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PLRD-82-55 1 (1982-03-19)

handle is hein.gao/gaobabddi0001 and id is 1 raw text is: N / i,< .4. / UNITED STATES GENERAL ACCOUNTING OFFICE I lit 10-0 WASHINGTON, D.C. 20548 PI[MI[?4T. tG rwrfics, AND ORADINU DIVICSON ,ETRC - by the Oiffie of ; ,Q ,t , ',,'C B-205717 RELEASED MARCH 19,1982 The Honorable William V. Roth, Jr. Chairman, Permanent Subcommittee on Investigations Committee on Governmental Affairs United States Senate Dear Mr. Chairman: Subject: /Review of Prices Paid by Military Commissaries on Brand Namp Vendor Supply Bulletin Contracts (PLRD-82-55) On October 19, 1981, you requested our assistance in audit- ing brand name vendor supply bulletin contracts. These are annual indefinite quantity contracts negotiated by the Defense Personnel Support Center, the Federal contracting activity for military commissaries. The commissaries use these contracts to purchase grocery items from vendors at prices that are sup- posed to be as advantageous as those offered commercial customers. Specifically, you asked us to determine whether vendors were complying with the price reduction clause, which states that when a vendor reduces prices to commercial customers, the commissaries should receive the same reduction. We audited six vendors to determine if commissaries were obtaining prices comparable to commercial customers. We found some price discrepancies at four of these vendors where commissaries paid more for grocery items than other customers. We also found that vendors made allowances, financially beneficial to commis- saries, which were not available to commercial customers. Never- theless, the price discrepancies we found were not necessarily indications of vendor noncompliance with the price warranty pro- visions in brand name vendor supply bulletin contracts. We dis- cussed our observations with your Office on December 16, 1981, and it was agreed that we should discontinue our review. Some vendors provided us with proprietary data. To prevent this report from being restricted, as provided by 18 U.S.C. 1905, we have excluded all references to individual companies, brand names, and products. 51 )~(942093)

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