NCJ Number
67389
Journal
Business Week Issue: 2554 Dated: (OCTOBER 2, 1978) Pages: 78,82,86
Date Published
1978
Length
3 pages
Annotation
THIS MAGAZINE ARTICLE DISCUSSES THE BENEFITS THAT WILL EMERGE FROM THE GENERAL SERVICES ADMINISTRATION'S (GSAS) FRAUD AND PAYOFF SCANDAL.
Abstract
CONGRESS IS ATTEMPTING TO REWRITE LAWS GOVERNING ALL FEDERAL BUYING OPERATIONS WITH THE PROPOSED FEDERAL ACQUISITION ACT WHICH WILL MAKE THE PROCESS SIMPLER, MORE FLEXIBLE, MORE COMPETITIVE, AND HOPEFULLY EASIER FOR POLICE TO CONTROL. GSA'S FRAUDULENT PRACTICES INCLUDE CHARGING THE GOVERNMENT FOR WORK NOT DONE, STEALING BY GOVERNMENT EMPLOYEES FROM SELFSERVICE STORES, USING CREDIT CARDS FOR BOGUS PURPOSES, AND INCOMPETENT PURCHASING BY GSA MANAGEMENT. THE INVESTIGATIVE TEAM CONSISTS OF THE FBI, GSA, THE SECURITY AND EXCHANGE COMMISSION, THE INTERNAL REVENUE SERVICE, AND THE POSTAL SERVICE. AS A RESULT OF THE INVESTIGATION, GSA HAS RESCINDED CONTRACTS WITH TWO COMPANIES WHOSE PRODUCTS EITHER DID NOT MEET QUALITY STANDARDS OR WHOSE PRICES WERE TOO HIGH. SENATOR LAWTON CHILES, AUTHOR OF THE PROPOSED ACT, FEELS THAT HIS BILL WILL LESSEN THE COLLUSION AND FAVORITISM WITHIN THE GSA BY GIVING ALL QUALIFIED COMPANIES GREATER OPPORTUNITY TO COMPETE FOR CONTRACTS. THE BILL WOULD ALSO MAKE GREATER USE OF FUNCTIONAL SPECIFICATIONS WHICH ARE FAR EASIER TO COMPLY WITH THAN THE MORE DETAILED DESIGN SPECIFICATIONS. FINALLY, THE BILL WOULD LESSEN THE GOVERNMENT'S MANAGEMENT SURVEILLANCE OF CONTRACTORS. HOWEVER, THIS LEGISLATION DOES NOT COPE WITH THE PATRONAGE PROBLEM WITHIN GSA WHERE EMPLOYEES OFTEN OWE THEIR JOBS TO POLITICAL SPONSORS AND HAVE LITTLE OR NO PURCHASING EXPERTISE. A GSA ANNUAL SPENDING SUMMARY IS INCLUDED. (JLF)