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Buy Our Spares Smart Program
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Precaution Against Duplicate Shipments
parts  at  fair  and  reasonable  prices.  The  BOSS emphasis   on   breakout   has   changed   previous beliefs  that  only  the  prime  contractors  of  weapons systems  can  reliably  supply  spare  parts  to  the Navy. In FY87, the Navy Pricing Hotline, operated by   the   Fleet   Material   Support   Office   in Mechanicsburg,  Pennsylvania,  received  numerous calls  from  individuals  in  the  fleet.  The  callers identified  possible  overpriced  items  and  out  of those  price-challenged  calls  the  Navy  found evidence to reduce prices in 25 percent of those cases. Challenging unreasonable prices has become a  way  of   “tightening  the  reins”  on  possible overcharging.  People  willing  to  make  the  extra effort  to  report  items  that  they  believe  may  be overpriced  are  the  reason  the  Navy  Pricing Hotline has been so successful. Of particular note is the increase in both quantity and quality of price challenges  received  from  fleet  sailors. During FY86, the engineers, technicians, and equipment specialists at the Navy’s Price Fighter Detachment   in   Norfolk,   Virginia,   performed Should-Cost  analyses  on  2,923  spare  parts. Should-Cost  analysis  of  a  part  includes  the following: .  A  review  of  all  available  drawings  and technical data .  Physical  examination  of  the  part .  Determination  of  the  part’s  material content  and  manufacturing  processes .   Calculation   of   the   labor   hours   for manufacturing and testing the item .  An  estimation  of  labor,  overhead,  and administrative  costs  and  profit Target  prices  are  computed  for  three  different production   quantities:   1  quarter’s  demand,  1 year’s  demand,  and  3  years’  demand. The  Price  Fighter  concept  provides  a  check and  balance  for  reasonable  prices  that  benefits Navy buyers and lets industry know that the Navy has the ability to scrutinize their pricing and will not allow overcharging. The target prices resulting from Should-Cost analyses give Navy buyers the information  they  need  to  negotiate  reasonable prices. Price  Fighter  expanded  its  Should-Cost  service to several naval regional contracting centers and naval supply centers on 1 July 1986. In addition to giving buyers excellent negotiation objectives, Price  Fighter  personnel  have  frequently  been  able to   identify   stock-numbered   cross-references, substitutes, part-numbered   and   additional sources. The people of Project BOSS will continue to emphasize  competition  as  the  preferred  way  of doing  business.  They  will  strive  to  meet  increased breakout  goals  and  will  work  to  develop  better tools  to  assist  in  obtaining  fair  prices  for  items that  remain  sole  source  procurements. Technical   data   remains   the   single   most important  factor  affecting  the  Navy’s  ability  to break   out   and   complete   spares.   In   FY87, acquisition  plan  reviews  had  continued  to concentrate   on   ordering,   delivering,   and validating adequate data. The Navy will also use reverse engineering to develop technical data for items for which there is either inadequate or no data or for which the former manufacturer holds proprietary   data   rights.   Reverse   engineering means  determining  the  specifications  for manufacturing  a  part  purely  by  means  of  physical examination  and  measurement  of  that  part. In   addition, work  will  continue  in  the automation  of  data  bases  through  the  Navy Standard  Technical  Information  System  and  in the  enhancement  of  procurement  operations through  the  Automated  Procurement  and  Data Entry System. The Navy has set competition goals that will give Project BOSS a challenge. The achievements that  they  are  striving  for  will  be  possible  only through  the  efforts  of  thousands  of  individuals, all  performing  their  jobs  to  the  best  of  their abilities. BOSS is not just a project; it’s people! PAYMENT  OF  DEALERS’  BILLS Under the provisions of the Prompt Payment Act,   Public   Law   97-177,   federal   agencies   are required  to  pay  interest  penalties  for  the  late payment   of   a   proper   dealer’s   invoice.   In   the interest   of   better   business   relationships   with suppliers,  improved  efficiency  of  the  bill  paying functions,  and  reduced  cost  of  goods  and  services, all   activities   with   procurement   or   purchase authority  are  required  to  certify  and  forward proper  invoices  promptly  to  the  paying  office specified  in  the  purchase  order.  Payment  for  most procurements  is  due  30  days  from  the  date  of acceptance  of  material,  services,  or  receipt  of invoice, whichever is later, unless another date is specified in the contract. For the paying office to 6-15

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