COMDTINST 4408.7
MAR 6 1995
existence of a less expensive substitute, knowledge of the cost to manufacture, or
just a "gut feeling" that the part is overpriced. Nevertheless, price challengers must
provide as much information on the part as possible in order to expedite processing
of the challenge. For example, a photograph or photocopy of the original or
replacement item beside a ruler for size perspective, dimensional drawings,
blueprints, or a new or failed sample of the item could be useful to the Price
Challenge Office in resolving price challenges.
b.
CG personnel can initiate a price challenge by submitting a Suspected Overcharge
Notification Form. The information shown in enclosure (1) is required for
submitting price challenges to either the Navy Price Challenge Office for any OGA
item, or Coast Guard SUPCEN for any Coast Guard managed item. Challenges may
be called in by phone, sent by telefax, or mailed to the applicable office. Telephone
numbers and addresses for the Navy Price Challenge Office and Coast Guard
SUPCENs are provided in enclosure (2). The location to report each price challenge
varies depending upon the inventory manager of the part being challenged.
Challenges for all OGA managed items are submitted to the Navy Price Challenge
Office. Likewise, price challenges involving Coast Guard-unique items shall be
submitted to the appropriate Coast Guard SUPCEN that manages that particular part.
Each Coast Guard SUPCEN has a Spare Parts Breakout staff which is responsible
for ensuring competitive pricing of spare parts.
7.
AWARDS.
a.
Successful price challengers may be eligible for cash awards from either the Navy
(OGA items) or the Coast Guard (Coast Guard-unique items). These awards are
based on the annual cost avoidance resulting from a decrease in the price of a
challenged part. The Navy Price Challenge Office will forward a disbursement form
to members for challenges producing a cost avoidance for the Navy.
b.
Likewise, challenges that result in cost reductions for a part managed by the Coast
Guard entitles the challenger to a cash award which is paid through the Coast Guard
Idea Express Suggestion System. All successful challengers for Coast Guard
managed items are eligible for an award based on the first year savings to the Coast
Guard.
8.
RESPONSIBILITIES.
a.
Area and district commanders, commanders of maintenance and logistics
commands, and unit commanding officers
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