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B-146875 1 (1972-06-20)

handle is hein.gao/gaobaagji0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UN V SA WASHINGTON. D.C. 04 B-146875 JUN 2 0 1972 Dear Senator Proxmi re: LM096522 Your office requested that we look into the procedures a 0 and practices followed by the Defense Personnel Support Cen- 7 ter, Philadelphia, Pennsylvania, for _ricing produce for sale 7 to military commissary stores. You were concerned particu- larly with whether produce was being sold to the commissaries / at less than cost to the Government. The results of our in- quiry were previously discussed in detail with your office and are summarized in this letter. We found that items could be offered for sale at prices which were either more or less than actual cost because of the Center's pricing procedures. The Center, for administra- tion purposes, establishes produce prices at least 5 weeks before the effective date of the price list. Consequently, standard prices are set which may be more or less than the prevailing market prices on the effective date of the price list. CATALOGING AND PRICING SUBSISTENCE ITEMS The Federal Supply Catalog contains subsistence items approved for troop issue and for sale to commissary resale stores. The catalog is revised at least once every 2 years, and change bulletins showing interim additions and deletions are issued quarterly. The Center is responsible for estab- lishing standard prices for all subsistence items listed in the catalog. The Federal Supply Catalog Perishable Subsistence Price List is published quarterly, and price change notices are listed monthly. Standard prices are generally established for all centrally managed items for inventory accounting and billing purposes. Some catal6g items may not be shown on the price list either because they are procured in limited quan- tities in several geographical areas at varying prices or be- cause they are currently out of season. The Center also publishes a handbook of unlisted catalog items. These items are not stocked by Center depots and gen- erally are available only for sale to the commissary stores and not for troop issue. They are requisitioned through the Center for direct delivery to the commissary stores at cost plus transportation charges. 7s0~z 0

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