Federal Supply Schedule - Debt Collection Services

B-259975 Sep 18, 1995 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Sec. 3718 to contract for debt collection services is subject to the General Services Administration's authority under 40 U.S.C. DECISION The Acting Chief Financial Officer of the Department of Labor has requested our opinion on whether the agency's Mine Safety and Health Administration (MSHA) is required to use a General Services Administration (GSA) mandatory federal supply schedule contract for its debt collection services. The Administrator of GSA is authorized to prescribe policies and methods of procurement and supply of personal property and nonpersonal services for executive agencies to the extent that he determines that so doing is advantageous to the government in terms of economy. View Decision Matter of: Federal Supply Schedule - Debt Collection Services File: B-259975 Date: Sepember 18, 1995 Agency authority under 31 U.S.C. Sec. 3718 to contract for debt collection services is subject to the General Services Administration's authority under 40 U.S.C. Sec. 481 to prescribe the method of procurement, including requiring agencies to purchase from a mandatory federal supply schedule. DECISION Under the Federal Property and Administrative Services Act (FPAS Act), 40 U.S.C. Sec. 481, the Administrator of GSA is authorized to prescribe policies and methods of procurement and supply of personal property and nonpersonal services for executive agencies to the extent that he determines that so doing is advantageous to the government in terms of economy, efficiency or service. 40 U.S.C. Sec. 481(a)(1). The Administrator is also authorized to "procure and supply personal property and nonpersonal services for the use of executive agencies . . . ." 40 U.S.C. Sec. 481(a)(3). Pursuant to FPAS Act authority, the Administrator, GSA, established a federal supply schedule program. Under this program, GSA administers a mandatory federal supply schedule contract for debt collection service. Pursuant to section 8.404-3 of the Federal Acquisition Regulations, MSHA applied to GSA for a waiver from mandatory use of debt collection services listed in the federal supply schedule. 48 C.F.R. Sec. 8.404-3. [1] Section 8.404-3(a) provides: "When an ordering office that is a mandatory user under a schedule determines that items available from the schedule will not meet its specific needs, but similar items from another source will, it shall submit a request for waiver to the Commissioner . . . ." MSHA maintained that it required and could get more comprehensive collection services from a debt collection agency that specialized in collecting debts within the mining industry. MSHA stated that while the cost of such specialized services could be higher, because of the familiarity of such firms with industry participants, the rate of return typically more than covered the additional cost of using a specialist firm. GSA denied the request for waiver because it concluded that the services provided by a specialist firm were no different than services currently provided by the schedule contractor. MSHA requested reconsideration of that determination and GSA reaffirmed its initial determination. In its request for reconsideration, in addition to arguing for a waiver, MSHA asserted that it had authority pursuant to section 13 of the Debt Collection Act, 31 U.S.C. Sec. 3718, to contract on its own with a debt collection agency. MSHA has asked that we review this authority. MSHA's question is one of statutory construction. It is a well established rule of statutory construction that statutes should be construed harmoniously so as to give maximum effect to both whenever possible. B-258163, Sept. 29, 1994; 53 Comp.Gen. 853, 856 (1947). We can easily harmonize both statutes here. An agency's authority to procure particular goods or services is distinct from GSA's authority to prescribe how the procurement is to be accomplished or even to conduct the procurement itself. The Administrator of GSA is vested by statute with the authority and responsibility for determining policy and methods of procurement and to procure and supply personal property and nonpersonal services for executive agencies. 40 U.S.C. Sec. 481(a)(1), (3). Civilian agencies are required to "make purchases and contracts for property and services in accordance with . . . implementing regulations of the Administrator." 41 U.S.C. Sec. 252. GSA has issued its implementing regulations as the Federal Acquisition Regulations. Section 8.404(b) provides: "Before soliciting commercial sources, executive agencies shall determine if the required supplies or services, or similar supplies or services fulfilling the same purpose, are available from schedules (see FPMR 101-26.4)." 48 C.F.R. Sec. 8.404(b).