Summary: Federal agencies buy billions of dollars worth of goods and services each year through the General Services Administration's (GSA) multiple award schedule program--everything from desks and paper to mainframe computers. GAO discovered that the program's prices for top-selling items were higher than those charged the public or state governments. GAO believes that the program policy statement is ambiguous as to whether GSA may consider the discounts that program offerors give to dealers, distributors, and original equipment manufacturers when GSA sets the government's negotiation objective. At times, GSA contracting staff used these customers' discounts; at other times, they did not. GAO believes that GSA should consider the discounts that offerors give to all types of customers but must take into account differences in terms and conditions between customers in the multiple award schedule program and other customers. GSA needs information from program offerors to determine the reasonableness of their prices. GAO believes that program data requirements should be clear and consistent with the negotiation objectives and should be the minimum needed to establish price fairness. GSA should be able to obtain data from manufacturers to establish the reasonableness of certain dealers' prices.
