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B-130515 1 (1972-10-05)

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         REsTRJCrD - Not to be released outside tdIqenera!

         by the Office of Congressional Relate, a Ke i  a h





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         B-13051SLM090774

Dear Senat'or Bayh:

     Your letter of October 18, 1971,, requested that we ex-
amine certain irregularities reported as existing at the De
partment of Labor (DOL) Atterbury Job Corps Center near ]on-
Edinburg, Indiana.
     The irregularities involved blanket purchase agreements
for the acq~uisitioni of supplies, rehabilitation projects un-
dertaken to nmprove the Center's facilities and DOL ware-
housing, at the Center, of supplies and equipment transferred
from closed Job Corps centers.

     We reviewed applicable DOL policies and instructions,
contracts for operation of the Center and warehouse, and con-
tractor records.  We interviewed the individuals who reported
the alleged irregularities and responsible DOL and contractor
officials.  In an attempt to determine what happened to a
shipment of machine tools referred to in a letter from one of
the concerned individuals, we contacted personnel of the Gen-
eral Services Administration (GSA), Chicago regional office,
Property Management Disposal Service.

     We have not given DOL, GSA, or the contractors involved
an opportunity to formally examine and comment on this report.
However, we have discussed our findings with DOL and contrac-
tor officials and have mentioned the corrective actions they
have taken or proposed.

BACKGROUND

     Title I, part A, of the Economic Opportunity Act of 1964
(42 U.S.C. 2711) established a Job Corps for low,
advantaged young men and women and authorized tial
ment of residential ance nonresidential centers in which en-
rollees would participate in intensive programs of education,
vocational training, work experience, counseling, and other
activities. The Job Corps program was initially administered
by the Office of Economic Opportunity (OBO); this responsibil-
ity was delegated by QEG to DOL in July 1969. DOL's Manpower
Administration is responsible for administering the program.
Within the Manpower Administration, the Director, Job Corps,
is the resporsible administrative official.

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