United States Postal Service's Neighborhood Delivery and Collection Box Program

Testimony was given concerning the U.S. Postal Service's Neighborhood Delivery and Collection Box Program, specifically whether: (1) an allegation that the Service was not following its established procedure of procuring cluster boxes in lots of 100 or less could be substantiated; and (2) there were problems with the quality of cluster boxes being procured. The Service installs cluster boxes to provide centralized delivery and limits the size of each procurement of cluster boxes to 100 units or less in an attempt to preserve competition within the industry. It was alleged that the Service's Dallas Procurement Office had deviated from this established procurement procedure in procuring 9,000 units by preparing 90 purchase orders for lots of 100 units on the same day from the lowest bidder. In addition, it had not requested bids in writing, but accepted bids over the telephone. GAO found that requesting quotes of lots not exceeding 100 units and then buying multiple lots from one source complied with the Service's established procurement policy. Neither the policy nor its implementing procedures limit the total number of units that may be purchased from one source. In response to complaints it received about the poor quality of cluster boxes, the Service established a quality assurance program in 1983. However, Service specifications fail to address essential issues of product quality, durability, and uniformity. Therefore, the Service plans to revise its specifications.