Natural Gas: Opportunities for Federal Cost Savings Through Competitive Purchases
RCED-91-35
Published: Oct 23, 1990. Publicly Released: Oct 23, 1990.
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Highlights
GAO reviewed natural gas purchases by an Air Force base and two veterans medical centers to determine: (1) the extent to which the agencies used competitive procurement practices; (2) actual and potential cost savings from competitive procurement; and (3) why more agencies did not use competitive procurement practices.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| General Services Administration | The Administrator of General Services, as a principal negotiator for federal utility and supply contracts, should institute a program to work with federal civilian agencies in conducting procurement cost comparisons for all large federal civilian agency users of natural gas. |
GSA identified candidates for competitive procurements of natural gas. Analyses were completed on May 15, 1991.
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| General Services Administration | On the basis of comparative analysis, GSA should recommend a gas-purchasing strategy to agency users, actively assist in its achievement, and maintain data showing results of the analysis. |
GSA has analyzed data on federal civilian agencies facilities' natural gas usage. GSA has recommended a gas-purchasing strategy to agency users and assisted them in procuring natural gas competitively.
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| General Services Administration | GSA should consult and work with DOD officials to take advantage of their regional analysis, as well as their centralized solicitation and contract award procedures. |
GSA has obtained an oral agreement to include civilian agency facilities in Defense Fuel Supply Center's centralized and contract award procedures, which has thus far resulted in estimated annual financial savings for several facilities included. GSA is updating this information. GSA also has amended its regulations concerning natural gas procurement.
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| General Services Administration | The Administrator of General Services should monitor GSA initiatives to assess the potential for competitive natural gas procurement in the federal civilian agency sector to ensure that opportunities to reduce federal natural gas expenditures are fully realized. |
On June 28, 1991 and February 21, 1992, GSA summarized the action taken in response to GAO recommendations. These letters discussed the status of GSA initiatives to assess the potential of federal civilian agencies to procure natural gas competitively. The Administrator plans to continue monitoring these initiatives on a periodic basis.
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Topics
Air Force procurementCompetitive procurementCost controlDefense cost controlFederal procurementNatural gasNatural gas pricesProcurement practicesVeterans hospitalsAir Force purchasing