NCJ Number
72796
Date Published
1980
Length
44 pages
Annotation
A Government Accounting Office (GAO) evaluation of over 600 grant procurement transactions by State and local governments and nonprofit community organizations found that State and local governments generally have sound procurement procedures but that nonprofit organizations have less sophisticated procedures to which they do not strictly adhere.
Abstract
Reviewers conducted onsite evaluations and analyses of State and local grant procurement laws, regulations, policies, and procedures in six States. Local government reviews covered 4 major cities, 3 smaller municipalities, 4 counties, 17 school districts, 5 regional transportation authorities, and several nonprofit community organizations. Some weaknesses and abuses were found in procurement procedures. Although many State and local procurement laws and regulations require competitive bidding, competition is often not obtained or is unduly limited or restricted. Attachment 0 (which establishes procurement standards and guidelines for Federal grant programs) and some State and local laws lack provisions to ensure that competition is maximized and that the opportunities for favoritism, fraud, and collusion are substantial. Some grantees lack adequate safeguards and controls needed to protect against procurement abuses. Furthermore, the lack of oversight over grant procurements could be adding substantially to procurement costs. Grant costs could be reduced by joint and centralized purchasing, indefinite quantity and indefinite delivery contracting, and use of Federal excess and surplus property. The study recommends developing guidelines for grantor agencies and some specific amendments to management circulars. An appendix contains OMB Circular A-102, Attachment 0. Tables are included.