The committee chairman opened the hearings by describing California's system for procuring office machines and how GSA auditors' recommendations this cost-saving system be adopted to save money were suppressed within the agency. A Representative who had been investigating GSA procurement policies commented on deficiencies in that agency's term contracts and in the Federal Supply Service's (FSS) multiple award program. He also criticized GSA's auditing, inspection, and investigative activities. GSA's assistant inspector general for auditing stated that he concurred with the 1971 report's findings and could not explain why it was not published. The two auditors who had prepared the report in question then described their analysis of single award versus multiple award procurement and answered questions concerning the efforts of senior managers to cover up the report. A General Accounting Office representative stated that their current reviews of GSA supported the findings of the older audit report. He also provided estimates of the savings that could have resulted from competitive procurements from 1970 to 1978. Finally, two current GSA employees who had been with the FSS in 1971 were briefly questioned about their recollections and participation in decisions to suppress the audit report. The appendixes contain GSA internal correspondence regarding California's procurement policies and letters to Congressmen on this subject, testimony from GSA officials before the House Appropriations Committee in April 1971, the May 1971 text of the draft audit report, and subsequent comments by GSA officials which document disagreements between FSS and the Office of Audits and Inspections.