LETTER TO MR. HARRY E. FITZWATER FROM ALLAN W. BERES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00890R000800110003-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 19, 2016
• Document Release Date: November 14, 2005
• Sequence Number: 3
• Publication Date: September 18, 1981
• Content Type: LETTER

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OFTIOMAL FORM 41 (Rev. 7-76)
Pr scr b.d
FPMR (41 CbbG1A
01-11.206
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 General Transportation
SeL es and Public .
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SEP 1.8 1981
Mr. Harry E. Fitzwater
Deputy Director of Administration
Central Intelligency Agency
Washington, DC 20505
The Administrator of the General Services Administration (GSA) by letter dated
August 17, 1981 (copy enclosed), announced the reinstitution of the use of the
General Supply Fund to finance nonstock direct delivery requisitions for
Government agencies (to be referred to as centralized billing). As indicated in
his letter, I am now forwarding to you more specific instructions concerning the
implementation of this change in billing procedures for vehicle procurements.
Beginning August 4, 1981, all requisitions for vehicle requirements received in
the Transportation and Public Utilities Service (TPUS), Office of Automotive
Management (OAM) will be covered by centralized billing. In addition, requisi-
tions for vehicles received by OAM prior to that date but (1) have not been pre-
viously consolidated for solicitation and (2) are consolidated with requisitions
received after August 4th will be converted to centralized billing. For clari-
fication, your requisitioning office will be notified for the next several
months when requisitions are covered by centralized billing either when they
receive verification of receipt of requisition or when they receive notice of
solicitation. However, if your agency is concerned about which requisitions
will be covered by centralized billing, please contact your procurement agent in
OAM or the OAM representative named at the end of this letter.
As of August 4, 1981, no existing solicitations or contracts will be changed to
centralized billing. However, requirements submitted after August 4, 1981, that
can be filled through an increased option on an existing contract may be con-
verted to centralized billing on a case-by-case basis. This will occur only if
all parties are in agreement and if the procurement agent determines this to be
in the best interest of the Government.
With the reinstitution of centralized billing, the Office of Automotive
Management is implementing an automated system to assist our Office of Finance
in billing agencies for invoices paid by the General Supply Fund. This means
that in order for requisitions to be processed under centralized billing, they
must contain valid FEDSTRIP or MILSTRIP data. Requisitions received without
this data cannot be processed and therefore will be returned.
Your agency will be (or may already have been) contacted by us for your FEDSTRIP
or MILSTRIP codes to be used for vehicle procurement. This information will be
used to create tables in the new system allowing us to edit codes submitted on
requisitions for errors or inaccuracies.
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This action to reinstitute centralized billing for nonstock direct delivery
items is being taken with the Comptroller General's reaffirmation of the use of
accelerated payment procedures (File B-158487 dated July 17, 1981). Accelerated
payment means that GSA will pay upon invoice without confirmation of actual
receipt of goods or services by the agencies. Accelerated payment allows GSA to
comply with the payment terms and conditions of a contract and to earn cash
discounts. You should be aware, however, that contained in the Comptroller
General's decision is emphasis on the agencies' responsibility to ensure that
what is paid for is actually received in proper quantity and condition
(See FPMR 101-2.1(c)). Specifically the decision states:
Agencies must keep records that permit them to determine that what
is paid for is received in the proper quantity and condition. To
do this, it is incumbent upon the agency placing an order with GSA
to match the order with the invoice (billing document from GSA),
the payment and the receiving report and to make this deter-
mination on a timely basis. If any discrepancies exist, the
ordering agency should contact GSA in order to initiate followup
actions to assure these discrepancies are adjusted.
Additionally, the system employed by the ordering agency should
not be passive in nature. That is, once an agency places an
order with GSA and GSA pays on the certification by the vendor
that the goods have been shipped, the system should automatically
on a regular basis require followup by the ordering agency to
determine that all goods in fact have been received. If after a
reasonable period of time the goods have not been received, GSA
should be notified to initiate adjustment with the vendor.
To aid agencies in this responsibility, all copies of delivery orders sent to
consignees will contain the instructions that copies of the receiving report
should be sent to the requisitioning office named on the purchase order and that
deficiencies and discrepancies should be reported to GSA. Instructions which
vary from this for your agency should be given directly to your consignees.
We are pleased to be able to reinstitute centralized billing for vehicle pro-
curements and hope that this change will eliminate many of the problems which
arose under direct billing. Your cooperation will be greatly appreciated espe-
cially during the initial stages of this conversion. Should you need additional
information, please contact Mr. John Tackett, Director, Market Research
Division, on 557-3021.
Sincerely,
ALLAN W. BERES
Commissioner
Enclosure
cc: Vehicle Requisition Sources
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Air. ,. 19ci
Tea r
Tie CeneraI Services Pc'nlin.istrat.ion (GSA) is currently tQl:ing action to
reinstitute the use of the General Supply Fund to finance non-stock direct
delivery requisitions for Gnverrrncnt agencies. 'l'eis action is being taken
with the C.cr:ntrol l r.r General 's reeff i neat ion of the use of accelerated pal,*r>ent
procedures (File B-158487, dated July 17, 19M).
An rxnenfi+ent to the Federal Property Mcnag nt Regulations, stating an
effective date of August 4, 1981, will be issued in the near future to
formally notify agencies of this change in billing procedures. Purchase
orders issued under the previous policy which show the agency as the paying
office mist he resolved by that nccenev. Assistance in this regard may he
obtained by contacting John Allen, the Office of Property Manaf;ernent on
557-8610.
i1,bre specific inforrrvition concerning the irrpletnentat(on strategies and
procedures for various ccrrrmdities will he forN'arft-d to you as soon as
possible. This infornv;tion will be issued directly from the Transportation
and Public Utilities Service (' ) v'hich is responsible for vehicle
procurmrnt and from the Federal Sti.r)l y Service (F'S5) which is responsible
for all other camx)c'ities.
It should he pointed out at this time, h.ever, that contained in the
carptroller General's decision supportir.g accelerpted pcvnent, is the
necessity for agencies involve," to have adequate internal controls to ensure
that what is pa i cl far under this procedure is received i n proper quantity a;:d
condition. k^encios r-ist be responsible for reporting any discrepancies or
deficiencies to CAA for nnpropriate nction.
As yr strive to improve our supply support effectiveness, your cooperation is
sincerely npnreci;+ted. Should yogi need additional infor1Tition, please contact
P?ir. I,ooncrd E. Fn 'nn (FSS) on 557-8f114 or `.'r. ?iehnel J. l)il ich (T i ) on
5~7-3071.
Sincerely,
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 -Approved FTi@OrWtFf4BO0890*RO00-90003-7
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DO NOT use this form as a RECORD of approvals, concurrences, disposals,
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Approv
EO/DDA
OPTIONAL FORM 41 (Rev. 7-7
Prescribed A GSA
FPMR (41 C 101-11.206