Evening star., 1925-02-01

tho control and supervision OF the
President
With such an agency it would be
possible for the Government to substi-
tute, where desirable, short-term con-
tracts for definite quantities for the
present annual contracts for indefinite
quantities. This would enable the
Government to take advantage Of sea-
sonal fluctuations in commodity prices.
1t would also enable contractors to
deal with a single agency and in large
lots. not merely in the delivery of
goods, but in such related matters as
inspection, payment and accounting.
The committee feels that the proposed
arrangement should result in material
savings to the Government.
study Shows Savings.
Representative Wood has had a
careful study made and shows that
savings Of from to 361a per cent
have been effected by definite guam
tlty purchasing on a wide variety or
articles. He emphasizes that the diff
ference in unit price, represents a
saving which extends over an entire
fiscal year, even though, in some
cases, there were reductions in mar
ket prices, for the Government could
not have taken advantage OF these
reductions If 1t had been under run
ming contract obligations.
The total saving effected by buying
tires and tubes in definite quantities
during the past fiscal year amounts to
$685. The total saving on rubber
bands, which have just been placed
under definite quantity purchase for
the current fiscal year will amount
approximately to $500, this figure
being based upon quantities normally
bought during year.
1t is believed that the advantage 70
the Government of buying in definite
quantities, whenever this is practlc-
able, have been proven beyond con-
troversy, both in betterment of prices
bid and IN far more adequate quality
inspection of deliveries.
But there remains a serious handi
cap to complete success of conson-
dated definite quantity purchasing
even in case of those articles upon
which the largest saving appears.
This handicap exists because of the
lack of a common fund from which
payment can promptly be made after
receipt and inspection OF goods thus
bought through the interdepartnental
agency, the general supply commit
tee.
AIDS l.. y. h1nh hS ITUuGTs
The bill reported to the House by
the judiciary committee win enable
the general supply committee to make
payments for supplies bought through
this agency in definite quantities i'm
rnediately after the goods have been
delivered and have passed inspection.
Discounts offered for prompt payment
will thereby be saved to the Govern
ment and the Governments reputation
as a trader elevated.
Paper work involved in the prepa-
ration and approval of purchase
orders and vouchers will be reduced
to a minimum. Thus, instead of 265
purchase orders for rubber bands in
be but four. Accounting, auditing
and disbursing operations will be
correspondingly reduced.
Fuel Yard Work Cited.
The experience of the Government
fuel yards in buying coal for the
Government in Washington through a
reinbursable fund indicates how safe
ly and advantageously such fund
may be employed. The fund of the
fuel yards was originally S1,154, 900,
but it has since been reduced, at the
request of the Interior Department,
to $500, 600, and will soon be reduced
again to 100000. These reductions
have been made possible by the habit OF
prompt reimbursement for fuel which
the fuel yards has been able to instil
in the departments and establish
ments. The contractors, on the other
hand, are receiving payments for fuel
delivered by them to the fuel yards
within a few days after they submit
vouchers to the Government. With
out the reimbursable fund of 100000,
soon to be reduced to 100000, the
fuel yards would be confronted with
the necessity of seeking an appropria-
tion of upward Of $2,500,000, the pres
ent yearly cost of the fuel which it
buys and distributes.
This bill applies to the purchase OF
other supplies commonly used by two
or more departments, the same sim
pie facilities as to payment now &C
corded TO the purchase Of coal.
Endorsement Found.
Endorsement of the legislation
urged by Representative Wood is
found also in the public building pro-
gram for the National Capital. The
Public Building Commission strongly
advocates the erection Of d large
frcproof warehouse for the use OF
general supply committee and other
purchasing agencies. Senator King
in u report from the committee on
public buildings and grounds, en-
phasizes that this would be "a most
advantageous investment on the part
OF the Government
This building should be con-
veniently located with respect to
railway facilities and large enough
to accommodate all current stocks OF
supplies carried by the Government
and to take take care OF all storage
needs.
There would be the following ad-
ditional advantages:
1t would be possible to concentrate
all the Goyexnments storage OF sup.