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089469 1 (1975-01-09)

handle is hein.gao/gaobacvme0001 and id is 1 raw text is: UNITED STATES GENERAL AccoUNTING OFFICE WASHINGTON, D C 20548 GENERAL GOVERNMENT DIVISION U11 %1 Mr. Robert H. McCutcheon Assistant Postmaster General Procurement and Supply Department U. S. Postal Service Dear Mr. McCutcheon* The General Accounting Office has completed a survey of the pro- curement of supplies, services, and supportive equipment in the Central Region of the U. S. Postal Service. The purpose of this letter is to apprise you of our findings. The quality of procurement operations varied considerably between the locations we visited. Causes for this appeared to be --lack of trained procurement personnel, --use of personal judgment instead of following established procurement procedures, and --lack of monitoring by Postal Service management. Specific problems disclosed by our survey were --numerous commercial purchases of small dollar items that could have been obtained from established govern- mental sources at considerable savings. --frequent sole-source procurement for commercial purchases over $250 although the Postal Contracting Manual requires that competition be obtained for such purchases. The details of our observations are set forth below SAVINGS AVAILABLE THROUGH INCREASED USE OF ESTABLISHED GOVERNMENTAL SOURCES The Postal Service is purchasing numerous small dollar items from commercial sources although Federal and Postal Service procurement policies and regulations provide that established governmental sources should receive first pr ocurement consideration Examples of common

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