PROCUREMENT OF COMMON-USE ITEMS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87-01146R000100030004-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 23
• Document Creation Date: December 14, 2016
• Document Release Date: March 13, 2003
• Sequence Number: 4
• Publication Date: September 15, 1975
• Content Type: MF

Approved For Rele0 2003/05/06: CIA-RDP87-01146R00 30004-6
15 SEP 1975
MEMORANDUM FOR: Acting Director of Logistics
SUBJECT : Procurement of Common-Use Items
REFERENCE : Ltr dtd March 24, 1975, to Heads of Clvii Departments and
Agencies fr Comptroller General of the United States,
Subj: Possible Savings, in Procurement of Goods and
Services
1. By means of a "Report to the Congress" dated 31 December 1974, the
General Accounting Office (GAO) of the Comptroller General noted that:
a. General Services Administration (GSA), with minor exceptions,
is responsible, under law, for procurement and supply of goods and
services to federal agencies.
b. During FY 1973, GSA did, in fact, provide goods and services
valued at $1.7 billion to Executive Branch agencies. During this same
period, however, agencies which should have procured most, if not all,
of their requirements from GSA spent an additional $1.4 billion with
commercial sources for identical or similar goods and services available
from GSA sources.
c. Average savings realized through use of GSA sources is figured
to be 23 percent as compared to commercial prices.
2. By coincidence, an independent study prepared by Logistics Services
Division (LSD) during March and April 1975 addressed the same subject, i.e.,
GSA versus commercial sources, but with some rather different conclusions.
Based on a selected, but representative, list of 22 fast moving standard
stock items, it appears that we could have saved $71,000 last fiscal year had
we purchased our requirements for those items in the commercial market (attach-
ment A).
3. We have reviewed the entire subject in an effort to reconcile the
apparent differences noted above and have established some key factors which
appear to preclude any-general Agency policy permitting commercial acquisition
of coesmn-use supplies normally obtained from GSA. The governing Federal
Regulations are very explicit as to our responsibilities in this respect.
For example, paragraph lOls25.101-5, chapter 101, of the Federal Property
Management Regulations states:
0L 5 4668
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 Approved For Rele0 2003/05/06: CIA-RDP87-01146R000 030004-6
SUBJECT: Procurement of Common sq Items
"The following criteria shall govern in determining whether an item
should be supplied through local purchase:
(a) Urgency of need requires local purchase to assure prompt
deliveries;
(b) The items are perishable or subject to rapid deterioration
which will not permit delay incident to shipment from distant points;
(c) The local purchase is within applicable limitation established
by the Agency head; or
(d) Local purchase will produce the greatest economy to the
Government."
4. Heretofore, we have procured commercially only those items falling
within the "urgency of need" category and the LSD proposal opens for discussion
the possibility of greater economy through local purchase which is in direct
contravention to the GAO findings and reconmiendations. Here again the control-
ling Federal Regulation is both explicit and limiting, permitting such action
only when prior authority has been obtained from the Commissioner, Federal
Supply Service, GSA. As can be seen (attachment B), such authority will not
be granted easily, a fact confirmed by the Chief, Supply Division (SD).
5. On balance, the Office of Logistics is complying with both the letter
and the intent of existing Federal Regulations. Following are summaries of
how we obtain common-use items.
a. Interdepartmental Support Branch, SD - The. bulk of items procured
(55 percent) come from Defense Supply Agency and not GSA. The balance
of those items procured come from established GSA sources with the exception
of rather insignificant demands on such other Government sources as the
Departments of Army, Air Force, and Navy.
b. General Procurement Branch, Procurement Division - Although 67
percent of this unit's workload reflects commercial procurement, this
source is only used when requirements cannot be obtained through existing
Federal Schedule contracts or other Government sources. Commercial acqui-
sitions fall logically within the emergency concept.
c. Small Purchases Branch, .1 Most of this ST
unit's acquisitions come from GSA controlled sources. Those items procured
from commercial firms all fall within the emergency category.
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SUBJECT: Procurement of Common-Use Items
d. Building Services Branch (BSB), LSD - As a general rule, BSB
STAT either requisitions from =or obtains items from GSA. Material is
obtained from commercial sources only when not available, or some times
when back ordered from GSA. It must be noted that lengthy GSA back
orders are not uncommon. For example, in August an order was placed
with GSA for ordinary staples. GSA notified us that staples would not
be available before April 1976. Another typical item is dictionaries
ordered last May but not to be delivered until April 1976. Quantities
of both of these items might have to be procured commercially even
though they are included in the list of things we must buy from GSA.
6. One interesting fact developed during the course of this review con-
cerns the almost cyclic variation of prices for specific commodities. It is
evident that most of the time, and for most items, GSA is a less costly
source of the material it provides. This is true even for the 22 specific
items listed in attachment A even though at the time commercial quotations
were obtained they were less than the GSA quoted prices. The probable cause
of this phenomenon is the necessity for GSA to survey the market and to insure
adequate supplies of those items they believe may be entering a shortage phase-
even if it is necessary to pay premium prices to insure adequate inventories.
The frequent, and obvious, end result of this approach, of course, is a situa-
tion in which a shortage or drastic price increase doesn't occur and GSA is
caught with a high-price commodity which it must sell at a price higher than
the current market price. This factor is discussed in the GAO report. It
followslogically then that at any given time there will be some items stocked
by GSA at a higher cost than the current market price. This is not adequate
Justification to procure comrmercially, however, as the next GSA buy will reflect
the lower prices dictated by the supply and demand interplay involved. This
fact is accepted by LSD.
7. To summarize:
a. The bulk of our procurements of common-use Items are made through
proper channels within the intent of the governing Federal Regulations.
b. There really is no overall saving inherent in commercial procure-
ment of even selected items as GSA will normally provide the financial
benefits of bulk buying at the best possible price.
c. There wilt continue to be limited buys In the, comrcial market
for those common-use items not immediately available through GSA.
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 Approved For Releawft 2003/05/06: CIA-RDP87-01146R00 030004-6
SUBJECTS Procurement of Common-Use Items
8. Based on the totality of the very complicated picture outlined above,
it is our recommendation that we continue on with our current approach to
procurement of common-use items. This approach has met the dual tests of time
and performance throughout the Agency.
STAT
Atts
d. In any event, it would be extremely difficult, if not impossible,
to obtain the necessary waiver to permit the Agency to have free access
to the commercial market.
Chief, Plans and Programs Staff, OL
Distribution:
0 + 1 - Adse, w/atts & Ref
< "I OL/P&PS/Official, w/atts
STAT OL/P&PS:
(15 Sep 75)
cc: C/LSD/OL, w/att B
C/PD/OL, w/att B
C/SD/OL, w/att B
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11 ,
_L U"
ADF;
17 APR 1975
MEMORANDUM FOR: Chief, Plans and Programs Staff, OL 1/
Chief, Procurement Division, OL
Chief, Supply Division, OL
SUBJECT Cost Effectiveness of Present Requisitioning/
Procurement Procedures
1. This Division does on occasion make small emergency
purchases of so-called standard stock items for special
customer short leadtime requirements or to tide us over
pending delivery of stock on order. This has led us to
do some comparison shopping with what I feel are amazing
results. Attachment A, the product of considerable research
STAT by reflects a possible annual savings of
$71,000 were we to obtain the items listed therein from
commercial sources as opposed to requisitioning them from
GSA stores stock. Attachment B represents quotations pro-
vided by local merchants. As says, this is STAT
enough to cause us to wonder as to the relative values of
the massive GSA centralized procurement system.
2. It would seem to us that in this case adherence to
long-established procedures may well win us the accolade of
the year for being nice guys that follow the rules, but
there are Pyrrhic implications in such an award, particularly
in view of the $71,000 and the current budget climate. Per-
haps we should think about having PD establish a few BPA's
with Stott, Ginn, et al., for LSD/BSB use provided we can
have GSA provide the necessary waiver. We may just have
sufficient justification for BSB as it has a minimal stock -
direct-use type of operation. For stocks, I STAT
am not at all sure. In any event, it will take good coordi-
nation and cooperation on the part of all divisions concerned,
and if we can have those good things without committee meeting
this problem to death we will all be ahead. is our STAT
representative. May we hear from you?
STAT
Chief
Logistics Services Division, OL
cc: C/BEFB/OL OL 5 10,104
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 AUMINISTRATIyy --- ! ~'J'cE
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8 April 1975
MEMORANDUM FOR: Chief, Logistics Services Division, OL
THROUGH Chief, Building Services Branch, LSD/OL
SUBJECT GSA Schedule Prices vs. Open Market Prices
1. The items on the attached listing are currently
being procured from General Services Administration.
Also attached are current quotations from three commercial
vendors for similar items.
2. The listing is self-explanatory and represents
a savings of $70,864.00 per year to the Agency if we could
procure selected items on the open market.
3. As an additional savings idea, if 10,000 people
in Headquarters Metropolitan Area saved one paper clip
per working day (10,000 = 10 box s X $400/Bx X 252 days
per year) we could save an additional $1,080.00 per year.
STAT
C
Acquisition $ Control Section
Building Services Branch, LSD/OL
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 312 EVERYTHING FOR THE OFFICE
April 3, 1975
Central Intelligence Agency
STAT
BALTIMORE ? WASHINGTON ? RICHMOND
This letter will confirm our conversation of two weeks ago in
reference to pricing on items that you might purchase on the
open market from the M. S. Ginn & Co.
Items and prices will be as follows:
4020-241-8881 Twine
7210-205-1175 Cushion
7220-457-6046 Chair Mat
7220-457-6054 Chair Mat
7220-205-3182 Chair Mat
7510-285-5995 Binder Clips
7510-223-6807 Binder Clips
7510-282-8201 Binder Clips
7510-161-4292 Paper Clips
7510-687-7867 Wite-Out
7510-171-1123 Reinforcements
7510-161-4284 Fasteners
7510-223-6814 Fastener Bases
7510-223-6815 Fastener Bases
7510-254-9054 Finger Pads
7510-254-9065 Finger Pads
7510-254-9056 Finger Pads
7510-991-1816 Ko-rec-type
7510-162-6166 Paperweight
7510-281-5234 Pencils
7510-286-5757 Pencils
7510-286-1407 Sheet Protectors
7510-205-1439 Rubber Bands
7510-?205-1438 Rubber Bands
7510-243-3434 Rubber Bands
7510-243-3435 Rubber Bands
7510-272-9662 Staples
7520-264-5479 Book Ends
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Current'Price
.71 per ball X"
2.54
eachX
19.90
each-
23.80
eachx
31.30
each(
1.71
per
doz.-
.72
per
doz.k
.48
per
dozes
1.47
per
M
/
.39
per
bottle/
.16
per
150 L-
.78
per
box of
50'<
.98
per
box of
100'
.87
per
box of
100-X
.065
each c
.065
each ,-\
.065
each X
.23 per pkg.
.86 each <
.29 per doz.
.29 per doz.,`
.06 each X
.28 per box,-
.28 per box /
.28 per box
.28 per box.--
47 .per box X
.67 per pair ~
230 :5a_
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M. S. GINN & COMPANY ? 919 E STREET, NORTHWEST ? WASHINGTON, D.C. 20004 ? 202/628-5000
 Approved For Sase 2003/05/06 :. CIA-RDP87-01146 0100030004-6
7520-285-3145 Wood Card Box
7520-285-3146 Wood Card Box
7520-286957 Card File
7520-286-6959 Card File
7520-281-5918 Clipboard
7520-240-5503 Clipboard
7520-550-6501 Copyholder
7520-286-1726 Everyday File
7520-286-1724 Everyday File
7520-171-1120 List Finder
7520-162-7109 Numbering Machine
7520-281-5895 Stapler
7530-247-0318 Index Cards
7530-247-0325 index Cards
7530-243-9436 Index Cards
7530-243-9437 Index Cards
7530-261-3801 Card Guides
7530-574-7172 Card Guides
7530-249-5969 Card Guides
7530-261-3804 Card Guides
7530-861-1272 Card Guides
7530-285-1689 Card Guides
7530-261-3819 Card Guides
7530-261-3818 Card Guides
7530-261-3813 Card Guides
7530-223-7939 Steno Notebooks
7530-263-2782 Columnar Pads
7530-253-2537 Columnar Pads
7530-073-1131 Columnar Pads
7530-880-2558 Columnar Pads
7530-825-0234 Columnar Pads
7530-285-3083 Pads (50 sheet)
7530-286-6173 Pads (50 sheet)
7530-285-3090 Pads (100 sheet)
7530-239-8479 Pads (100 sheet)
&530-228-2096 Duplicating paper (10-1/2x8) 1.36 per ream V
7530-224-6754 Duplicating Paper (14x8-1/2) 1.76 per ream,c'
7610-527-2849 Dictionary (as per sample) 6.14 each X
8135-290-3407 Kraft Wrapping Paper (24") 15.04 per rol1X
8135-160-7764 Kraft Wrapping Paper (36") 22.56 per roll "-~
8305-205-3496 Cheesecloth (10 yds.) 1.56 per bolt.-""
Please keep in mind that any orders placed for any of these items
must conform to the manufacturers standard packaging and that in
some instances there would be minimum orders involved.
A
Very truly, yours
7J j t LI"~~ t!'/
names u. nisn
Sales Representative
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E29 each/
.90 each
1.38 each /, S s A ~~/'~ -~
2.00 each 2 s s G s fa ~s~/Yr
.37 each C 5 --
` yr
. 39 each qu c 5 f} 50
/
18.00 each
.
2.12 each/
2.70 each #/~ ..
1.78 each x
34.90 each ><
3.60 each x
1.73 per MX
1.73 per M c
3.88 per M~