Identifier
Created
Classification
Origin
09STATE87020
2009-08-20 20:28:00
UNCLASSIFIED
Secretary of State
Cable title:
Impact of GAO Decision on Purchasing Vehicles
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UNCLAS SECTION 01 OF 02 STATE 087020
SIPDIS
E.O. 12958: N/A
TAGS: ATRN AMGT APER KSEP
SUBJECT: Impact of GAO Decision on Purchasing Vehicles
in the United States
UNCLAS SECTION 01 OF 02 STATE 087020
SIPDIS
E.O. 12958: N/A
TAGS: ATRN AMGT APER KSEP
SUBJECT: Impact of GAO Decision on Purchasing Vehicles
in the United States
1. Summary. The General Accountability Office (GAO)
recently ruled that the General Services
Administration's (GSA) practice of accepting orders for
motor vehicles based on pricing from expired contracts
that will be filled in the next Fiscal Year (FY) do not
constitute a binding obligation. As a result, the
Department cannot use FY-2009 funds to order vehicles
through GSA contracts that will not be awarded until
November 2009, which will be FY 2010. This cable is
meant to provide guidance on options for obtaining
Program and ICASS vehicles based on the kind of funding
posts will use to purchase vehicles in the United States
through the mandatory State/GSA procurement process.
http://www.gao.gov/decisions/appro/317249.htm . End
Summary.
2. The timing of the GAO ruling this late in the fiscal
year is unfortunate, but should not prevent the
Department from meeting posts' vehicle requirements.
The GSA contracts with Ford, General Motors (GM) and
Chrysler automakers are still available to obtain model
year 2009 vehicles in the States with FY 2009 funding.
Options are outlined in para 3 for obtaining Program and
ICASS Vehicles. Posts are reminded that when buying
vehicles from the United States it is mandatory to place
the order through the Motor Vehicle Program's buying
unit that obtains vehicles from GSA, and please remember
that we still have a mandate to procure American
vehicles if at all possible. If posts instruct MVP to
order ICASS vehicles off the Chrysler, Ford, and GM
contracts effective in November 2010, please ensure that
the appropriate funds are used. If your post is
scheduled for a replacement program vehicle in 2010, you
will be contacted by MVP to inquire as to the kind of
vehicle needed.
3. Options for obtaining Program and ICASS Vehicles.
================
Program Vehicles
================
a. The contracts for purchasing 2009 model years from
Ford, GM, and Chrysler automakers are still available
through buying seasons ending 30 September 2009 and
posts can request these vehicles from MVP. Posts
should go to GSA AutoChoice
http://www.gsa.gov/Portal/gsa/ep/contentView. do?conten
tType=GSA_BASIC&contentId=8161 to determine the model
and options required in advance of the procurement
discussions with MVP.
b. Model year 2010 vehicles will be available for
purchase in November, but only with FY 2010 funding.
No FY 2009 funding can be used to buy these vehicles
as was done in the past.
c. MVP will be reviewing requests for right hand drive
vehicles that can be bought through RPSO Tokyo or
locally. We expect posts to do everything possible to
source American vehicles (if available) on the local
market.
d. Armored vehicles are funded by Diplomatic Security and
most likely will not be an issue for posts.
==============
ICASS Vehicles
==============
a. If carryover funds are an issue for posts, follow the
same process as described above for purchasing model
year 2009 Program Vehicles.
b. If carryover funds are not an issue, posts may want to
defer replacement vehicle procurements until FY 2010
when new GSA vehicle contracts will be in place for
model year 2010 vehicles.
c. Please share this information with your Financial
Management Officer and encourage post management teams
to discuss the options that best meet their ICASS
fleet needs.
4. Local Procurement: MVP will expedite the review of
local procurement waivers for both ICASS and Program
Vehicles. Please keep in mind the guidelines that a
STATE 00087020 002 OF 002
local vehicle must cost one-third less to maintain over
the life of the vehicle than a comparable US-made model.
If a local dealer carries US made vehicles, we expect
post to include pricing from that vendor. To expedite
the purchasing of program vehicles, MVP will provide
posts with price ranges for different capacity vehicles,
and asks that if post needs to procure a local vehicle
that the cost be within in that price range.
5. Planning for Next Year: GSA has stated that they
will try to negotiate contracts with US automakers that
begin in September rather than October or November (the
next fiscal year) and last much longer into the year.
As funds become available, MVP will aggressively move to
procure replacement program vehicles for posts pending
funding availability. Posts should work early and often
with MVP desk officers to assist in getting the vehicles
early in the year.
6. If you have any questions, comments or concerns,
please e-mail John Dockery, Branch Manager for the Motor
Vehicle Program at dockeryjc@state.gov or your desk
officer via motorvehicleprogram@state.gov.
7. Minimized considered.
CLINTON
SIPDIS
E.O. 12958: N/A
TAGS: ATRN AMGT APER KSEP
SUBJECT: Impact of GAO Decision on Purchasing Vehicles
in the United States
1. Summary. The General Accountability Office (GAO)
recently ruled that the General Services
Administration's (GSA) practice of accepting orders for
motor vehicles based on pricing from expired contracts
that will be filled in the next Fiscal Year (FY) do not
constitute a binding obligation. As a result, the
Department cannot use FY-2009 funds to order vehicles
through GSA contracts that will not be awarded until
November 2009, which will be FY 2010. This cable is
meant to provide guidance on options for obtaining
Program and ICASS vehicles based on the kind of funding
posts will use to purchase vehicles in the United States
through the mandatory State/GSA procurement process.
http://www.gao.gov/decisions/appro/317249.htm . End
Summary.
2. The timing of the GAO ruling this late in the fiscal
year is unfortunate, but should not prevent the
Department from meeting posts' vehicle requirements.
The GSA contracts with Ford, General Motors (GM) and
Chrysler automakers are still available to obtain model
year 2009 vehicles in the States with FY 2009 funding.
Options are outlined in para 3 for obtaining Program and
ICASS Vehicles. Posts are reminded that when buying
vehicles from the United States it is mandatory to place
the order through the Motor Vehicle Program's buying
unit that obtains vehicles from GSA, and please remember
that we still have a mandate to procure American
vehicles if at all possible. If posts instruct MVP to
order ICASS vehicles off the Chrysler, Ford, and GM
contracts effective in November 2010, please ensure that
the appropriate funds are used. If your post is
scheduled for a replacement program vehicle in 2010, you
will be contacted by MVP to inquire as to the kind of
vehicle needed.
3. Options for obtaining Program and ICASS Vehicles.
================
Program Vehicles
================
a. The contracts for purchasing 2009 model years from
Ford, GM, and Chrysler automakers are still available
through buying seasons ending 30 September 2009 and
posts can request these vehicles from MVP. Posts
should go to GSA AutoChoice
http://www.gsa.gov/Portal/gsa/ep/contentView. do?conten
tType=GSA_BASIC&contentId=8161 to determine the model
and options required in advance of the procurement
discussions with MVP.
b. Model year 2010 vehicles will be available for
purchase in November, but only with FY 2010 funding.
No FY 2009 funding can be used to buy these vehicles
as was done in the past.
c. MVP will be reviewing requests for right hand drive
vehicles that can be bought through RPSO Tokyo or
locally. We expect posts to do everything possible to
source American vehicles (if available) on the local
market.
d. Armored vehicles are funded by Diplomatic Security and
most likely will not be an issue for posts.
==============
ICASS Vehicles
==============
a. If carryover funds are an issue for posts, follow the
same process as described above for purchasing model
year 2009 Program Vehicles.
b. If carryover funds are not an issue, posts may want to
defer replacement vehicle procurements until FY 2010
when new GSA vehicle contracts will be in place for
model year 2010 vehicles.
c. Please share this information with your Financial
Management Officer and encourage post management teams
to discuss the options that best meet their ICASS
fleet needs.
4. Local Procurement: MVP will expedite the review of
local procurement waivers for both ICASS and Program
Vehicles. Please keep in mind the guidelines that a
STATE 00087020 002 OF 002
local vehicle must cost one-third less to maintain over
the life of the vehicle than a comparable US-made model.
If a local dealer carries US made vehicles, we expect
post to include pricing from that vendor. To expedite
the purchasing of program vehicles, MVP will provide
posts with price ranges for different capacity vehicles,
and asks that if post needs to procure a local vehicle
that the cost be within in that price range.
5. Planning for Next Year: GSA has stated that they
will try to negotiate contracts with US automakers that
begin in September rather than October or November (the
next fiscal year) and last much longer into the year.
As funds become available, MVP will aggressively move to
procure replacement program vehicles for posts pending
funding availability. Posts should work early and often
with MVP desk officers to assist in getting the vehicles
early in the year.
6. If you have any questions, comments or concerns,
please e-mail John Dockery, Branch Manager for the Motor
Vehicle Program at dockeryjc@state.gov or your desk
officer via motorvehicleprogram@state.gov.
7. Minimized considered.
CLINTON