COMDTINST 4408.7
MAR 6 1995
c.
Overpricing of items within the FSS can occur for a variety of reasons.
(1)
One of the most common causes of overpricing is the use of excessive
Government specifications. For example, unnecessary packaging can add
significantly to the price of an item.
(2)
Another common problem is markups or added costs tacked on by
contractors or distributors.
(3)
Frequently, excessive prices are the result of simple clerical errors.
d.
Whatever the reason, overpricing costs the Government unnecessarily. While IMs
strive to eliminate overpriced stock within the inventory, they are not always
familiar with the function or design of the parts they manage. Often, the actual parts
user is in a better position to identify a questionable part-to-price relationship.
e.
The Coast Guard developed procedures to provide a linkage between the inventory
managers and part users by building on an existing Navy program - "Price Fighters".
For many years the Navy has operated a successful price challenge program. This
program encourages and rewards personnel for identifying any FSS part that is
overpriced. Since 1989, the Navy has allowed participation in this program by all
Coast Guard personnel. However, the Navy will not process challenges on Coast
Guard-unique parts managed solely by Coast Guard SUPCENs. To address the
suspected overpricing of these parts, submit challenges to the appropriate Coast
Guard SUPCEN. Through application of these two systems, personnel may
challenge the price of any part in the FSS.
f.
The price challenge program, coupled with its sister Spare Parts Breakout Program,
helps eliminate abusive practices of paying more than is absolutely necessary and
saves the customer and Government money. To a great extent, the wasteful
expenditure of funds, such as those revealed during the parts pricihg scandals of the
early 1980s, can be avoided. By providing a mechanism for addressing pricing
questions, personnel in the field can help lower costs and improve efficiency of
Coast Guard logistics.
6.
PROCEDURES.
a.
Any civilian or military member of the Coast Guard may "challenge" the price of
any part within the FSS which appears excessive. The basis of a challenge may be
the
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