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GGD-76-13 1 (1975-11-05)

handle is hein.gao/gaobaaapw0001 and id is 1 raw text is: 



                   COMPTROLLER GENERAL OF THE UNITED STATES
                            WASHINGTON, D.C. 20548


   B-114874                            NOV 5 1975
                                                         .

   The Honorable Joe L. Evins
   Chairman, Committee on Small Business
   House of Representatives

   Dear Mr. Chairman:

        This report is in response to the recommendation in an
 .jOctober 16, 1974, report of a Subcommittee of the House of     /4
;.iRepresentatives' Permanent Select Committee on Small Business. (/ 7
   That report recommended that we investigate the Postal Serv-
   ice's centralized automotive parts distribution system to
   determine if it is achieving real savings or whether it
   might be more profitable to obtain automotive parts from
   local distributors. The Subcommittee requesting this work
   no longer exists. As agreed, we are submitting our report
   to your Committee which now has jurisdiction over this area.

        We reviewed selected vehicle maintenance facilities in
   the Service's Eastern Region to (i) determine the total dol-
   lar value of repair parts purchased from local distributors
   versus other sources, (2) compare the price paid for parts
   procured from local distributors with the cost of these
   parts from the centralized distribution system, and (3)
   determine the time required to receive parts through the
   system.

        Our examination showed:

        --Only 8.8 percent of the dollar value of automotive
          repair parts and supplies used by selected vehicle
          maintenance facilities were acquired from the
          centralized distribution system.

        --The Service is saving about 40 percent on parts
          acquired through the centralized automotive parts
          distribution system.

        --The time required to place and receive an order through
          the centralized distribution system averaged about 10
          days and does not appear to hamper vehicle maintenance
          facilities' operations.
                                                      GGD-76-13

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