Expanded Use of an Improved Defense Automated Small Purchase System Would Yield Big Savings

PSAD-81-10: Published: Nov 13, 1980. Publicly Released: Nov 13, 1980.

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The Standard Automated Small Purchase System (SASPS) at the Defense Logistics Agency (DLA) is an advanced, computerized system for procuring supplies such as hardware, appliances, electronic components, and construction materials for the military. The system expedites awards of under $10,000 by reducing manual effort and cutting administrative costs, while insuring fair and reasonable prices for goods.

The quality of SASPS compares favorably with manual buys, and it is less costly to administer. However, improvements are needed to increase the efficiency of the system and to broaden its scope. No formal long-range management plan exists to guide the orderly development, modification, and expansion of the system. The expansion of automated purchasing to include most of the small purchase items would result in an estimated savings in administrative costs of at least $4.5 million annually.

Recommendations for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of Defense should require DLA to periodically report to him on the activities undertaken and the progress achieved in improving and expanding SASPS.

    Agency Affected: Department of Defense

  2. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of Defense should require DLA to immediately establish and implement a time-phased action plan to expedite implementation of system improvements and to expand automation of small purchases to items that are presently processed manually.

    Agency Affected: Department of Defense

 

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