OIG: USPS spent $1.3 billion in non-competitive purchases

A new Inspector General’s audit says the US Postal Service spent $1.3 billion on non-competitive purchases in FY 2011 and 2012- and more than a third of those purchases lacked the required documentation to insure that the purchases were properly made:

uspsoigContracting officials did not provide documentation to support price or cost reasonableness and justifications to award noncompetitive purchases for 21 of 56 purchases (or 38 percent of purchases) valued at $37,064,806. Specifically, they did not conduct price or cost analysis or maintain documentation to support the reasonableness of 13 purchases. In addition, they did not fully complete the noncompetitive justification for awarding 10 purchases, two of which were also missing documentation to support price reasonableness. Further, contracting officials did not always obtain required contract documents from international suppliers due to cultural and language barriers.

Based on our statistical sample, we projected that at least $210 million of the $1.3 billion in purchases made during fiscal years (FY) 2011 and 2012 did not contain documentation to support price or cost reasonableness and justifications to award noncompetitive purchases. This amount was claimed as unsupported questioned costs because of missing or incomplete documentation or failure to follow policy or required procedures but does not necessarily indicate that the Postal Service incurred actual loss.

Noncompetitive Purchasing Practices Audit Report .

  • 30 Year Vet

    Duh. Of course this is going on. I’ve been saying this for years. The GOB (Good Ole Boys) live large on the Postal dollar. Then you get to hear them whine to congress how their being mistreated. While all of us other peons work tirelessly to try to save this dump. THEY ALL MUST GO.

  • sick of it

    how come this isn;t mentioned at the senate hearings….?