IG Calls for Tighter Controls over Noncompetitive Contracts at USPS

The USPS annually spends about 28 percent of its contract dollar commitments through noncompetitive contracts but is not ensuring that all of its controls over such contracts are being followed, an IG audit has said.

Spending on such contracts was $1.5 billion, $2.8 billion and $1.7 billion in 2018-2020, it said, adding that “there are business situations when the noncompetitive purchase method better suits or is needed to meet the business objectives of the Postal Service.”

However, it said that in a sample of 157 such contracts, it found 16 valued at $1 million or more. In 14 of those, requirements for public posting were not followed because contracting officers “misinterpreted the publicizing policy, believed that publicizing was not a common practice, or were unaware of the policy itself” or said that they “because they lacked time due to the COVID-19 pandemic or did not request a waiver from publicizing.”

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