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B-181303 1 (1974-11-05)

handle is hein.gao/gaobaaeep0001 and id is 1 raw text is: RESTRICTED -- Not to be released outside the General Accountii. Office except on the basis of specific approval by'the 'i'fice of Congressional Relations, COMPTROLLER GENERAL OF THE UNITED STATES 8- lao33 WASHINGTON, D.C. 2Mu RELEASED NOV 5 - 1974 The Honorable Patricia Schroeder House of Representatives Dear Mrs. Schroeder: By letter dated May 17, 1974, and later meetings with your office, you requested that we review certain Community Action Agency (CAA) contracts funded by the Office of Economic Opportunity (OEb) and performed by Contracting Corporation of America. The contracts, total- ing $25,000, were awarded to help five Colorado CAAs in Adams, Boulder, El Paso, Larimer, and Weld Counties to ponvert from private nonprofit to public agencies. Ac- companying your request was an article from Cervi's Rocky Mountain Journal of May 8, 1974, which stated that: --CAA officials believed that OEO would grant funds for contracts only with the Corporation. --OEO officials exerted influence to get CAAs to sign contracts with the Corporation. --OEO could perform the contracted work within OEO due to proqram cutbacks. --The Corporation was not registered in Colorado to do business at the time of the contracts or later. --A conflict of interest was present since the Cor- poration hired a close friend of the OEO Deputy Regional Director to help complete the contracts. Your office also asked for information about an investigation made by OEO's Inspection Division resulting from the same news report. We made our review at OEO's Denver regional office; CAAs in Adams, Boulder, and Weld Counties; and the Colorado Office of Human Resources. As your office agreed, this letter summarizes information provided your staff on August 2, 1974. In summary: --There was no evidence that OEO directed the CAAs to deal only with the Corporation. 9- O5 oqo'os BEST DOCUMEN-/ fViLI.BLF B-181303

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