As discussed below, the agencies provided clear, reasonable, and consistent reasons for excluding contracts from mandatory FACNET processing. Widespread public notice may not be required or appropriate for other types of contracts. Little Information Reported on Agencies’ EC Transactions

Available data shows limited and declining use of FACNET for contract awards. However, the lack of governmentwide data on agencies’ use of other EC purchasing methods, such as purchase cards and orders placed electronically against catalogs and indefinite delivery/indefinite quantity contracts, impedes efforts to assess the government’s progress in moving toward doing business electronically and achieving the “single face to industry” goal. Thus, no governmentwide data is currently available on the volume and value of all EC procurements. Both GSA and the Office of Federal Procurement Policy commented that they are modifying the Federal Procurement Data System to collect EC statistical information and it may not be available until the year 2000. These were contracts where (1) widespread solicitation is inappropriate, (2) transmission of essential information through FACNET is impracticable or infeasible, or (3) alternative procurement methods, including other EC methods, are more efficient. They provided clear, reasonable, and consistent business and technical reasons to support their positions. Scope and Methodology

To address our objectives, we asked the Senior Procurement Executives at 25 federal agencies to give us information and explanations about (1) contracts they identified as not suitable for acquisition through FACNET and (2) the extent to which their agencies’ competitive contract awards between $2,500 and $100,000 were generally suitable for acquisition through a system with full FACNET capability. DOD noted that it is incorporating EC into its business practices within the simplified acquisition threshold. DOD believes agencies’ procurement officials should be allowed to determine for their agencies those classes of contracts not suitable for FACNET.
Why GAO Did This Study

Pursuant to a legislative requirement, GAO provided information on the classes of contracts in amounts greater than the micro-purchase threshold and not greater than the simplified acquisition threshold that are not suitable for acquisition through a system with full Federal Acquisition Computer Network (FACNET) capability, focusing on: (1) characteristics of contract actions that agencies found not suitable for FACNET processing and evaluated the reasonableness and consistency of agencies' explanations why they were unsuitable for FACNET; and (2) governmentwide electronic commerce (EC) statistics to determine agencies' use of FACNET and other EC purchasing methods.

What GAO Found

GAO noted that: (1) senior procurement officials generally found contracts unsuitable for FACNET when: (a) widespread public solicitation of offers was inappropriate; (b) transmitting essential contracting information through the network was not practical or feasible; or (c) alternative purchasing methods were faster and more efficient; (2) the agencies provided clear, reasonable, and consistent business and technical reasons why numerous types of contracts should be excluded from mandatory FACNET processing; (3) available data showed continuing limited use of FACNET for contract awards; (4) however, there is no governmentwide data available on agencies' use of other EC purchasing methods; (5) consequently, it is difficult to assess the government's overall progress in doing business electronically in a standard way; and (6) governmentwide EC statistical information may not be available until the year 2000.