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GGD-79-30 1 (1979-04-11)

handle is hein.gao/gaobaazaw0001 and id is 1 raw text is: RESTRIC4 - Not to be released outside the General Accounting Office except on the basis of specific approval by the Office of Congressional Relations. UNITED STATES GENERAL ACCOUNTING OFFICE GENERAL, GOVERNMENT DIVISION WASHINGTON, D.C. 20548 APRIL 11, 1979 B-114874 C. The Honorable James Wright J House of Representatives The Honorable Sam B. Hall, Jr. House of Representatives Your letter dated May 16, 1978,requ este that we review complaints that t-he U.S. Postal Serva may putting improper pressure on mail contractors and forcing them to carry mail at a loss, As you suggested, we contacted some of the mail contractors to determine the nature of their complaints. We found that most of the contractors' complaints fell into three problem categories: ~. --Financial administration of the contract, including the initial solicitation of bids and the contract cost adjustment system. --Contract performance monitoring by the Postal Service, including disciplinary actions taken against contractors. --Problems with the Department of Transportatio and the epar men o f - ostal Service officials said that when contract problems do arise, they try to resolve them according to the Contract General Provisior-s and in a manner as fair as possible to both parties. 4Zreview indicatee' that this is generally true. In the opinion of several transportation management officials we interviewed, some large contractors are experiencing problems because: --They lack sufficient management skill to operate a large business. IEiUM --They overextend themselves and their equipment by obtaining too many routes. GGD-79-30 (22489) 11111 109168 t.. 07-1 ,;o //_5 40

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