Procurement Costs of General Purpose Mail Containers Can Be Reduced

GGD-81-99: Published: Sep 23, 1981. Publicly Released: Sep 23, 1981.

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GAO reviewed restrictive conditions and specifications in Postal Service solicitations and contracts and their impact on competition, cost, and the Postal Service's relationship with private industry. Specifically, GAO reviewed the Postal Service's formally advertised, fixed price contracts for general purpose mail containers and shelf inserts.

GAO found that the companies which bid on or requested the solicitation for these containers were generally pleased with the solicitation, and they did not identify any unduly restrictive conditions or specifications. Although the container specifications were not found to restrict competition, GAO believes that the requirements for one of the awards resulted in excessive freight costs.

Recommendation for Executive Action

  1. Status: Closed

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

    Recommendation: To obtain containers at the best cost, the Postal Service's Office of Contracts should group future requirements in a way that minimizes freight costs.

    Agency Affected: United States Postal Service: Procurement and Supply Department: Office of Contracts

 

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