MANY FEDERAL AGENCIES, FOR WHOM GSA PURCHASES COMMON-USE ITEMS, HAVE COMPLAINED OF POOR QUALITY MERCHANDISE. ALTHOUGH THE EXTENT OF SUCH MERCHANDISE IS NOT KNOWN, MANY INSTANCES WERE NOTED WHERE DEFICIENT MERCHANDISE WAS IDENTIFIED ONLY AFTER RECEPTION AT A DEPOT OR SHIPMENT TO A USER AGENCY. EXAMPLES OF INFERIOR QUALITY GOODS WERE PARTIALLY FILLED PAINT CANS, TORQUE WRENCHES WHICH DID NOT MEET SPECIFICATIONS, AND PLYWOOD WHICH WAS TOO THIN. ORIGIN INSPECTIONS THAT WERE CONDUCTED BY GSA WERE DONE IMPROPERLY. NO CONTROLS EXIST TO PREVENT OR DETECT COLLUSION BETWEEN QUALITY CONTROL PERSONNEL AND CONTRACTORS. THE CUSTOMER COMPLAINT SYSTEM DOES NOT EFFECTIVELY IDENTIFY PRODUCT DEFECTS OR SATISFY USER AGENCIES. GSA SHOULD ESTABLISH A FORMAL TRAINING PROGRAM FOR QUALITY ASSURANCE INSPECTORS AND ENSURE THEIR CLOSE SUPERVISION. SYSTEMATIC INSPECTION ON A SAMPLING BASIS SHOULD BE APPLIED TO ITEMS RECEIVED, EVEN WHEN THE SUPPLIER IS CERTIFIED UNDER THE QUALITY APPROVED MANUFACTURERS PROGRAM. QUALITY ASSURANCE INSPECTORS SHOULD BE REQUIRED TO SUBMIT CONFLICT OF INTEREST STATEMENTS, AND ROTATION OF FIELD INSPECTORS SHOULD BE CONSIDERED TO REDUCE THE POSSIBILITY OF COLLUSION BETWEEN INSPECTORS AND CONTRACTORS. A COMPLAINT SYSTEM SHOULD ALSO BE ESTABLISHED WHICH WOULD PROMPTLY RESOLVE LEGITIMATE COMPLAINTS AND REPORT ACTION ON CUSTOMER COMPLAINTS FOR CONSIDERATION WHEN MAKING FUTURE PURCHASES. TESTING OF GOODS AT DESTINATION SHOULD BE EMPHASIZED UNTIL INSPECTIONS AT CONTRACTORS' PLANTS ARE IMPROVED. GSA OFFICIALS GENERALLY AGREED WITH REPORT FINDINGS. (AUTHOR ABSTRACT MODIFIED--RCB)