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NSIAD-84-143 1 (1984-08-20)

handle is hein.gao/gaobabnli0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE I WASHINGTON, D.C. 20548 AUG 2 0 1984 NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIVISION B-215130 jI liINI General Richard H. Thompson 124973 Commander, U.S. Army Materiel Command 5001 Eisenhower Avenue Alexandria, Virginia 22333 Dear General Thompson: Subject: Added Emphasis on Consolidation of Multiple Purchase Requests Could Result in Significant Savings (GAO/NSIAD-84-143) We reviewed the potential for consolidating multiple procurements at the Army Troop Support and Aviation Materiel Readiness Command (TSARCOM) (recently reorganized as the Army Aviation Systems Command (AVSCOM) and the Army Troop Support Command (TROSCOM)) and at the Army Tank Automotive Command (TACOM). This review was undertaken because of our interest in the efficiency of the military's use of increased funding for force modernization and because of recent emphasis on spare parts procurement. Our specific objectives, scope, methodology, and findings are presented in the enclosure. In summary, the activities reviewed were not consolidating procurements to the maximum extent feasible. Multiple procurement actions were processed concurrently for identical items, and frequently these actions were placed on separate contracts at different prices. About 23 percent of the 194 procurement actions sampled could have been combined with other purchases of the same items to obtain lower unit prices. Consolidating these actions would have saved an estimated $1.6 million, or 13 percent of the dollars awarded on our sampled contracts. Further, about 13 percent of the contracts could have been eliminated, thereby reducing procurement work load. In our opinion, maximum consolidation was not achieved because of the overemphasis by buyers on minimizing the time required to process each purchase request and a lack of aggres- sive action to match follow-on requests with similar requests for items not yet procured. We also believe a local procurement directive at TACOM had the effect of discouraging consolidation in instances where purchase requests were dated 30 days or more apart. (942233)

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