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092672 1 (1969-12-29)

handle is hein.gao/gaobacwnl0001 and id is 1 raw text is: 


L

                      UNITED  STATES GENERAL ACCOUNTING  OFFICE
                                WASHINGTON,  D.C. 20548

 CLVIL DIVISION
                                                             DEC 2 9 1969



                                                                  LM092672

      Dear Mr. Conden:

           We have made a review of the procurement of paper by the  Department
      of Housing and Urban Development (HUD) for use in its Xerox copiers.  Our
      review was  sde pursuant to the Sudget and tuditiag Act,  1921 (31 U.S.C.
      53), and the Accounting and Auditing Act of  1950 (31 U.S.C. 67), and, for
      the mset part, was perfomed  at MUD headquarters  In Washington, 0. C.

           Wa believe that worthwhile savings can be achieved by HUD  through use
      of more economical paper to its Xerox copiers than the type presently  being
      used,  We estimate that savings at HUD headquarters could amount  to as much
      as $10,000 a year, depending on the type of substitute paper  selected and
      the quantities purchased.  Additional annual savings are possible  at H0D's
      regional offices and insuring offices.

           Our review of purchase orders covering procurements at HUD headquarters
      in fiscal year 1969 showed that a total of 22,500  reams of Xerox 4024 paper
      was purchased during the year, including 20,400 reams of  letter-sie  paper
      and 2,100 reams of legal-aise paper.  Depending on  the size of the order
      placed with the Xerox Corporation, the cost of  the letter-ste paper  ranged
      from $1.00 to #1.04 a ream and the cost of the  legal-site paper ranged from
      $1.41 to $1.48 a ream. 2

           Our inquiries at the Department of Agriculture and  the Post Office
      Department disclosed that these departmentS use  less expensive paper in
      their Xerox copiers.  A procurement official at the  Department of Agricul.
      ture advised us that his department uses bond paper  purchased from the
      General Services Admtnistration (GSA) at a cost of 4.62 a  ream for letter. coon
      size paper and $.80 a ream for  Legalste  paper.  A Rost Office  Depart.
      ment official intormed us that his department uses paper purchased  from the
      Government Printing Office (090) at a cost of $.70 a  ream for letter-size
      and $1.14-1/2 a ream for legal.asisa.

           UD  officials told us that they preferred to  use Xerox paper because
      it caused less frequent jamming  in the copier machines than the less expenr.
      aive paper.  Officials of the Post office  Department and the Department of
      Agriculture stated that, while the  less expensive paper used by their

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