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B-160233 1 (1972-01-05)

handle is hein.gao/gaobaagqs0001 and id is 1 raw text is: _. o%715- COMPTROLLER GENERAL OF LI STAT WASHINGTON D. B-160233 JAN Dear Mr. Kemp: LM096715 (1 On February 23, 1971, you sent us information concerning -/ a proposed machine tool production control system and asked 2 that we determine whether Federal agencies (1) could use the /0, system to improve their management of public funds and (2) / would be forced to buy foreign-made machine tools if the U.S. machine tool industry cofftinffed to decline. Your office agreed to refer your first question to the I executive branch, specifically, the General Services Adminis- /7 tration and the Defense Supply Agency. Concerning the need /c7 to buy foreign-made machine tools, it was agreed that we would make inquiry of the Department of Defense (DOD), since < it buys more machine tools than any other Government agency, and would obtain statistics on its purchases of foreign ma- chine tools and the effect a declining industry would have on future purchases. According to a copy of a magazine article you sent us on June 30, 1971, the American metal-cutting industry could save billions of dollars annually if reliable machining data were available and properly applied. In an acco mpanygi lefter you asked us to consider what DOD might do to eliminate this problem, referred to as data lag. In summary, we obtained the following information. --DOD's machine tool purchases represented about 6 per- cent of domestic machine tool shipments. (See p. 3.) --Although statistics on DOD's purchases of foreign ma- chine tools were not available, such purchases did not appear to be extensive. (See p. 3.) --Domestic manufacturers may stop producing certain types of machine tools. In general, DOD is not buying these types now but may have to in case of mobiliza- tion. (See pp. 2 and 3.) 50TH ANNIVERSARY 1921-1970

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