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112926 1 (1980-07-25)

handle is hein.gao/gaobacxte0001 and id is 1 raw text is: UN1Di STVrES EE L ; A C 6 U, C. O F 11 ICM NT I , CO OI I JUL2 51J MWr 14S COrNfri te in .0 Administrator, Food and Nutrj tion S erv ice U.S. Department of Agriculture 112926 Dear Mr. Greenstein: The purpose of this letter is to suggest ways to explor' reduced cost and increased competition for printing food stamp coupons7 We understand that the Department of Agriculture's soliclT'ation for 1981 requirements is expected to be released soon. In this connection, we offer the following matters for your consideration. Historically, the Federal Government has sought to mini- ize the risk of counterfeiting food coupons by specifying a relatively sophisticated and high cost printing process that provides a high level of coupon security but offers limited opportunity for competition. Food coupons are not reused like currency and it is our understanding, based on discus- sions with Secret Service officials, that counterfeiting has not been a profitable undertaking or a serious enforcement problem for the Government. According to the Secret Service, redemptions of counterfeit coupons have averaged about $6,000 annually over the past 8 years. However, the actual amount of coupons counterfeited is higher because substantial amounts of counterfeit coupons are confiscated before they enter the redemption process. We are not sure whether some may escape detection entirely. The Secret Service told us that, from its standpoint, an alternate printing process would be acceptable as long as security needs are met and the alternative offers sufficient savings on printing costs to offset potential counterfeiting risk. According to Government Printing Office officials, such savings could be 30 percent or more of the present coupon printing cost. In this regard, we note that a recent decision has been made by the Government to use a lower cost multicolor lithographic process to print gas rationing coupons. 4CC1~ oos-' 1q. COgL .0 4

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