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092409 1 (1972-03-16)

handle is hein.gao/gaobacwhs0001 and id is 1 raw text is: P P 21 WI [UNITED STATES GENERAL ACCOUNTING OFFICE (Code 990592) WASHINGTON REGIONAL OFFICE FIFTH FLOOR 803 WEST ROAD STREET FALLS CHURCH, VIRGINIA 22046 MAR 16 1972 Mr. James D. Tilford, Jr. Tilford Flying Service Palm Beach International Airport LM092409 West Palm Beach, Florida 33406 Dear Mr. Tilford: Since our Atlanta representatives met with you last August, we have obtained certain additional information regarding the Government contract for aircraft fuel at Palm Beach International Airport which your letter of June 9, 1971, suggested we inquire into. In view of your interest in the matter, we thought it would be useful at this time to provide you with an up-to-date summary of facts and circumstances relating to the purpose and use of this contract. As a result of our further inquiries we have found that the contract at Palm Beach is one of a number of similar contracts awarded by the Defense Fuel Supply Center (DFSC) to serve loca- tions throughout the United States where mission requirements necessitate refueling military and other Government aircraft at commercial airports. These contracts, as opposed to open-market purchases, are advantageous to the Government because (1) they ensure the delivery of quality fuel under rigid technical and safety requirements that otherwise may not be observed at all airports and (2) they generally result in significant savings because of the larger quantities which result when various Government departments and agencies combine their requirements into a single procurement. The extent of these savings was recently demonstrated by an analysis of 42 DFSC contracts similar to and including the one at Palm Beach. This analysis showed that, for fiscal year 1972 requirements at 65 airports, the Government will realize savings of $3 million by using these contracts instead of buying fuel on the open market at prices posted at the airports. The rate of savings estimated for Palm beach is comparable to the average rate of savings estimated for all contract locations considered in the analysis. I Awk

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