION WITH THE UNDERSTANDING THAT WE RESERVE THE RIGHT TO QUESTION THE CORRECTNESS OF ADMINISTRATIVE ACTIONS WHICH MAY BE TAKEN UNDER THE REGULATION IF ISSUED.