B-144429, MAR. 1, 1968

B-144429: Mar 1, 1968

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DRIVER: REFERENCE IS MADE TO YOUR LETTER DATED NOVEMBER 29. THIS AUTHORIZATION WAS GRANTED FOR A TEST PERIOD OF SIX MONTHS. AT THE CONCLUSION OF WHICH A FURTHER EVALUATION OF THE PROCEDURES WAS TO BE MADE. REPORTS FROM YOUR FIELD OFFICES INDICATE THAT THE PREPAYMENT PROCEDURES ARE HIGHLY SATISFACTORY.

B-144429, MAR. 1, 1968

TRANSPORTATION - BILLS OF LADING - PREPAYMENT DECISION TO VETERANS ADMINISTRATION APPROVING ON PERMANENT BASIS AUTHORITY TO REIMBURSE VENDORS FOR PREPAID TRANSPORTATION CHARGES NOT EXCEEDING $25 PER SHIPMENT ON F.O.B. ORIGIN PURCHASES OF MEDICAL AND RELATED SUPPLIES REQUIRING EXPEDITED TRANSPORTATION SERVICES.

TO MR. DRIVER:

REFERENCE IS MADE TO YOUR LETTER DATED NOVEMBER 29, 1967, CONCERNING PROCEDURES COVERING SMALL SHIPMENTS OF MEDICAL AND RELATED SUPPLIES FOR VA HOSPITALS, WHICH REQUIRE EXPEDITED SERVICE. OUR DECISION OF JANUARY 16, 1967, B-144429, AUTHORIZED YOUR ADMINISTRATION TO REIMBURSE VENDORS FOR PREPAID TRANSPORTATION CHARGES NOT EXCEEDING $25 PER SHIPMENT ON F.O.B. ORIGIN PURCHASES, SUBJECT TO CERTAIN SPECIFIED CONDITIONS. THIS AUTHORIZATION WAS GRANTED FOR A TEST PERIOD OF SIX MONTHS, AT THE CONCLUSION OF WHICH A FURTHER EVALUATION OF THE PROCEDURES WAS TO BE MADE.

AS STATED IN YOUR LETTER, REPORTS FROM YOUR FIELD OFFICES INDICATE THAT THE PREPAYMENT PROCEDURES ARE HIGHLY SATISFACTORY. REDUCTION IN THE NUMBER OF GOVERNMENT BILLS OF LADING ISSUED HAS RESULTED IN A SUBSTANTIAL INCREASE IN SAVINGS AS WELL AS A CONSIDERABLE DECREASE IN RELATED ADMINISTRATIVE PROBLEMS. YOU THEREFORE REQUEST A CONTINUATION OF THE PROCEDURE ON A PERMANENT BASIS.

IN VIEW OF THE STATED BENEFITS AND THE DEMONSTRABLE SAVINGS REFLECTED IN YOUR EVALUATION, WE SEE NO OBJECTION TO THE PROPOSED USE OF THE PREPAYMENT PROCEDURES FOR PURCHASES INVOLVING NOT MORE THAN $25 IN TRANSPORTATION CHARGES ON AN F.O.B. ORIGIN BASIS.

ACCORDINGLY, WE APPROVE YOUR REQUEST TO CONTINUE ON A PERMANENT BASIS THE PROCEDURES OUTLINED IN B-144429, JANUARY 16, 1967, SUBJECT TO ALL THE CONDITIONS SPECIFIED THEREIN.

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