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094441 1 (1971-01-19)

handle is hein.gao/gaobadxky0001 and id is 1 raw text is: 




               United States General Accounting Office
                       Washington, D.C. 20548


                                          For Release on Delivery
                                          Expected at 10 AM EST
                                          January 19, 1971


                            STATEMENT OF
      ELMER B. STAATS, COMPTROLLER GENERAL OF THE UNITED STATES
                             BEFORE THE
                        MONOPOLY SUBCOMMITTEE
                 SELECT COMMITTEE ON SMALL BUSINESS
                        UNITED STATES SENATE
                                 ON
            DRUG PROCUREMENT SYSTEMS OF FEDERAL AGENCIES


         Mr. Chairman and Members of the Subcommittee, I am
    pleased to appear here today in response to your request to
    discuss the drug procurement systems of Federal agencies.
         As you requested, we plan to discuss the efficacy, econ-
    omy, and rationality in the drug procurement activities of
    the Federal Government. Specifically you asked that we dis-
    cuss the methods of procurement, the degree of competition
    obtained, participation by small business and the use of sec-
    tion 1498, of title 28 of the United States Code to procure
    drugs covered by patents.
         Our discussion today will focus upon the systems through
    which the Federal Government directly procures drugs from
    manufacturers and other suppliers. We would like to mention,
    however, that since our last appearance before this Subcom-
4.  mittee in May 1967, we have conducted reviews of and issued
    reports on other aspects of the Government's drug-related




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