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092694 1 (1969-07-15)

handle is hein.gao/gaobacwoi0001 and id is 1 raw text is: M UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C. 20548 CIVIL DIVISION JUL 1,-5 1969 ,Z)) Dear General Graham: <C> 6 This letter is to inform you that we have completed our survey of selected aspects of the administration of the Wash- n ogton Metropolltan Area Transit Authority (ATA) and th'Et Y we believe WMATA can achieve savings by making changes in its. telephone service. , PROCUREMENT OF TELEPHONE SERVICES WMATA has been purchasing commercial telephone service from the Chesapeake and Potomac Telenhone Company at an aver- age monthly cost of $2,508. We estimated that similar tele- phone service, supplied by the Federal Telecommunications System (FTS) would cost approximatly hi,052 a month. WHATA acted on our suggestion that it inquire into the availability of FTS service and, by letter dated March 24, 1969, GSA ad- vised WMATA that FTS service could be provided by early 1970. If the conversion of service to FTS is completed during January 1970, an estimated $59,000 may be saved between then and June 14, 1973, when the lease for WMATA's present office space expires. This saving is estimated on the basis that the Chesapeake and Potomac Telephone Company will waive its con- tract rights to a termination penalty, which would have a balance of about $11,000 as of January 1970. Without waiver of the penalty termination clause, the savings is reduced to about $48,000, On the basis of indicated savings through FTS telephone service at the present location, savings may also be real- izable at the permanent quarters to be occupied in 1973 on Judiciary Square; we suggest that FTS service be continued at Judiciary Square, if savings can be realized.

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