100 Chicago Bureau of Public Efficiency 



SUMMARY AND CONCLUSIONS OF PART TWO 



Methods of Purchase (exclusive of coal). 



1. Centralized purchasing is more advantageous than 

 decentralized purchasing in that it gives to the central 

 bureau a larger buying power. Larger buying power 

 usually secures lower prices. It also makes it possible to 

 maintain a better equipped purchasing plant and better 

 financial control. 



2. All of the Park Boards buy practically the same 

 kinds of commodities. Logical and economical organiza- 

 tion would therefore provide that all the buying be done 

 through one central agency and thus secure the advan- 

 tages of the combined buying power. Under the present 

 multiplicity of park governments, each Park Board does 

 its own purchasing. Moreover, the purchasing for each 

 Board has often been done by employees other than the 

 respective purchasing agents. Owing to such conditions 

 the buying has been in comparatively small amounts and 

 at comparatively high prices. 



3. Commodities have been purchased aggregating thou- 

 sands of dollars each within a single month without public 

 advertisement, written bids or written contracts. 



4. On all purchases, except unusually large orders, it 

 has been customary to solicit and receive bids by telephone. 

 In a large proportion of instances, only one or two bids 

 were requested. Telephone bids are conducive to fraud in 

 several ways. It is suggested that except on very small 

 orders both requests and bids be made in writing and 

 preserved as a matter of record. 



5. The Park Boards purchase large quantities of soil. 

 Payments for soil have often been based upon the number 

 of cubic yards as determined by the number of loads deliv- 

 ered. When soil is loosened and shoveled into wagons it 

 swells from 20 to 35 per cent. Payments based upon 

 wagon measurements have therefore exceeded the amounts 

 which should have been paid in about the same proportion 



