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PLRD-82-104 1 (1982-08-02)

handle is hein.gao/gaobabmmu0001 and id is 1 raw text is: 

                     UNITED STATES GENERAL ACCOUNTING OFFICE    I 1//
                            WASHINGTON, D.C. 20548


PROCUREMCNT. L.OGIr0S'1.
AMD RLADINC DIIIO
                                            August 2, 1982
 B-207831

 The Honorable Joseph P. Addabbo
 House of RepresentativesI Ilii
 Dear Mr. Addabbo:                             119143

      Subject: SBA's Breakout Efforts Increase Competitive
                Procurements at Air Logistics Centersi
                (GAO/PLRD-82-104)

      Your August 26, 1981, letter asked us to conduct an indepth
 review of areas within the Department of Defense acquisition system
 in which a technique called breakout can be used more extensively
 to encourage greater competition. You also asked us to observe the
 Small Business Administration's (SBA's) breakout Procurement Center
 Representative (PCR) specialist's efforts in seeking new competi-
 tive contracting opportunities. Component breakout occurs when a
 component used in the manufacture, modification, or repair of an
 efid item, which was provided initially under a prime contract, is
 later purchased by the Government through either competition or
 direct purchase from the actual manufacturer. This letter contains
 the results of our review of SBA breakout efforts at Air Force air
 logistics centers (ALCs). We plan during future audits to assess
 the potential for breakout in other DOD procurement organizations.

      In summary, we found that SBA is making a contribution
 toward breaking out parts for competition, but opportunities exist
 to improve the effectiveness of the spare parts breakout program
 and to realize even greater breakout accomplishments.

 BAC KGROUND

      To implement the Small Business Act, as amended, SBA has
 assigned PCRs to 52 Federal acquisition centers. Their major
 function is to maximize potential opportunities for small busi-
 nesses to obtain Defense contracts. In late 1979 SBA initiated a
 pilot program to increase these efforts by adding a breakout PCR
 position at three ALCs--Oklahoma City, San Antonio, and Warner
 Robins. The Ogden ALC does not have a breakout PCR specialist but
 was included In our review because the regular PCR was reporting
 substantial breakout efforts.

      In 1969 Defense established a High Dollar Spare Parts Breakout
 Program to determine the optimum procurement strategy for
 replenishment spare parts by either increasing competition or

                                                           (942092)


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