Officials of the Carter administration, led by the Office of Federal Procurement Policy within the Office of Management and Budget, are queitly trying to reform traditional Government purchasing practices. Hamstrings on Government buying stem from two basic problems: (1) existing laws and regulations which favor formal advertising and concealed bidding rather than negotiation and (2) the legal rights of suppliers who lose a contract to file protests, thereby delaying procurements. For example, Government specifications are often unnecessarily tight so that only a limited number of suppliers can meet them. Although specifications were intended to protect the Government from poor quality goods, many have become antiquated and hinder competition. The proposed Federal Acquisition Act of 1977 would remedy some problems by requiring performance instead of detailed technical specifications and encouraging long-term contracts as well as off-the-shelf buying. The bill would also merge the separate military and civilian agency procurement codes. The Government's biggest buyers, the General Services Administration (GAS) and the Defense Logistics Agency (DLA), are beginning to analyze the cost of warehousing and distribution in deciding what items to stock and what to buy from commercial distraibuters. The Veterns Administration has found it more economical to allow hospitals to buy about two-thirds of their goods and services locally without help from central purchasing authorities. GSA is seeking additional discounts from suppliers who sell over a certain benchmark amount from their multiple award schedules. DLA officials have cited problems with implementing the commercial buying policy because of regulations regarding fair bidding and minority contractors. However, X-ray film has been successfully purchased under the new policies, and future plans include the purchase of towels and forklift trucks. The components of procurement costs are illustrated.