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MWD-76-9 1 (1975-08-29)

handle is hein.gao/gaobaaaqp0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.O. ZW B-164031() AUG 29 1975 V7qI The Honorable John Brademas, Chairman Select Subcommittee on Education ' Committee on Education and Labor House of Representatives Dear Mr. Chairman: In accordance with your September 17, 1974, request, we have reviewed certain \allegations made by Mr. Robert F. Drucker, a former employee of the National Institute of Education, Department of Health, Education, and Welfare, in his undated statement entitled On Welfare of the Elite or Why Inflation Came to Call. The statement alleges ques- tionable management practices, including: 1. Noncompetitive contract and grant awards. 2. Inadequate control of procurement actions. 3. Possible conflict of interest in certain procure- ments. 4. An unreasonable ownership arrangement and associated educational laboratory costs. 5. Underutilization of space at an educational laboratory. The first three issues relate to Institute activities, and the other two relate to Office of Education activities be- fore the Institute was established in August 1972. We reviewed Institute contract files, congressional hear- ings and legislation relating to the educational research facilities program, and Institute procurement policies and procedures. We held discussions with officials of the Depart- ment, educational laboratory personnel, an Office of Education consultant, and other individuals who might have knowledge of the situation. We also reviewed Institute and Department investigative reports addressing the issues raised by Mr. Drucker and con- sidered them in our examination. We contacted Mr. Drucker, who declined to elaborate upon his allegations. We did not examine the circumstances of his dismissal from the Institute. F JAMWD -76-9

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