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PSAD-79-81 1 (1979-05-07)

handle is hein.gao/gaobabmte0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. D.c. 2048 3-162313 'ay 7, 1979 or The Honorable Samuel S. Stratton Chairman, Subcommittee on Armed Services Investigation Committee on Armed Services House of Representatives Dear Mr. Chairman: On February 5, 1979, you requested that we examine small purchases made by the Department of-U-ernse (DOD), with par- ticular emphasis on contracts awarded by the Defense Lcgis- tics Agency (DLA) to the Cardwell Condenser Corporation, bL4 (2/J-i/' Lindenhurst, New York, and its affiliates (hereafter referred to as Cardwell). As you requested, we met with your office on February 12, 1979, to discuss the specifics of your re- quest. Based on your letter and this discussion, it was agreed we would: --Review 50 contracts awarded during the first 4 months of fiscal year i979 by each of the 6 DLA supply centers and i procurement office for each service (40 between $500 and $10,000 and 10 under $500). --Review a representative number of contracts awarded to Cardwell, in addition to the 50 contracts (10 from each of fiscal years 1978 and 1979). --Evaluate DLA's study of awards made to Cardwell. --Determine whether DOD's small purchase procedures insure that reasonable prices are being negotiated. The supply centers and service procurement offices we visited are listed in enclosure I. We also visited the ,>'VDLA Headquarters in Alexandria, Virginia. At each of the supply centers, we determined the universe of contracts available for review and selected the contracts for detailed review at random. Our primary (950535) 1218

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