Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-09-03
IN THE OPEN MARKET
PURCHASES THUS MADE UNDER
INVESTIGATION.
Property Clerk Directed to Submit
acquisitions for Supphes-Mr.
Vests Inquiries.

Commissioner West has directed Property
Clerk Beckett to submit to him. for his
! approval, all acquisitions for purchases in
| open market from departments within his
1uridiction. pending the action of the
Commissioners. on Mr.. Vests recommen-
dalton that hereafter all acquisitions for
purchases in open market shall be approved
by them. Mr.. Vests action is taken as
a direct result Of the inquiry he has been
making into the methods Of purchasing
supplies for the District, and by means OF
which, 1t is said, he has made some star
| Ting discoveries.
Heretofore purchases in open market
have been made on the reQuisition Of the
| head Of a department by the property
| clerk Of the District, and, 1t Is stated. the
| Commissioners were not always informed
as to just what was being done. Through
| these methods the District has been paying
from 10 per cent to 20 per cent more for
its supplies than the other government de-
| partments. Mr.. West desires to put a
| stop to this manner Of doing business. and
| his order. which was sent out today, Is the
first positive step he has taken since his
| recommendation to his colleagues that ell
| acquisitions be submitted to them for ap-
| prevail
The Commissioners have not acted on
| this recommendation as yet, for the reason
| wrong the District has gone on the ex-
| penditures OF the past, SO that the order
| that will be framed will cover the ground
| completely and leave no loOphOle through
| can creep.
Extent Of the Purchases.
As has been explained heretofore. the
| purchases of the District through open
| market have been about 90 per cent Of the
| total amount of supplies purchased. This
means that without form Of contract more
than half Of the articles used in the daily
business Of the District have been pur-
| chased outright from dealers selected for
the purpose by the property clerk. The
discovery Of the wide disparity in the
| prices that are paid under this system for
| various articles led the inquiry of the
| Commissioners into the subject with the
| results that have been stated
| To those not familiar with the system the
| usual method OF purchasing supplies by the
! various government offices Is by contract
| with the dealer. At the beginning of each
| hscal year specifications are prepared in
| the department of the needs Of the various
bureaus and offices for the next year, the
| calculations being based on the consump-
| ton during the years previous and an esti-
mate OF the increase that will be needed to
carry on the increased business Of the yari-
Gus offices.
When these specifications have been pre-
pared an advertisement is prepared by the
chief clerk or some one designated by him.
IN which statement Is made that the de-
partment in question will receive sealed
proposals up to a certain hour on a certain
day for the supply Of the articles named in
the list. This advertisement is usually in
serted four or five times, sometimes as much
as thirty times. in the newspapers and is
posted in conspicuous places about the office
to which 1t relates. In this manner all per-
sons dealing in the articles desired by the
dam tv,,av r,ot{R 81 u t.
ed and when the bids must be in. The bids
are usually opened by a committee of dis
interested persons and the amounts COM
pared. In this manner every person who
deals In the goods wanted has a chance to
present bid to supply the department, and
every person who thus presents bid will,
1t Is conceded, place the cost of the articles
named at the lowest possible figure in order
that his bid may be accepted.
The Lowest Bidders.
The contract Is awarded to the person
making the lowest bid. whose goods con-
form to the standard Of tho department.
When the contract ia awarded the contrac-
tor 10 required to furnish bond, In q sum
named by the head Of the department, for
the faithful performance of the contract. IT.
for any reason. the contract Ii abrogated, the
department promptly forecloses on the bond
and makes good whatever loss it may have
incurred through the failure Of the con-
tractor.
bids are called for naturally gives the de-
partment the article 1t desires at the low
est possible price, and also protects the
person empowered with the authority to
make the contracts, in that 1t prevents
absolutely any collision between the bid
ders and the department officials. for the
benefit of the latter, except IN the most
remote cases.
N do
in the same manner by some of the gov
eminent departments. That Is. the de-
partment notifies all persons dealing in the
particular article wanted that such an
article will be purchased by the depart
ment, and they are all invited to put In
bids. There are no contracts made. The
article needed is purchased outright. 1t
has been the rule in most Of the depart
ments to restrict purchases in open market
to such articles as are needed immediately
and the need Of whiC h the department Off
Gals could not foresee at the time con-
tracts were made Articles purchased in
open market are usually in small Quanti-
ties, sometimes single articles.
The District, however. has evidently not
open market to the minimum 1t has thus
purchased more than half of its supplies
and some of these things, 1t is stated have
been articles Of known necessity which
could be included in the contracts easily
and without detriment to the District serv-
Ice BY including such articles in the con-
tracts the District could secure a lower
price. as is shown by the purchase of type
writer ribbons for the machines in the Of
fee. The stimulating influence Of the com
petition for large contract has not 1t is
stated, entered into the equation at any
stage of the proceedings. Consequently the
District has paid $3.50 per dozen for its
typewriter ribbons. while the departments
that have contracts with dealers for the
supply of these articles secure them at the
rate of $3.50 per dozen.
These are the abuses that Commissioner
West hopes to abate through his order OF
today. and which he will persuade his asso-
ciates to adopt as a general order