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MWD-76-10 1 (1975-08-22)

handle is hein.gao/gaobaaaqt0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, M.C. 2058 UNITP B-164031 1l AUG 22 1975 0qJ The Honorable J. J. Pickle House of Representatives iZ Dear Mr. Pickle: As you requested on September 18, 1974, we have reviewed the allegations of Mr. Robert F. Drucker, a former employee of the National Institute of Education, Department of Health, Education, and Welfare. Mr. Drucker, in his undated statement titled On Welfare of the Elite or Why Inflation Came to Call, raised issues concerning a construction grant to the Southwest Educational Development Laboratory centering upon the ownership arrangement and the reasonableness of certain associated acquisition costs. We reviewed Institute grant files; discussed the trans- action with Institute, General Services Administration, and laboratory officials; reviewed congressional hearings and legislation related to the educational research facilities program; and examined Office of Education and Institute con- struction grant policies and regulations. We also reviewed Institute and Department investigative reports that addressed Mr. Drucker's allegations. Our exam- ination did not include the circumstances resulting in Mr. Drucker's dismissal from the Institute. We contacted Mr. Drucker but he declined to elaborate on his allegations. The Cooperative Research Act of 1954 (Public Law 83-531, as amended) authorizes an educational research facilities pro- gram to make grants to construct and equip educational re- search facilities. The Office of Education administered the education research facilities program from its inception in 1965 until August 1972, when the Institute assumed responsi- bility. During this period the Office reviewed all facility grant proposals and awarded seven grants. An Institute of- ficial said the Institute's role in the program was largely confined to reviewing construction progress reports, approv- ing the payment of incurred costs, and handling grant close- outs. The Southwest Educational Development Laboratory, in- corporated in May 1966, is a nonprofit educational research and development corporation located in Austin, Texas. In MWD-76-10 VJs , 09('9.2 3 I

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