Evening star., 1949-02-14

1UI NAVY SC1 WIG.
lmittee to make Government-wide
purchase, stores, inspection, test
ing and other assignments. The
committee would also assign re-
sponsibillty for such special pro-
grams as stockpiling.
One of the commissions recon-
mendations is that legislation be
enacted to repeal the conglomera-
ton Of existing statutes to clear
the books of the present restric-
tive and often conflicting deci-
sions and regulations and to pro-
vide the basic principles OF an
effective supply system.
The commission also recon-
mended legislation to permit con-
tracts to be negotiated under
specified conditions and to raise
from 500 to $1,000 the ceiling
for purchases without competitive
bids. These principles of the
Armed Services Procurement Act
Of 1947, the commission said,
should apply to all agencies. 1t
describes such legislation as
fundamental in achieving worth
while improvements in supply
operations.
Six Divisions Proposed.
The commission stated it re-
Trained from recommending a
specific internal structure for the
new supply bureau but that it
should have units for SIX activi-
ties. These are purchase and
storage, traffic management, spec
ifications, property Identification.
inspection and property utiliza-
ton.
Some of the purchase ana
storage activities have been in
dicated already. In addition this
unit would:
/. Handle the purchasing for
small agencies whenever it is
economical to do so.
2. Operate a Nationwide sys-
tenn of storehouses to supply de-
partments and field services with
common-uSe items.
3. Purchase for all agencies
those items in which volume buy
ing means saving.
4. Develop master forms of bid
and contract documents.
Personnel Criticized.
At present, the commission said.
many purchasing Offices are not
manned with competent person
mel although it is job requiring
a high degree of professional
competence.
Another criticism is that pur-
chases are unplanned. The task
force said the Government fire.
quently goes into the market for
large quantities at the wrong time
and thereby increases prices paid
by the general public.
Another criticism is that ap-
proximately half the several mil
lion purchase orders annually are
for $40 or less. And since the cost
of handling a purchase is much
more than $40, the overhead cost
is more than the cost of the goods.
Cutting the, paper work cost by
only $40 per order on the 1,500,-
900 orders year for $40 or less
would mean $15,000.000 saved, the
task force pointed out. 1t said
also tllc:os O 10 po.' &C.. reduction
in staff would mean q saving of
at least 100000 a year. The
military departments reported a
total of $500 purchasing employees
with annual salaries of almost
500, 900. 900, while civilian agencies
employ approximately 1000 per-
sons in technical purchasing posi-
tions. exclusive of stenographers
and clerks.
Other Criticisms.
Other criticisms are that pur-
chasing officers lack information
and funds necessary to schedule
purchases so as to take maximum
advantage of market conditions,
and that they have failed to de-
velop cost records and other es-
sential tools.
Purchasing operations. the COM
mission said, have degenerated
largely into the routine practice
of soliciting bids and awarding
contracts to the lowest bidder"
The commission estimated that
in military and civilian agencies
more than 100000 employees at an
annual salary cost of $270,000, 900
are engaged in storage and issue
Of supplies.
There are too many warehouses
and they maintain duplicating in
Eventories, the commission said. It
gave as an example that In the
Washington area alone 70 differ
ent Government activities operate
storage and issue facilities ex-
elusive Of the Bureau Of Federal
Supply and the Government
Printing Office.
A large part Of the inventories
ore a 1onp distance from the mint