Natural Gas: Opportunities for Federal Cost Savings Through Competitive Purchases
Abstract
Changes in federal regulations affecting the sale, purchase, and transportation of natural gas in the late 1970s and early 1980s have provided the federal government with greater opportunities to purchase natural gas from sources other than a single public utility serving a local area. By purchasing natural gas from a variety of sources, such as at the wellhead where natural gas is produced, users are afforded opportunities to shop for the most competitive prices and reduce their natural gas costs. Because of the large dollar amount that federal agencies spend for natural gas-over $500 million annually-and the potential opportunity to reduce costs, we initiated this review of natural gas purchases by military and civilian facilities to determine (1) the extent to which competitive procurements are used by federal facilities, (2) actual and potential cost savings of selected facilities that have been or could be buying competitively, and (3) why competitive procurement may not be more widely practiced.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 1990
- Accession Number
- AD1177453
Entities
People
- Allen R. Walter
- Barbra A. Chiapella
- Francis J. Kovalak
- J. D. Peach
- James A. Fowler
- Judy A. England-joseph
- Robert F. Stephens
Organizations
- United States Government Accountability Office