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Postal Procurement: Ethics Violations Did Not Invalidate an Automation Contract

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Report Type Reports and Testimonies
Report Date Aug. 13, 1992
Report No. GGD-92-119
Subject
Summary:

In reviewing the U.S. Postal Service's (USPS) purchase of an image processing subsystem that would allow the addition of bar codes during mail processing, GAO found that USPS acted within the scope of its procurement authority in awarding the contract to ElectroCom, which has secured more than half of all postal automation contract dollars during the past decade. Several USPS officials accepted meals and travel from a German affiliate of ElectroCom, a violation of both the law and USPS standards of conduct. Even though these actions created the appearance of a conflict of interest, the contract could have been legitimately awarded to ElectroCom under federal procurement rules.

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