GAO: Postal Service achieves scant savings from national office supply contract.

Set-Aside Alert, January, 2003

The Postal Service should reassess its strategy of buying office supplies through a single national contract, because the contract has achieved nowhere near the savings or the small business participation that was promised, the General Accounting Office said.

GAO said. "The Postal Service has not yet been successful in implementing" the three-year-old-old contract with Boise Office Solutions, which replaced longstanding arrangements with many small, local firms.

In response to the report, the Postal Service said it is committed to the national contract and is working to improve management of it.

Rep. Nydia Velazquez (D-NY), ranking minority member of the House Small Business Committee. called on the Postal Service to cancel the contract....

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