District of columbia: Procurement system needs major refo

Date01 March 2007
DOIhttps://doi.org/10.1108/JOPP-07-02-2007-B005
Pages229-279
Published date01 March 2007
Subject MatterPublic policy & environmental management,Politics,Public adminstration & management,Government,Economics,Public Finance/economics,Texation/public revenue
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 7, ISSUE 2, 228 2007
SELECTED REPRINTS
In order to avoid duplicate efforts of busy practitioners and
researchers who are searching for useful and practical procurement
tools and techniques, the Journal of Public Procurement reserves a
special section, “Useful Reprints,” as an information repository by
reprinting selected and useful publications such as guidelines,
reports, and instructions of governments and international
organizations. Of course, selected reprints are not necessarily useful
for all procurement professionals and for all types of procurement.
In this issue, two reprints are from the federal government. We
hope that state and local procurement officers will submit useful
state and local publications that we cannot access.
We welcome all suggestions for reprints. Please mail or e-mail
your reprint suggestions directly to:
Khi V. Thai, Editor-in-Chief
Journal of Public Procurement
Florida Atlantic University
111 E. Las Olas Blvd.
Fort Lauderdale, FL 33301
E-mail: Thai@fau.edu
Copyright © 2007 by PrAcademics Press
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 7, ISSUE 2, 229-279 2007
DISTRICT OF COLUMBIA:
PROCUREMENT SYSTEM NEEDS MAJOR REFORM
U.S. Government Accountability Office*
ABSTRACT. To improve acquisition outcomes, in 1997 the District
established the Office of Contracting and Procurement under the direction of
a newly created chief procurement officer (CPO). Since then, the District's
inspector general and auditor have identified improper contracting practices.
This report examines whether the District's procurement system is based on
procurement law and management and oversight practices that incorporate
generally accepted key principles to protect against fraud, waste, and abuse.
GAO's work is based on a review of generally accepted key principles
identified by federal, state, and local procurement laws, regulations, and
guidance. GAO also reviewed District audit reports and discussed issues with
current and former District officials as well as select state and local officials.
RESULTS IN BRIEF
The District's procurement law as currently in effect generally
does not incorporate accepted key principles of sound procurement
as established by NASPO, the ABA model procurement code, and the
FAR. As a result, the law fails to adequately promote transparency,
accountability, and competition to reduce the risk of fraud, waste,
and abuse. Although it recognizes the role of a CPO--a key component
of a comprehensive procurement law--the law falls short in a number
of other key areas. First, despite calling for uniform procurement
procedures District governmentwide, the law does not apply to
several District entities, including some that spend tens of millions of
---------------------
* Reprinted from the U. S. Government Accountability Office (2007,
January). District of Columbia: Procurement System Needs Major
Reform (GAO-07-159). Washington, DC. Several modifications are made,
including endnotes and exclusion of its Administrator’s transmittal
memorandum.
Copyright © 2007 by PrAcademics Press
230 U.S. GOVERNMENT ACCOUNTABILITY OFFICE
dollars a year to contract for goods and services. According to many
officials we spoke with, this lack of uniformity severely hampers
transparency and accountability and increases the risk of preferential
treatment of vendors, discourages competition, and ultimately drives
up costs. Second, the law fails to provide authority to the CPO to
effectively carry out and oversee the full scope of procurement
responsibilities across all entities. Third, the law has frequently been
amended to grant exemptions to its provisions and the CPO's
authority for certain entities and special procurements. Current and
former CPOs, as well as NASPO and other city procurement officials,
noted that these exemptions distort the District's law, undermine
efforts to establish a central authority, and circumvent the
competitive process. Finally, the law allows the use of noncompetitive
contracting methods, such as sole-source contracting, under broad
exceptions. It further allows higher dollar thresholds for small
purchases than are allowed in other city and federal regulations,
including the FAR; mandates the use of a District supply schedule
with a limited list of local vendors for purchases of a specified
threshold; and allows agencies under certain circumstances to
bypass the District's contracting rules to directly pay vendors without
valid contracts--payments that accounted for as much as $217
million in fiscal year 2004. Ultimately, these provisions in the law
create barriers to competition--the basic tenet of an effective public
procurement system.
In addition to generally lacking a law that reflects accepted key
principles of sound procurement, the District has been challenged to
effectively manage and oversee its procurement system. The low-level
position of the procurement office within the District's governmental
structure, combined with rapid turnover of five CPOs in the past 10
years, has resulted in fragmented and inconsistent procurement
management and oversight with multiple players having authority to
award contracts and affect procurement decisions. According to
former District CPOs, the low organizational placement weakened
their ability to direct, coordinate, and oversee procurement activities
across the District's entities. Each of the appointed CPOs cited their
lack of influence and control over the acquisition function as a major
reason for resigning their position before the end of their tenure. At
the same time, contracting and agency staff and financial managers
do not have the basic tools needed for effective procurement
management and oversight. Specifically, the District lacks a

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT