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PSAD-78-53 1 (1977-12-15)

handle is hein.gao/gaobaawmc0001 and id is 1 raw text is: 

DOCURENT assuRZ


04681 - (BO024908]
Vehicle Warrantiess Greater Iffiviency for Governaent by Using
Commercial Practives. ESAD-78-31 B-139743. Dtc4sber 15, 1977.
10 p . * 4 appendices (4 pp.).
Report to Secr tary# Depaxtkuet of Defense; Administrator,
General Services Adainistrat4on; Vby Aichard I, Gutmana,
Directcr, Procurement and Systems Acgliuition Div.
Issue Area: federal          at of Sods and Services (1900).
contacts Pronrommt a -Systwas Acquisition Div.
Budget -factiozz -ttim    De      (OS); 1ational Defense:
    a  ten -of flefea- P-ZcM4m*9i. -& -Ctraets tM
Organiuation CoACru41 Dbatrtent c the Army; Lesattaet of
    the  rays Army Tank-Autoeotive Bateriel Readiness Command,
    Vaxren, fI.
         The Governaent owns about 425#000 coasercial cars and
trucks and spends abo-at $164.5 million to operate and maintain
this fleet. the General Services Administration (GS1) is
remponsib-le f*r pitrchasiln most of the commercial tehicles used
by civil agencies. in March 1975, GAO reported that improvesents
worenoded in the Governmenuts use of warranties and billback
agresents. Findings/Conclusions: GSA and the Tank-lutosotive
Atter-Ul Readiness Command (TARCOE) have 'taken action on some
recoasendations contained in the 1975 report. TAICON adopted a
new standards warranty provision to be included in all its
coamercial vehicle contracts but failed to disseminate this
information to user activities. as a result, none of the
activities which were visited were aware of the full extent of
the ia;roved warranty coverage for conme,-cial vehicles or the
procedures to be followed whom billback agreements could have
been *sed. GSA has not included biliback agreements in any
coutrects except those for Postal Service vehicles. GSA agreed
to consider including bilibacks in future contracts for
coaezcial vehicles upon learning that two of the Government's
largest suppliers had stated that they vuld accept biliback
agreeents. Additional savings are possible if the Government
simplifies warranty proewdures so they aore closely ccnforn to
commercial practces. One vehicle manufacturer developed a
limited warranty registration card for use by Government
activities receiving new vehicles. a simplification o this
procedure could provide a amtho4 for maintaining required
information to vehicle users on a Government-wide basis.
Rocommndations: The Secretary of Defense and the Administrator
of GSA should develop an effective communication system that
will proviAoe complete, accurate, and timely warranty ingormation
to user activities and publicitze the advantages cf billback
agreements. (Si)

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