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089441 1 (1969-08-15)

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UNITED STATES GENERAL  ACCOUNTING  OFFICE


CIVIL DIVISION


AUG  1 51969


Dear Mr. Sampson

     The General Accounting Office has examined into the procurement
of wiping rags and certain soap products by the Federal Su  1  Service
for its stores stock program.  Our examination was performed primariy-
at the FSS Central Office, Arlington, Virginia, and Region 5, Chicago,
Illinois.

     Our examination showed that it was FSS policy to either increase
or decrease the invoiced amounts payable for reclaimed cotton wiping
rags and certain soap products on the basis of tested moisture content
of the products received.  In January 1967, we discussed with FSS Cen-
tral Office officials the necessity of increasing the invoiced amounts,
known as premium payments.  Subsequently, FSS revised the Federal spec-
ification for cotton wiping rags to eliminate the premium payments.

     We noted that FSS had not made a similar revision of the Federal
specifications for soap products.  We believe that the cost of soap
products to the Federal Government can be reduced by revision of FSS
specifications to provide for the elimination of premium payments for
moisture content.  We suggest that FSS consider the feasibility of
the revision.


     We appreciate the cooperation given to our
the examination.  We will be pleased to discuss
letter with you or your staff, if desired.


representatives during
the subject of this


Sincerely yours,


V.  L. Hill

V. L. Hill
Assistant Director


Mr. Arthur F. Sampson, Commissioner
Federal Supply Service
General Services Administration


WASHINGTON,  D.C. 20548


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