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B-164630 1 (1973-05-02)

handle is hein.gao/gaobabkil0001 and id is 1 raw text is:            '-4          --



                             WASHINGTON. D.C. 20848



   B- 1646 30                                       MY21

   The Honorable William Proxmire
/-i United States Senate

_ Dear Senator Proxmire :
        )  Your letter of February 16, 1973, requested that we review
   the Olivetti Corporation's ch.ges, t hat theo Na.vy- is violating
   (GSA) regulations by purchas-
   ing IBM Qpticai Character Recogniti on (OCR) typ~ewri ters.

        GSA's Federal Property Management Regulation 101-26-408-2
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    the lowest price equipment available.  Olivetti claims that
    its OCR typewritrsmeetal       RTrqui rements and is lower in
    price than the IBM-OCR typewriters. You expressed concern as
    to whether the Government was pzncuxig equipment that meets
    regulations at the lowest possible cost, regardless of sup-
    plier.
        In response to your request, we have obtained the follow-
   ing information.
   OCR TYPE.WRITE.RS

        OCR typewriters eliminate the need to convert information
   into punchcards or tapes before computer processing, because
   their print does not have to be translated for electronic
   scanning equipment.
        Most IBM typewriters have interchangeable type elements
   and can be used for OCR, general office, speech, viewgraph,
   and various technical typing. Because Olivetti typewriters
   are conventional typewriters and do not have interchangeable
   type elements, they are limited to OCR typing.
   FE.DERAL SUPPLY SCHEDULE. CONTRACTS
        GSA awards contracts for typewriters to various manufac-
   turers and lists on Federal Supply Schedules their contracts,
   products, and services.  The Department of Defense must pur-
   chase only those typewriters on the Schedules.
        Under this system, GSA generally negotiates discounts
   from the basic catalog prices of numerous manufacturers and

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