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093031 1 (1971-02-23)

handle is hein.gao/gaobacwxg0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 DEFENSE DIVISION FEB 23 in Commanding General, Air Force Logistics Command LIMo93a1 Wright-Patterson Air Force Base, Ohio 45433 Attention: MCIML BEST DOCUMENT AVAILABLE Dear Sir: Since July 1966, the Air Force has negotiated at least four contracts for remanufacture of snow removal equipment. The four contracts negotiated with thezOshkosh Truck Corporation, Oshkosh, Wisconsin, were Fo9603-67-D-0003, F09603-67-D-0099, F09603-69-D- O002, and F09603-70-D-1210. These contracts were issued by the Warner Robins Air Materiel Area and were administered by the efense Contract Administration Service. All contracts were nego- tiated fixed price. The contract prices included costs to replace nonserviceable tires, and the contractor usually installed a complete set of new tires on each remanufactured vehicle. We believe substantial savings are possible if rebuilt tires are used for this purpose rather than new ones. To the extent tires cannot be rebuilt, some savings can still be realized if new tires are obtained through the General Services Administration Federal Supply Schedule rather than through the contractor. In order to demonstrate the savings which can be realized, we compared the prices paid for new tires under contract F09603-69-D- 0002 with the prices shown in the Federal Supply Schedule for both rebuilt and new tires. The contract authorized the purchase of 608 new tires for $173,930. SAVINGS POSSIBLE BY USING REBUILT TIRES Our review showed that had rebuilt tires been used instead of new tires, $137,000 would have been saved. Prices for rebuilding tires as shown in the Federal Supply Schedule are substantially lower than the prices for the 608 new tires. Differences range from about $126 to $244 a tire depending on size. Rebuilding services are offered by four companies less than 85 miles from the contractor. 50TH ANNIVERSARY 1921-1971o3O3 1

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