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You are here: Home / Government Contracting News / USPS didn’t justify $210M in noncompetitive purchases, IG says

September 30, 2013 By AMK

USPS didn’t justify $210M in noncompetitive purchases, IG says

The Postal Service likely didn’t justify $210 million in noncompetitive  purchases made over two fiscal years, which puts USPS at risk for not obtaining  the best price when awarding contracts, a Sept. 25 USPS inspector general report  says.

Contracting officials at the USPS did not document a finding of price or cost  reasonableness or write up a necessary justification in 21 of 56  statistically-sampled noncompetitive contract awards worth $37 million that the  inspector general audited.  Based  on those findings, auditors project that at least $210 million worth of Postal  Service purchases in fiscals 2011 and 2012 likewise lacked documentation to show  that the noncompetitive award was necessary and not unnecessarily expensive. The  mail deliverer spent $1.3 billion on contracts those two fiscal years.

Agencies must conduct a price or cost analysis to support that noncompetitive  contract prices were fair and reasonable.  And there must be documentation that  that process took place.

Keep reading this article at: http://www.fiercegovernment.com/story/usps-didnt-justify-nearly-40-million-noncompetitive-purchases-ig-says/2013-09-26

 

Filed Under: Government Contracting News Tagged With: acquisition workforce, cost analysis, cost and price, fair and reasonable price, noncompetitive, price analysis, price reasonableness, USPS

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