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B-146929 1 (1972-10-25)

handle is hein.gao/gaobaagbw0001 and id is 1 raw text is: 
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                   UNITED STATES GENERAL ACCOUNTING OFFIC   fp/.-
                          WASHINGTON, D.C. 20548


LOGISTICS AND COMMUNICATIONS
       DIVISION
                                                      OCT 251972


                                                 LM096264
    Dear Mr. Sampson:

         In fiscal year 1971 the acquisition cost of excess per-
    sonal property that became available for redistribution to
    Federal agencies was about $5.2 billion. About $1.7 billion
    was classified as reportable property--property having a high
    potential for use by other Federal agencies--and $3.5 billion
    was classified as nonreportable property--property having low
    use potential or of specialized interest to only a few agen-
    cies. The General Services Administration (GSA) transferred /7
    for further Federal use reportable property costing about
    $422.7 million and nonreportable property costing about
    $328.5 million.

         Our review of GSA's management of the excess personal
    property program showed that the establishment of a central-
    ized7 automated screening procedure would improve the oppor-
    tunities to identify excess property that could be returned
    to the GSA supply system. Also, we noted that periodic de-
    velopment of information on the relative effectiveness of the
    various methods used by GSA to promote the transfer of excess
    personal property could be used to improve program management.

    INCREASING RETURN OF EXCESS
    PROPERTY TO SUPPLY SYSTEM

         GSA policy provides that suitable GSA-managed property
    which is excess to agencies will be returned to the GSA sup-
    ply system inventory when economically justifiable. Gener-
    ally, this policy means that new excess property will be
    returned to the supply system when the inventory stock level
    for the item is low enough to permit acceptance of the excess
    without causing overstockage.

         We reviewed GSA procedures and practices for acquiring
    excess property for return to the GSA supply inventory and
    found that in many instances GSA did not acquire excess prop-
    erty that could have been returned to inventory. In some
    cases, GSA purchased stock items from commercial sources at
    the same time 6r shoftly after similar items were available
    as excess property.

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