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093872 1 (1973-03-15)

handle is hein.gao/gaobacxhj0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON REGIONAL OFFICE FIFTH FLOOR 803 WEST BROAD S*TREET FALLS CHURCH, VIRGINIA 22046 MAR 1 5 1973 Lieutenant General Wallace H. Robinson, Jr. Director, Defense Supply Agency Cameron Station Alexandria, Virginia 22314 Attention DSAH-CM Dear General Robinson The General Accounting Office has recently completed a review of the procurement practices and procedures of the Defense Fuel Supply Center (DFSC), Defense Supply Agency. Our review was primarily directed at DFSC's methods in contracting for motor gasoline and fuel 6i1 for civil and military installations in the United States. Our review disclosed that DFSC is generally carrying out its respon- sibilities in a satisfactory manner. We believe, however, that the oppor- tunity exists to reduce prices and improve contracting effectiveness by consolidating requirements by geographical areas In December 1972 we discussed this matter with Rear Admiral William M. Oller, Commander, DFSC, Colonel Pobert K. Estes, Director of Procurement and Production, DFSC, and Mr. L. E. Smith, Deputy Director of Procuiement and Production. We were told that studies would be undertaken by DFSC to determine the feasibility of our suggestions. Details on this matter are presented below for your information. Under the procedures used by DFSC, individual requests of Government agencies and installations for contractual coverage of petroleum products are listed on the appropriate regional solicitation in essentially the same format as received. No attempt is made to group or combine the requirements of different users for the same product into a single Govern- ment requirement. Each individual requirement is solicited,and contracts are awarded separately without regard to the prices obtained for other requirements for the product in the area or to whether responsive bids were received in every case. Our review disclosed that contractors' bids on the same product required by different agencies in the same area are not always at the same price and tlat bids submitted for the larger individual requirements were generally lower than bids submitted ior smaller requirements. This suggests that better prices might be obtained if the requirements of caQl~ ~ .m

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