Federal Supply Service Multiple Award Program Contracting Procedures

PSAD-77-87: Published: Mar 11, 1977. Publicly Released: Mar 11, 1977.

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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.

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