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GGD-81-99 1 (1981-09-23)

handle is hein.gao/gaobabcnq0001 and id is 1 raw text is: 0 1, UrITru-) STATES CENFRAL ACCOUNTING OFFICE WAS IINGIO;, D .C.,,20548 Wr7NEFIAI. G ,V L,; 0 4 EN T tAIV5IION SEP 931 Mr. Robert L. Ely Director, Office of Contracts Procurement and Supply Department i16641 United States Postal Service Dear Mr. Ely: Subject: Procurement Costs of General Purpose Mail Containers Can Be Reduced (GGD-81-99) This report is one of a series originating fronm our review of restrictive conditions and specifications in Postal Service solicitations an(! contracts and their imoact on competition, cosL, and the Service's relationships with private industry. This par- ticular report concerns the Service's f.-rmally advertised, fixed price contzacts n-m bered 104230-80-V-23%i4,-5, and -6, for General Purpose Mail Cotainers and Shelf Inserts. The companies which bid on or requested the solicitation for these containers were generally pleased with it and they did not identify any unduly restrictive conditions or specifications. However, there is one matter regarding transportation costs which we would like to bring to your attention. The contracts for these containers -)ere awarded in September 1980 to Bonus-Bilt, Inc. (Glendale, California), Soder Steel Products, (Martin, Tennessee), and Bathey Manufacturing Company (PlymouLh, Michigan), respectively. These contracts totaled about $9 millior for 47,315 containers and 12,102 shelf inserts to meet the Seriice's fiscal years 1980 and 1981 requirements. These containers, in varying amounts, will be delivered national- ly to 168 locations for use in transporting mail within and be- tween facilities. The primary functions of the containers are to reduce the number of mail handlings, accel.erate truck loading and unloading, and increase vehicle cube utilization. Because so many containers were needed for the 2 fiscal years, it was de- cided to have four separate awards covering requirements for four Service regions (see cnc. 1). TR7\NSPOPRTATION COSTS CAN BE REDUCED Several manufacturers located throuqIhout the U.S. bid on this . .olicitation. Most n m on 1.1 four requirements . To deter- mine t1-a lowest total co. t, the Sorivice addiod an estii,*ited trans- portation cost to the five 1.ov,'ost h iddCr!s on each ax.r. S ,,,7 (.1 (1o 1i< )

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