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B-165504 1 (1970-03-10)

handle is hein.gao/gaobabksf0001 and id is 1 raw text is: WASHINGTON 0 C 205483 B-165504 RELEASED MAR i o 1971 Dear Mr. Wold; Reference is made to your letter of January 29, 1970, transmitting a copy of a letter dated January 8, 1970, which you received from Mr. Russell L. Donley of Western Engineers-Architects, Inc. Mr. Donley's letter refers, in substance, to questions raised in an article in the Consulting Engineer Magazine, a copy of which he enclosed, relative to the decision of the Federal Aviation Administration (FAA) to continue to obtain airport obstruction survey hats from the-Coast and Geodetic Sur- vqy.__ather than to procure such charts from private industry. In your letter you referred to a review of the airi6 bstriktion chart program performed by this Office for Congressman Frank M. Clark and requested that we inform you regarding the results of our work in this area. We first commented on the cost of the airport obstruction chart program in a report to the Chairman of the House Committee on Merchant Marine and Fisheries (B-165504, December 10, 1968). The Chair mn had requested that we make a study, in accordance with the principles set forth in Bureau of the Budget (BOB) Circular No. A-76, of (1) the costs of obtaining airport obstruction charts from the Coast and Geodetic Sur- vey, compared with the costs of obtaining such charts by contract with private industry on the basis of proposals received in response to FAA's solicitation of May 2, 1968, and (2) the added costs which would be in- curred for evaluation of the contractor's performance. On the basis of our study, we concluded that, under the proposed alternatives, it would have been more costly to the Government if FAA had contracted for the airport obstruction charts with the private com- pany who submitted the lowest technically responsive proposal. Our conclusion, combined with a supporting comparison of estimated program costs--contract operations versus Government operations--generated considerable concern in the private engineering community. This concern has been commented on in letters to various members of the Congress and in editorials in trade magazines. We were subsequently requested by Congressman Clark and several other members of the Congress to respond to such comments questioning (1) the logic of the cost comparison prin- ciples set forth in BOB Circular No. A-76, (2) the validity of certain cost elements included in the cost comparison set forth in our report to the Chairman, and (3) other matters relative to the airport obstruction N( \ 7

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