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GGD-82-45 1 (1982-03-10)

handle is hein.gao/gaobabczo0001 and id is 1 raw text is: UNITEDSTATES GENERAL ACCOUNTING WASHINGTON, D.C. 20548 ,CE, ' GKNKRAL. GOVRNM Z!NT DIVISION B-114874 MARCH 10,1982 The Honorable S. William Green House of Representatives Dear Mr. Green: 117778 Subject: :Stamp Collecting Kits Bought By The U.S. Postal Service (GGD-82-45) Your March 23, 1981, letter requested GAO to investigate certain aspects of how the Postal Service solicits and awards contracts for stamp collecting kits. We have briefed your staff periodically during the past months on the status of this pro- curement. As agreed to with your staff, we have monitored the current stamp kit procurement activity through contract award, and this report concludes our work on this assignment. On January 27, 1982, the Service awarded Scott Publishing Company a 1 year, $1.8 million contract for producing 1.8 million stamp collecting kits (on 8 topical subjects). This award repre- sents the first in a series of planned annual procurements. As a result of our review, the Service made changes to improve the contract conditions and product specifications for producing stamp kits. The Service has redefined contract requirements, made this award more competitive, and we estimate has thereby saved $300,000. On March 16, 1981, the.Service issued a Request for Proposal (RFP) to produce (over a 5-year period) 5.4 million stamp col- lecting kits--4 specified topics (300,000 each) and 28 topics to be named later (150,000 each). Beginning in April 1981 we met with Service officials to discuss various contract conditions and product specifications in this RFP which appeared to unduly re- strict competition. The major problems discussed were: --Not soliciting the large philatelic firms for their bids. --Awarding the entire 5 years' (32 kits) production to a single supplier. (019004) 7 c' - 2 )

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