Multiple Award Schedule Contracting: Changes Needed in Negotiation Objectives and Data Requirements: GGD-93-123
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Pursuant to a congressional request, GAO reviewed the efficiency and effectiveness of the General Services Administration's (GSA) multiple award schedule (MAS) program, focusing on: (1) whether multiple award schedule prices are reasonable; (2) the purpose of GSA negotiations; and (3) the type of data that should be required so that GSA can judge whether prices are reasonable.
GAO found that: (1) MAS prices for top-selling items are often higher than prices offered to the general public or to some state governments; (2) higher MAS prices result from differences in contract terms and conditions and MAS dealers paying manufacturers more than non-MAS dealers for the same products; (3) the GSA procurement policy concerning best price negotiations is ambiguous; (4) GSA often uses customer discounts as the basis for its price analysis and to establish its negotiation objective; (5) although GSA needs to consider the discounts manufacturers give to all types of customers, it must take into account the differences in terms and conditions between the MAS program and other customers; (6) GSA needs to require MAS offerers to submit additional information to determine the reasonableness of their prices; and (7) MAS data requirements should be clear and consistent with GSA negotiation objectives.
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