B-144429, OCT. 2, 1964

B-144429, OCT. 2, 1964

TO THE HONORABLE JOHN S. GLEASON, JR., ADMINISTRATOR OF VETERANS AFFAIRS, VETERANS ADMINISTRATION:

REFERENCE IS MADE TO LETTER DATED MARCH 11, 1964, FILE 13403, FROM YOUR DEPARTMENT OF MEDICINE AND SURGERY, WASHINGTON, D.C., TO THE DIRECTOR, TRANSPORTATION DIVISION, GENERAL ACCOUNTING OFFICE, REQUESTING PERMISSION TO EXTEND THE USE OF REA EXPRESS WAYBILLS IN LIEU OF GOVERNMENT BILLS OF LADING, AS GRANTED FOR YOUR FORMS DEPOT UNDER B-144429, SEPTEMBER 24, 1963, TO THE THREE VETERANS ADMINISTRATION SUPPLY DEPOTS LOCATED AT HINES, ILLINOIS; SOMERVILLE, NEW JERSEY; AND WILMINGTON, CALIFORNIA.

THE REQUEST STATES THAT THE THREE SUPPLY DEPOTS PREPARE APPROXIMATELY 2,200 GOVERNMENT BILLS OF LADING ANNUALLY COVERING REA EXPRESS SHIPMENTS TO THE VETERANS ADMINISTRATION AND OTHER GOVERNMENT AGENCY STATIONS. ALSO, IT IS STATED THAT THE TRANSPORTATION CHARGES FOR THESE SHIPMENTS ARE UNDER $50 AND ARE PAID BY EACH SHIPPING DEPOT. THE STATED REASONS FOR SHIPPING REA EXPRESS ARE THAT THE ARTICLES SHIPPED REQUIRE REA EXPRESS SERVICES, AND THAT THE CHARGES ARE LESS THAN BY OTHER MODES OF TRANSPORTATION.

THE LETTER FURTHER STATES THAT REA EXPRESS HAS AGREED TO SUPPLY WAYBILLS UNDER THE SAME CONDITIONS THAT APPLY TO SHIPMENTS FROM YOUR FORMS DEPOT IN ARLINGTON, VIRGINIA. YOU EXPLAIN THAT YOU WOULD APPLY THE SAME PROCEDURES AS AT THE FORMS DEPOT AND THAT THE TRANSPORTATION FUNCTION AT EACH SUPPLY DEPOT IS UNDER THE SUPERVISION OF A QUALIFIED TRANSPORTATION SPECIALIST. SINCE THE USE OF THE REA EXPRESS WAYBILL AT THE FORMS DEPOT HAS REDUCED ITS WORKLOAD APPROXIMATELY 50 PERCENT, YOU BELIEVE THAT IT WOULD BE EQUALLY BENEFICIAL TO USE THIS DOCUMENT AT YOUR OTHER DEPOTS.

IN REPLY THERETO DATED MARCH 30, 1964, THE DIRECTOR, TRANSPORTATION DIVISION ADVISED YOUR DEPARTMENT OF MEDICINE AND SURGERY THAT, IN VIEW OF A PENDING DEVELOPMENT IN THE SIMPLIFICATION OF SHIPPING DOCUMENTS AND PROCEDURES ON A GOVERNMENT-WIDE BASIS, WE WOULD HOLD THE REQUEST IN TEMPORARY SUSPENSE AND PROVIDE NOTICE OF THE RESULTS AS SOON AS WE WERE IN A POSITION TO DO SO. ALTHOUGH CONSIDERABLE PROGRESS HAD BEEN MADE ON THIS SIMPLIFICATION PROJECT, IT IS NOW CLEAR THAT AN EXTENDED TEST OF ITS GENERAL FEASIBILITY WILL BE REQUIRED BEFORE IT CAN BE AUTHORIZED FOR AGENCY USE. ACCORDINGLY, OUR TRANSPORTATION DIVISION INQUIRED AT THE DEPARTMENT OF MEDICINE AND SURGERY AND WERE ASSURED BY ITS OFFICIALS THAT THEY ARE STILL INTERESTED IN EXPANDING THE REA EXPRESS WAYBILL PROCEDURE TO THE THREE SUPPLY DEPOTS. REPRESENTATIVES OF OUR TRANSPORTATION DIVISION THEN VISITED YOUR FORMS DEPOT AND YOUR CENTRAL OFFICE ON AUGUST 12, 1964, IN ORDER TO OBSERVE THE REA EXPRESS WAYBILL PROCEDURE IN ACTUAL OPERATION AND TO OBTAIN ADDITIONAL INFORMATION CONCERNING THE PROPOSED EXPANSION.

FROM OUR OBSERVATIONS AND INQUIRIES MADE AT THE FORMS DEPOT AND AT THE CENTRAL OFFICE, WE ARE SATISFIED THAT THE PRESENT SYSTEM PROVIDES ADEQUATE PROTECTION OF THE GOVERNMENT'S INTERESTS. WE HAVE BEEN INFORMED THAT THE EXPANSION OF THIS SYSTEM TO THE THREE DEPOTS WOULD BE USED PRIMARILY FOR SHIPMENTS OF MEDICAL SUPPLIES WHICH ARE NORMALLY SHIPPED VIA REA EXPRESS. ACCORDINGLY, WE AUTHORIZE THE USE OF REA EXPRESS WAYBILLS IN LIEU OF GOVERNMENT BILLS OF LADING AT THE THREE SUPPLY DEPOTS NAMED, UNDER THE SAME CONDITIONS PROVIDED IN OUR LETTER OF SEPTEMBER 24, 1963, B-144429.

IN THE EVENT THAT REA EXPRESS WANTS TO PREPARE ITS INVOICES FOR BILLING CHARGES ON SHIPMENTS FROM THE THREE SUPPLY DEPOTS IN THE MANNER APPROVED FOR PRINTED FORMS IN OUR LETTER OF JUNE 22, 1964, B-144429, WE WOULD HAVE NO OBJECTIONS PROVIDED THE SAME CONDITIONS ARE OBSERVED.