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.

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