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B-174078 1 (1971-11-16)

handle is hein.gao/gaobaaenn0001 and id is 1 raw text is: I. ,i U~ I~ - t to be rageued 9Outs~ tke genera~ q,962 Accounteg office except o~n the bgsis of sp fc a,,V -9 t b i 4 o f C o n g r aa n al R 0u tt n / 1 . . ELEASED COMPTROLLER GENERAL OF THE U TE ....... .. . WASHINGTON. D.C.27 B-174078 NOV 1617 :I Dear Senator Proxmire: This is in response to your letter of August 27, 1971, in which you requested that we initiate a preliminary inquiry I at the Defense Industrial Supply Center (DISC), Philadelphia, ./Pennsylvania, to determine whether excessive Government spend- ing was occurring as a result of pressure being exerted upon the procurement agents to process an average 40 contracts each week.7Ar9-_US;-Ts- you requested, we looked into the-work load of the buyers and the effects that prolonging the processing time would have on costs. In making our inquiries we held discussions with respon- sible DISC officials and examined performance and other per- tinent records at DISC. Information that we obtained shows that during 1969 group performance standards were established by type of award for each of DISC's three procurement divisions. The standards were developed to measure the productivity of a procurement di- vision as a unit. When factored, the standards equated to about 42 awards each week for one procurement division, 24 awards for another division, and 29 awards for the third divi- sion. We were advised that the difference in the standards was attributable to the complexity of buys being processed by the divisions. As complexity increases the weekly standard number of awards to be processed is lowered. In April 1970 the three procurement divisions were reor- ganized into two. Subsequently DISC personnel performed a detailed work-measurement analysis and issued new standards which became effective on May 1, 1971. The new standards equate to 32 awards for one division and 36 awards for the other division. We were advised by the Director of Procurement and Pro- duction that the productivity standards established for the divisions' buyers were group standards, that they measured productivity of a division as a whole, and that they could not be applied to an individual buyer. He stated that a produc- tivity evaluation of each buyer was not made. Consequently we were unable to obtain weekly productivity information for an individual buyer. The information accumu- lated on a divisional basis, however, showed that, for fiscal years 1969 through 1971, the procurement divisions achieved or exceeded their established effectiveness rate. We also found 50TH ANNIVERSARY 1921-1971

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