Added Emphasis on Consolidation of Multiple Purchase Requests Could Result in Significant Savings

NSIAD-84-143: Published: Aug 20, 1984. Publicly Released: Aug 20, 1984.

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GAO reviewed the potential for consolidating multiple procurements at agencies under the U.S. Army Materiel Command, including the U.S. Army Tank-Automotive Command (TACOM) and the U.S. Army Troop Support and Aviation Materiel Readiness Command, which was recently reorganized as the U.S. Army Aviation Systems Command (AVSCOM) and the U.S. Army Troop Support Command (TROSCOM).

GAO found that the agencies reviewed are not consolidating procurements to the maximum extent feasible. Multiple procurement actions have been processed concurrently for identical items, and about 23 percent of the procurements reviewed could have been combined with other purchases of the same items to obtain lower unit prices. GAO found that about 13 percent of the awarded contracts could have been eliminated. GAO believes that the lack of efficiency is caused by: (1) overemphasis by procurement personnel on minimizing the time required to process each procurement; (2) a lack of aggressive action to match procurements for identical items; and (3) a TACOM local directive that had the effect of discouraging consolidation under certain circumstances.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Commander, U.S. Army Materiel Command, should direct the Commanders of AVSCOM, TROSCOM, and TACOM to require documentation and supervisor review of each decision to not consolidate multiple purchase requests. This procedure should require consideration of the potential savings available through consolidation.

    Agency Affected: Department of Defense: Department of the Army: U.S. Army Materiel Command

  2. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Commander, U.S. Army Materiel Command, should direct the Commanders of AVSCOM, TROSCOM, and TACOM to expedite the handling of purchase requests received in the procurement directorate while another request for like items is being placed on contract. This would allow buyers more time to combine the purchase requests.

    Agency Affected: Department of Defense: Department of the Army: U.S. Army Materiel Command

  3. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Commander, U.S. Army Materiel Command, should direct the Commander, TACOM, to reevaluate the propriety of the local directive restricting consolidation of multiple purchase requests dated 30 days or more apart.

    Agency Affected: Department of Defense: Department of the Army: U.S. Army Materiel Command

 

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