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B-171594 1 (1973-07-19)

handle is hein.gao/gaobabjhp0001 and id is 1 raw text is: I_1m C1D -Not to e rO tliesed outside thme Ouweual l aa eounting Office except ov tho basis of spgowf apprevelI Aby the Office of Legislative Liaison, a record of whisk is kept 01SP~o sbiecstions Brancb, OAS '. .7 by t 'r l RO LEGENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 B-171594088650 B-171594 R SJUL 19 1973 The Honorable Thaddeus J. Dulski Chairman, Committee on Post Office and Civil Service House of Representatives [0S. 6-% eOtC y& - P- Dear Mr. Chairman: S/8aC lq Ay Ala Your letter dated March 12, 1973, requested that we prepa-re a detailed report on the $18 million contract awarded by the U.S. Postal Service to the Blount Brothers Corporation for constructing a bulk-mail facility in Des Moines, Iowa. You asked that our report contain (1) the prequalifying guidelines used by both the Postal Service and the Corps of Engineers, Department of the Army, (2) the bidding procedure, (3) the number of bidders, their names, and the amounts bid by each, (4) the reason the contract was awarded to the corporation, and (5) a copy of the contract. You also requested our opinion as to whether section 207 of title 18, United States Code, applied to the Postal Service and, if so, whether there was a violation of that law with respect to the contract award. BACKGROUND On March 11, 1971, Postmaster General Winton 1. Blount, who was Postmaster General from January 1969 through Octo- ber 1971, announced that the Postal Service would establish a National Bulk Mail System (NBMS) consisting of 21 bulk- mail facilities (BMFs) and 12 auxiliary service facilities specifically designed to handle bulk mail. (See enc. I.) The Postmaster General announced that one of the BHFs would be in the Des Moines area. These facilities will process only bulk mail, such as parcels, sacks of nonpreferential second-class mail (weekly magazines and newspapers), and third-class mail (advertising circulars). Preferential mail (letters) will be processed in separate facilities. The Postal Service said that NBMS would (1) use modern machine-sorting techniques to process bulk mail, (2) enable the massing of mail for long-distance transportation, 9/3633

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