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B-128938 1 (1974-06-12)

handle is hein.gao/gaobaaems0001 and id is 1 raw text is: 1 r P - - C r R 2 U 0 V S C d . s 1 d , t h e (M e n , e r a, I RELEASED Pe c~o e eOP * ct the bass ov Sp, - by the Office of Coagessonaj ReatE ns, a is kept by the Distribution Section, pubicaio - COMPTfROLLER GENERAL OF THE UNITED STATES ~ ~ WASHINGTON, D.C. 20548 B-12938JUN 12 1974 0 Y05 3 The Honorable H. R. Gross House of Re-oresentatives KDear Mr. Gross: This report is in response to your request of March .11, 1974, that the General Accounting Office provide you information on the 1uqe ovqerment mailing .indicia for the mailing of -a'dve rt is ing by-a-c-ommercial -PcompanyJ You asked -that we determine why the advertising was being mailed under a Government indicia, the respon- sible officials,, and our opinion regarding the legality of this action. The advertising in question was mailed by Metcut Research . )1 0 Associates, which has a cost-plus-fixed-fee contract to operate the Machinability Data Center (MDC), an information analysis center spon- sored by the Department of Defense (DOD) Army Materials and Mechanics Research Center. For the period August 1, 1973, to July 31, 1974, the contract is estimated at $150,000. The Defense Supply Agency administers the contract for DOD and provides the Government mailing indicia used by MDC. MDC's objective is to increase the productivity of scientists, engineers, and technicians engaged in Defense scientific and engineering programs by provi1ding information analysis services to DOD, its contra~c- tors and gr,,antees, and to other Government agencies and contractors. Certain services may also be provided to the private sector. To accom- plish this objective, Metcut prepares bibliographies, data publications, flyers, and the MDC handbook for sale to interested persons. Metcut is required -under the contract to establish a program to make MCsusers and potential users aware of MDC's products and services. The advertising in question was mailed in accordance with this provision and the -proceeds from MDC's sales revert to the Govern- ment by applying them to the cost of maintaining DC. Me t is authorized under its contract GQrosesGovernment-maij.ng Indicia and.DOD has advised usthat this arrangement has saved the Government about $56,000 over a period of about 7 years. Use of mailing indicia by Government contractors is Gvermitted under the Armed Services sib e ffi i a s , nd our op ni o r gar i g e2 l e a i yo0ti7c i n Th dvrisn i usto wsmald yMtctReerc 7

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