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RED-76-15 1 (1975-09-17)

handle is hein.gao/gaobaaawr0001 and id is 1 raw text is: 




                                                   GENERA Sr r,$

                                                       SEP   7   .

 °D'          REPORT OF THE                          LIBRARYstEM


               COMPTROLLER GENERAL

COF THE UNITED STATES



                                                             LM096818





               Procurement Of

               Rail Passenger Cars

               For The New Haven Railroad



               Urban Mass Transportation Administration

               Department of Transportation


               The Urban Mass Transportation Administra-
               tion granted Connecticut $49.6 million to
               assist in purchasing 100 passenger cars from
               General Electric for $63.9 million. The pro-
               curement contract did not adequately protect
               Federal interests and the Government prob-
               ably will incur interest costs of about $2 mil-
               lion by funding the contractor in advance.
               Although the Urban Mass Transportation
               Administration acted to protect the Govern-
               ment, GAO believes that the agency's inter-
               pretation of its directives, patterned after the
               Federal procurement standards for grantees,
               resulted in limiting the direction the agency
               provided in this grant. Federal agencies cur-
               rently are reviewing these standards. GAO
               recommends that more specific grantee con-
               tracting procedures be developed.


               RED-76-15                          SEPT. 1 7, 1975

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