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089479 1 (1974-04-23)

handle is hein.gao/gaobacvmo0001 and id is 1 raw text is: 



               UNITED STATES GENERAL  ACCOUNTING OFFICE
                            REGIONAL OFFICE
                        ROOM 201 415 FIRST AVENUE NORTH
                        SEATTLE, WASHINGTON 98109



                                                   APR 2 3 1974
Mr. T. A. Schlapfer
Regional Forester
Pacific Northwest Region
319 Southwest Pine Street
P.O. Box 3623
Portlad,  Oregon  97208

Dear Mr. Schlapfer:

     We recently completed a survey of the procurement of parts for
commercial-type vehicles by several Federal agencies.  Since we do
not plan further work on such procurements at the Forest Service,
we would like to point out certain opportunities for savings which
are within your authority to achieve.  These matters have been
discussed with your staff.

     We found that Federal agencies were procuring repair parts from
a multitude of suppliers under various methods of procurement.  This
resulted in substantially varying prices for the parts.  Some procuring
activities were attempting to consolidate their volume in order to
achieve more favorable discounts, while others were purchasing on
an item-by-item basis.  In no cases, however, did we find that pro-
curing activities were consolidating their volumes with other procuring
activities to negotiate better prices.  As a result of this  fragmented
procurement, local agencies were not taking advantage of the potential
discounts available through volume procurement.

     We examined the prices paid for automotive parts by the Forest
Service, Atomic Energy Commission, Richland, Washington; and the
five agencies in the Seattle/Tacoma area maintaining the largest
vehicle repair facilities.  The activities included  the Fort Lewis
Motor Pool, General Services Administration Motor Pool, Seattle District
Postal Service, McChord Air Force Base, and Puget Sound Naval  Shipyard
(PSNS)   At each location, we compared prices of replacement parts for
general-purpose vehicles manufactured by Ford, Chrysler, General Motors,
American Motors, and International Harvester.

     Automotive replacement parts can be classified  into two categories--
original equipment manufacturer's  (OEM) parts and alternate parts. OEM
parts are sold by the vehicle manufacturer and its dealers.  Alternate
parts are sold under different brand names and price lists  than those

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