About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

B-173215 1 (1971-10-05)

handle is hein.gao/gaobablar0001 and id is 1 raw text is:        6L 'C16 5-6R     TRCTmD,.-: Not to be relpqa 0 Pi    n
                      Accounting Office except or  ba
                      by the Office of Legislat'is ke
                  _ CO PTRLLF. EEL OF THE U I STF.. J l,
          Vi ffi MEN0,=, -L 1 /:  , ,-
                               WASHIGTON.D.C. 20548

   B-173215         RELE AS ED                                      t

   Dear Mrs. Heckler:                                                7M0905960

        Pursuant to your request of June 4, 1971, we have re-
   viewed the Army and Air Force Exchange Service criteria for
- buying luggage and the methods it employs relating to competi-
   tive publTi-bidding. You have indicated that the buying
   practices ofi thEexchange service tend to foster a preferential
   brand approval for Samsonite and American Tourister luggage
   without regard for other highly qualified and financially re-
   sponsible firms, including the United States Luggage Corpora-
   tion, Fall River, Massachusetts.

        The exchange service obtains resale merchandise by negotia-
   tion, for the most part, on a limited-source basis and, for the
   remainder, on a competitive basis. Although the exchange ser-
   vice is an instrumentality of the Government, it operates with
   nonappropriated funds and is therefore not required to use for-
   mal advertising as prescribed by law. However, even the law
   applicable to appropriated funds (10 U.S.C. 2303(a) and 2304(a))
   permits negotiation where supplies are purchased for resale.

        To obtain luggage for stock, the exchange service head-
   quarters negotiates consolidated procurement contracts for its
   regions, or the regions separately negotiate contracts with
   vendors not under consolidated procurement contracts but ap-
   proved by exchange service headquarters. During 1970 consoli-
   dated procurement contracts for luggage accounted for $19.9 mil-
   lion of total procurement of $24.7 million.

        Manufacturers of Samsonite and American Tourister brands
   alone have been given an opportunity to negotiate consolidated
   procurement contracts for hardside and certain softside
   luggage. These luggage items account for the largest purchase
   volume.

        The purpose of the consolidated procurement program is to
   reduce procurement costs by consolidating worldwide require-
   ments. Selection of items for the consolidated procurement pro-
   gram is currently based on the following policy.





                        50TH ANNIVERSARY 1921-1971

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most