Federal agencies spent about $26 billion in purchases through the Federal Supply Schedules in fiscal 2014 but could be pushing for a better deal than they often are accepting, according to a GAO report.
It said that in only 40 percent of obligations did agencies receive three or more quotes–a number frequently cited in the Federal Acquisition Regulation as an indicator of the true market price. In some cases that’s due to highly specific needs that only one or two vendors can fulfill, it said, but agencies “are paying insufficient attention to prices when using FSS.”
“Ordering agencies did not consistently seek discounts from schedule prices, even when required by the FAR. In addition, GAO found cases in which officials did not assess prices for certain items, as required, or had insufficient information to assess prices. Contracting officials were not always aware of the requirement to seek discounts and told GAO that the need to assess prices was not emphasized in training and guidance. When contracting officials are not aware of these regulations, agencies may be missing opportunities for cost savings,” it said.
GAO added that agency purchasing through the FSS declined from nearly $32 billion in 2010, reflecting the general decline in federal contracting obligations in that period.
