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PSAD-78-47 1 (1978-01-25)

handle is hein.gao/gaobaawpm0001 and id is 1 raw text is: 



                          DOCUMENT RESUME

 04931 - [ B0265131] .

 Keed for Improvements-in the Federal Supply Service's Pri-'rity
 Requisitioning Systes.'-P5AD-78-47; B-114307. January 25, 1978.
 20 pp. 3 appendices 7'-).

 Report to the Congress; by Elmer B. Staats, Comptroller General.

 Issue Area: Federal procurement of Goods and Services (1900);
     Federal Procurementof Goods and Services: Definition of
     Performance Req~tirents in Relation to Need of the
     Procuring Agency1 .1902);Facilities and Material Management
     (700).
Contact: Procurement and Systems Acquisition Div.
Budget Function: Ge   -  Government: Other General Government
     (806).
 Organization Concerne eGeneral Services Administration.

         T!,e ?ederai Supply Service (FSS) ie responsible for the
 procurement and   : ..   goods and services to Federal
 agencies. It m-aintains a priority requisitioning system in which
 customers ussi-n a p,., 'ity designator to each regqisitioi
 indicating th,   enciS4,p their reed, and requests are handled
 according to,      ,rti ties. findings/Ccnclusions:-There was
 extensive misu      '41 priority codes. In a sample of civil
 and military re%         in three FSS regions, 79% of high
 priority requisit.       ;led had been assigned invalid
 desiqnators. In Mar      , FSS started using a new computer
 system, the Centro       ition Router, to Jetermine the most
 economical depoot       e customer requests. During fiscal year
 1977, the system Le.   id 95% of high priority requisitions,
 which could not be filied by primary depots, to secondary depots
 at an increase in transportation costs of about $1.06 million.
 High costs are also incurred by emergency purchases of
 relatively small quantities of items needed to fill priority
 requisitions. Delays in processing routine requisitions are
 caused by the large v lume of high priority requisitions bein,
 handled. FSS believes that the responsibility for Correcting the
 misuse of high priorlites belongs with the requisitioning
 activities. While GAOacknowledged that the agencies are
 responsible for assigpiug priorities, FSS should do what it can
 to see that agencies comply with the intent of the priority
 &]stem. Recommendati,ns: The CoaEissioncr of FSS should be
 required to: establish control procedures for acnitoring the use
 of priority codes by c Vtomsrs; initiate programs to assist
 Federal aqencieE in Neveioping management programs and
 procedures to promote QIe proper use of the priority code
 system; reevaluate tfe controls in the Centrrl Requisition
 Router decision proceg8pes; and stay the feasitility of
 implementing a proqrjm in which a premium wculd be paid by
customers for priority treatment of orders. (HIW)

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