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B-162394 1 (1972-03-23)

handle is hein.gao/gaobaagnf0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTI WASHINGTON, D.C. 20548 LOGISTICS AND COMMUNICATIONS DIVISION B-l6239i K92~~$ 3-7r 7 LM096623 Dear Mr. Secretary: We recently completed a study which concerned the efforts of the / Army Materiel Coand (AM3) to improve the mnagent of its logistic Q, (I-Z_ system, Our observations were conveyed to you in a dratof a pro- / posed report to the Congress on September 27, 1971. The Department of the Army comented on our report in a letter dated December 3, 1971, and generally concurred in our observations and suggestions. On the basis of the reply and after consideration of the nature of our obser- vations, we are not planning to issue a report to the Congress at this time. TWo of the matters discussed in the draft report--the implementa- tion of the depot ccmplexing concept in AMC and the streamlining of AW's procurement processes--were, in our opinion, paiff-iciarly impor- tant and we intend to follow closely the progress made in these two areas, We believe the concept of creating a complex of depots with centralized managenent and control at a headquarters depot is a sound approach and offers much potential. Whether the two or three complex plan is adopted, timetables and milestones are necessary to ensure the timely resolution of problems and the earliest possible implementation of the plan. The Army has been studying and considering the automation of mall purchase procedures for several years. We believe that the benefits from modernizing the procurement process are significant and that additional emphasis is warranted to hasten automation in this area, We recognize that the Department of Defense has recom- mended to the Procurement Commission an increase in the limitation on negotiation for small purchases* We believe that such an increase coupled with the automation of small purchase procedures would signifi- cantly enhance AMC's procurement processes. BEST DOCUMWT AVAILABLE 0 6 4 s MAR 2 s 1972

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