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B-113272-O.M. 1 (1953-05-21)

handle is hein.gao/gaobadqjj0001 and id is 1 raw text is: 


                      GENERAL ACCOUNTING OFFICE
                             WASHINGTON 25


DIVISION OF AUDITS


         95 Go rtroller Genera:


              n)ur urvey of the fi nncial    eations of the Post
         Office Deart   nt has disclosed expenditues in excess of
         10ouits autrilzed .y the    ngress to be us     x clusively
         for the  urcnase of tcks, trators an        trailers, pir-
         .ant to the 1952 aropriation for postal operations.

              The ?oat Office eepartient Appropriation Act, 1952,
         7uolla Law Il, appove     Auautl l, 1951, contains an taro-
         siation for postal operationa, including a provision:
         s** $11,579,000 to be a      i!able   lusively for the pur-
         c ase of trucls, tractr   and trailers **
              .he  eartment on      Ast 27, 1951, allottad $I,59,
         for the purchase of vehiiles an       )rders ere placed vith Gen-
         eral Servtces Administration for 5,925 trucks, 00 tractors
         ad 10 trailers. General Se2ves Adnstration awaed
         contracts to the lowest bidders an     resentc ±ioices to
         the Departnt in the a     rate    ant of $11,579,333.     The
         neral provisions incoported in the contracts provide in
         Section 10 (e) for an inease in the contract rice in the
         nt off a   ition    taxes imposed an the   anuac tuer s :-
         sequent to the      t   dte.    As a result of- an increase i
                                                           v 1
         the  anfacuers' excise tax effective Aeeier 1, 1951, ai
         auth   zed by the     e   Act of 1051, a   Ttloa! obliatio   s
         off $307,933 av  been incure, increaigthe total obliga-
         tions to 41,3,32        or 40,321 in excess off te aL   t
         specifed in the a      riation act 'to be a    lale exclu-
         sively for the purhae of trucks, tractors and trailers.

              leislatve hist          of the cuen     app riation
         limitation  as its originn Ithe vehicle r     ace et
         o      zaton prof the Dartent which                  as b in
         i917.    Upndeivery of th~e vehcles covered by the contracts
         awared inth    fisa   year 1952, the vhcle midernization
         pro gr1will have been cioplted.      This progra provided for
         the relao mnt of all over-age trucks and the eXpasion of
         the Gove  nnt-o wne  vehicle service,
              ginnin     with the fiscal yeja 193( the    et estites
         and Justifications     ittd by the Da       nt state    the
         tuck prnt pog ram in quantitative and i              eta y ter=s,

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