Questionable Guam Government Fuel Purchases Probed

admin's picture

OPA scrutinizes procurements, $144,000 in lost savings

By Joy White

HAGÅTÑA, Guam (Marianas Variety Guam, Dec. 28, 2012) – The government of Guam may be losing money when its employees gas up their government vehicles. During an audit of the government’s Gas Fleet Card Program, the Office of Public Accountability (OPA) found that $144,000 in savings was lost because GovGuam did not procure the lowest annual fuel costs. The audit also reported $10,739 in questioned costs for unauthorized purchase of premium fuel.

The audit reviewed GovGuam fuel purchases from October 2008 to September 2011. OPA found several questionable practices such as not reconciling fuel purchases, not getting the lowest price for fuel, and purchasing premium fuel when only regular and diesel fuel are authorized.

"No one at the Department of Administration (DOA), the General Services Agency (GSA), or any of the agencies is fully monitoring and analyzing fuel purchases," the report stated, adding many government agencies do not reconcile receipts with fuel billings. The Department of Public Works is the largest consumer of fuel and is the only agency that reconciles receipts with actual billings.

In addition, GovGuam is not getting the lowest prices for fuel. When compared to the fuel purchases of the autonomous Guam Power Authority (GPA), GovGuam paid 25 cents more on regular fuel and 5 cents more for diesel fuel, resulting in a total lost savings of $144,000. GPA has an in-house engineer who monitors fuel prices based on industry standards. The OPA recommends that DOA and GSA coordinate with GPA to monitor fuel prices.

No rationale

The procurement process of fuel is also under question. "We could not determine the rationale for the evaluation and selection of fuel vendors. There is a methodology in place; however, there is no documentation as to how the awarded vendors were selected," the report stated. The primary fuel vendor refused to meet with the OPA to discuss how they were selected.

The University of Guam was also unable to provide evidence that it utilized any kind of procurement process, which puts into question all its fuel purchases from Fiscal Years 2009 to 2011.

"UOG has an undocumented contract with its current fuel vendor that has been in place for an undetermined period of time," OPA disclosed.

The OPA also reported $10,739 in unauthorized purchases of premium fuel – GovGuam is only authorized to purchase regular and diesel fuel. The only agency authorized to purchase premium fuel is the Guam Police Department.

Today, the price of fuel on Guam is $4.78 per gallon of regular fuel. In October 2008, the price of fuel was $3.32 per gallon of regular fuel.

The report recommends: "In this time of rising costs and minimized budgets, GovGuam agencies should be more mindful of fuel costs."

Rate this article: 
No votes yet

Add new comment