April 30 2004 Copyright 2004 Business Research Services Inc. 202-364-6473 All rights reserved.
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Contracting Problems Found at GSA's National Capital Region From start to finish of the contracting process, shoddy work and rules violations are commonplace at the National Capital Region office of GSA’s Federal Technology Service, according to a consultant’s report. At the front end, consultant Acquisition Solutions Inc. found that in the majority of contracts studied, contracting officers compiled no independent cost estimate before soliciting bids. “While it is acknowledged that [independent estimates] are not mandatory, we believe they are universally considered an inherent part of price reasonableness determinations,” the reviewers said. Eighty-three percent of the contract files contained no evidence of market research. At the back end, three-fourths of the contracts studied exceeded the authorized amount, dozens of them by 500% or more. In such cases the work should have been re-competed. Donald Williams, director of the National Capital Region, commissioned the study after GSA’s inspector general found improprieties in other regional offices of the Federal Technology Service. (SAA, 10/17/03) Acquisition Solutions reviewed 260 contracts worth more than $600 million. Its report was released by GSA. In summary, the reviewers rated 84% of the contract files as “inadequate” or “seriously inadequate.” They found that two-thirds of the competitive procurements attracted only one proposal. In most of those cases, contractors were given 10 days or less to respond. “Competition is the bedrock of acquisition,” the report says. Reviewers also found contracting officers frequently did not provide the required justifications before awarding sole source or time and materials contracts. Acquisition Solutions noted that FTS has already moved to tighten controls by requiring additional review of larger contracts and restructuring its Office of IT Solutions.
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