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LCD-75-438 1 (1975-05-08)

handle is hein.gao/gaobaabcw0001 and id is 1 raw text is: 7. 0 UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 LOGISTICS AND COMMUNICATIONS q7o3¢ DIVISION B-182672 MAY 8 1975 LM097038 The Honorable Lou Frey, Jr. House of Representatives Dear Mr. Frey: Your November 11, 1974, letter concerned a food service cost comparison study being made at Patrick-Air Force Base, Florida. In discussions with your office, we agreed to provide information on (1) the accuracy of the Air Force's study, (2) the basis for the Air Force's estimated 3-year savings by contracting for food services, and (3) the impact of the contract operations on Patrick's civilian food service employees. BACKGROUND Office of Management and Budget Circular A-76, Policies for Acquiring Commercial or Industrial Products and Services for Government Use, datea August 30, 1967, sets forth the Government's general policy of relying on the private enterprise system for goods and services. Executive departments and establishments must rely on commercial sources unless this results in higher costs, impairs military training or readi- ness, or disrupts or materially delays programs. Department of Defense 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 determining whether to operate their own commercial or industrial activities. Such activities must be reviewed periodically to determine whether the least costly method is being used. As required by Office of Management and Budget Circular A-76, the Air Force reviewed its operation and administration of food preparation - - and serving facilities. The review concluded that at certain installa- tions military personnel were not required and that the type needed (in-house civilian or contractor) would be based on cost comparisons. Therefore, in October 1974, Patrick Air Force Base and several other installations were instructed to make cost comparisons to determine whether food service should be provided by in-house civilians or by contractors. LCD-75-438

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