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

Gao ID: PSAD-81-10 November 13, 1980

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

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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