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LCD-75-428 1 (1975-03-19)

handle is hein.gao/gaobaabee0001 and id is 1 raw text is: 









        V• F',F' ItOLLI:R GLNERAl- OF THEF u~i r 'o STATES                      E
                   * RELEASE


     B-167699                                            YAR t   i



     The Honorable Vance Hartke                                                   LM097083
(i  ~Unit.- States Senate

     Dear Senator Hartke:

          0- September 5, 1974, :ou asked us to consider points raised in
     a constituent's letter, including (I) the rationale for the Department
     of Defense (DOD) decision to buy U.S. Department of Agriculture (USDA)
.-   Choice, instead of Good, beef for troops and (2) the reasons why the
     Army uses doctors of veterinary medicine as fooer inspectors and as
     dorestic animal veterinarians on military installations, instead of
     using less costly personnel. As .our office directed in September 1974,
     we are commenting only on DOD's decision to change beef grades..

          Beginning July 1, 1974, DO switched to Choice beef for troop
     feeding to give troops the same qa'.,itv of beef eaten by the majority
     of the American pLblic, to rcduce cu:,r~laints of poor quality of meat
     products, and to lessen the pro 'abilicy that DOD would receive lov
     quality beef as a result of its competitive-bid procedures. DOD also
     said the price difference of only S0.035 to $0.0675 a pound between
     Good and Choice beef was another reason for the switch.

          DOD w11 pay higher prices for Choice beef without assurance that
     it will receive a coimensurate increase in value. The 50.055 to $0.0675
     price difference applies to carcasses instead of the processed cuts
     bought ,or troop feeding. The difference in costs for processed cuts
     ranges from $0.25 to $0.45 a pound. On the basis of these oifferences
     and the volume of meat purchases for May 1974, DOD will spend $14 million
     more annually to buy Choice rather than Good beef. A DOD official told
     us that DOD originally estimated that the use of Choice beef would
     increase food costs by $9 million annually.

     BACKGROUND
 -/       The Defense Supply Agency's Defense Personnel Sroport Center,
     Philadelphia, Pennsylvania, buys all troop-issue beef. The Center
     buys four different cuts of beef for troop issue, including (1) grill
     steaks--rib eye,. top sirloin, butt, and loin strip, (2) swiss steak,
     (3) oven riasts--knuckle, inside round, eye of round, and outside
     roui.d, and (4) pot roasts--chuck roll (blade end), shoulder clod,
     and chuck roll (neck end). The Center also buys ground beef patties
     and Dulk ground beef.

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