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PSAD-80-7 1 (1979-11-16)

handle is hein.gao/gaobaazxw0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 PROCUREMENT AND SYSTEMS ACQUISITION DIVISION B-178214 The Honorable H. D. Harvell Acting Commissioner Federal Supply Service I d332) liii General Services Administration D liii Dear Mr. Harvell: 110875 Subject: jReview of GSA's Method of _gPSAD-80-7) Supply Model(A ) On January 3, 1978, Mr. Robert P. Graham, who was then Commissioner, asked our Office to evaluate a model containing a series of mathematical equations that your Office of Programs and Requirements had developed. The model is to be used to help determine the most cost-effective way to provide com- monly used items, such as furniture, office supplies, and tools, to Federal agencies. BACKGROUND Federal agencies and executive offices fill their re- quirements for furniture, office supplies, tools, and other commonly used items in four ways. They receive the goods directly from warehouses of the Federal Supply Service (FSS) of the General Services Administration (GSA), arrange for FSS to purchase the goods for direct delivery from the sup- plier to the agency, buy directly from suppliers at prices and terms negotiated by FSS, or perform the entire procure- ment activity themselves. These four methods are referred to as stock, nonstock, schedules, and agency local purchase. Methods of supply For both the stock and nonstock methods of supply, FSS provides centralized contracting. FSS thus maintains records on orders, deliveries, and disbursements. The customer agen- cies requisition items from and pay FSS. For the schedules method, FSS negotiates contracts for items which customer agencies then order when needed directly from the contractor. 7 (950453)

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