About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

GGD-81-39 1 (1981-02-12)

handle is hein.gao/gaobabbnd0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE 4WASHINGTON, D.C. 20548 GCIrRAL GOV9ANMDINT DIVISION The Honorable William F. Bolger FEBRUARY 12,1981 Postmaster General United States Postal Service Dear Mr. Bolger: 111111111111111 Subject: 'Contract Conditions and 114324 Specifications Unduly Restricting Competition (GGD-81-39) This report is one of a series which will address restrictive conditions and specifications in Postal Service solicitations and contracts and their impact on Postal relationships with private industry, competition and cost. This particular report concerns the Postal Service's formally advertised fixed price contract number 104230-81-V-0300, which was awarded to Union Camp Corporation in November 1980. The contract totals $2.7 million for fiscal year 1981 production (an annual requirement) of 7.1 million corrugated mail trays and 1.6 million sleeves to cover these trays in transit. These units, in varying amounts, will be delivered to 26 postal locations scattered from coast to coast for use in shipping first-class letter mail by air. Union Camp was also the awardee on the prior three contracts for these items. 6O 0 As discussed below, Postal solicitations and resulting contracts contain conditions and product specifications which unduly restrict (1) the number'of eligible bidders and (2) the most efficient way an acceptable product can be made. 1. Limiting bidding to large firms. The solicitation permitted bidding only by firms which could furnish all production requirements to all postal regions located throughout the United States. This precludes well over 500 local firms from competing for this award. Only the few companies such as Union Camp which have plants throughout the country (seven Union Camp plants will be used on this contract) can hope to reduce overall freight costs to a competitive level. Since freight amounts to about 6 percent of overall contract costs and increases dramatically with distance, a single firm is unlikely to be able to compete on awards outside its area. S ..(019004)

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most