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092602 1 (1971-07-09)

handle is hein.gao/gaobacwma0001 and id is 1 raw text is: UNITED STj G ENERAL AccoUNTING OFFICE REGIONAL OFFICE ROOM 1800 FEDERAL OFFICE BUILDING 911 WALNUT STREET KANSAS CITY, MISSOURI 64106 July 9, 1971 Colonel Seymour Stearns Commander Defense Commercial Communications Office Scott Air Force Base, Illinois 62225 Dear Colonel Stearns: This letter is a summary of the 60porbunities for reducing costs which our staff has discussed with you and other personnel of the Defense tommercial Communications Office (DECCO). Briefly, the staff observed that costs could be reduced through: --avoidance of interstate routing of intrastate services, --improved evaluations of competitive quotations, --re-evaluation of service contracts when changes occur in tariffs or policies of carriers, --avoidance of polarl operation charges, where feasible, --use of Telpak application in lieu of certain higher cost local chapnel and interexchange services, and --use of Government-financed facilities where practicable. Details concerning these matters follow. ROUTORG OF INTASTATE SERVICES Circuits were,being routed interstate in the Telpak2 network when they could be routed intrastate. This increases the cost of services because charges associated with interstate circuits are usually higher than those for intrastate circuits. Although conditions may require that circuiLs be initially routed or rerouted interstate, conditions often change so that intrastate routing can be used. But there were no established procedures in DECCO for re-examining circuit routing. The benefits from re-examining the routings are demonstrated by circuit SB 30P 01206 which was being leased to provide service between Eglin, MacDill, and Homestead Air Force Bases, all in Florida. For several years the circuit 1Polar operation is the use of directional current to transmit telegraph signals thereby providing quality service between terminals. 2Telpak is an industry term for reduced pricing arrangement offered to users leasing quantities of circuits between rate centers. 50TH ANNIVERSARY 1921-1971

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