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091308 1 (1976-02-09)

handle is hein.gao/gaobacwcp0001 and id is 1 raw text is: v' UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 GENERAL GOVERNMENT DIVISION Mr. Joseph P. Yeldell Director, Department of Human Resources District of Columbia Government FEB 9 1976 21 Dear Mr..Yeldell: Since February 1975, the General Accounting Office (GAO) has been assisting your staff in making improvements to your supply management program. This letter discusses problems GAO and your staff observed, and corrective actions taken or agreed upon by your staff. Your department is one of four selected for our study to determine (1) if the District would benefit from a more centrally managed supply system, and (2) how effectively and economically materials are pro- vided by individual departments. Although this letter dCls princially with the second objective, discussed below are afew observations Oin the status of District efforts to consolidate and centralize its supply management operations. CENTRALIZING CITY-WIDE SUPPLY MANAGEMENT GAO and other groups since 1912 have recommended that the District establish city-wide inventory control and centralize its supply manage- ment staff. The Nelsen Commission in 1972 was the most recent group to make such recommendations. The Commission estimated that consoli- dation and centralization of the District procurement and supply manage- ment system could save over $23 million, with annual recurring savings of over $12 million. The District's supply system is still organizationally decentralized. Each department has its own supply management procedures. Report on the Procurement and Supply System for the Government of the District of Columbia, issued August 1972. (~r~3a 10c: 3 1309o

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