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LCD-75-407 1 (1974-10-04)

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                 COMPTROLLER GENERAL OF THE UrNIT:D STATES
                          wASHINGTON, D.C. 20548


   B-180966                         OCT  4 1974


04  he Honorable Henry B. Gonzalez

   House of Representatives

   Dear Mr. Gonzalez:

        In your April 12, 1974, letter you asked us to review
   the Air Force's recent decision to contract for food service   -
   operations at Lackland Air Force Base. Specifically, you
   asked that we (1) determine the validity of the cost com-
   parisons used by the Air Force, (2) identify the basis for
   its estimated savings, and (3) compare the cost of contracti-n
   for this service with the cost of using Government civilian
   or military personnel.

   BACKGRCUND                iEST DOCUMENT AVA LABLE

        Office of Management and Budget Circular No. A-76,
   Policies for Acquiring Commercial or Industrial Products
   and Services for Government Use, August 30, 1967, sets
   forth the Government's general policy of relying on the
   private enterprise system to supply its needs. Executive
   departments and establishments must rely on commercial
   sources for products and services, unless this results in
   higher costs, impairs military training or readiness, or
   disrupts or materially delays programs. Department of
   Defense (DOD) Instruction 4100.33, dated July 16, 1971,
   implements this policy and establishes procedures and
   criteria for the military departmenTs and Defense agencies
   to use in making determinations concerning comnmercial or
   industrial activities which they operate. Such activities
   must be reviewed periodically to determine whether the
   least costly method is being used.

        In March 1971 Air Force Headquarters asked the Air
  Training Command (ATC) to determine whether it would be
  less costly to provide food services at Lackland using
  civilian personnel rather than a private firm. Previously,
  food services were provided primarily by military personnel.
  Because Lackland is a basic training facility, it was decided
  that, as part of their military training, approximately 220
  airmen basic traine s would be used in th- food service Oper-
  ation, in addition to Air Force civilian or contractor
  personnel.
       hc - 7 -go

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