The District drives up procurement costs and leaves itself open to fraud because it lacks the resources, organization, legal structure and oversight of an effective contracting system, a federal auditor found in a damning new report.

Prepared by the U.S. Government Accountability Office at the request of U.S. Rep. Thomas M. Davis III, R-Va., the audit picks apart D.C. procurement laws and policies, pinpointing weaknesses in the mayor’s office, D.C. Council and the Office of the Chief Financial Officer. Nearly 22 percent of the District’s fiscal year 2005 budget was spent on procurement, the GAO reported — more than 20,000 transactions valued at $1.8 billion.

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