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B-174701 1 (1971-12-22)

handle is hein.gao/gaobaafdr0001 and id is 1 raw text is: ACOMPTROLLER GENERAL OF THE UNIT STA WASHINGTON. D.C. 205 B-174701 DEC 22 1S I IIII f IIIIIIIIIIIIIIIIIIIII I JIIIII Dear r. Kunzig: LM095469 17 Our review of the General Services Administration (GSA) operation of heating plants=1n the Washington, D.C., area showed that the rate charged for steam sold did not include factors for denreciation and repair and improvement costs for the heating plants. The unrecovered costs for fiscal year 1970 totaled about $259,000--$136,000 for sales to quasi- official agencies and other organizations and $123,000 for sales to certain Federal agencies. The GSA Special Services Branch operates the Central, West, and Virginia heating plants in the Washington metro- politan area. GSA is authorized to furnish steam from these plants to Federal buildings and to other specified buildings, such as those of the American Red Cross, the Corcoran Gallery of Art, the Federal Reserve System, and the Smithsonian In- stitution. The cost of steam operations, exclusive of administrative expenses, depreciation, and repair and improvement costs of the steam plants, was $6.1 million for fiscal year 1970. The three heating plants distributed 4,189,666 thousand pounds (M-lbs) of steam in fiscal year 1970 to GSA-managed Federal buildings, to non-GSA-managed Federal buildings, and to buildings occupied by quasi-official agencies and other organizations. SALES TO QUASI-OFFICIAL AGENCIES AND OTHER ORGANIZATIONS GSA sold 501,278 l4-lbs to quasi-official agencies and other organizations. The billing rate was $1.55 for each M-lbs, and the total sales were about $780,000. The billing rate included the cost of labor, materials, supplies, and a surcharge to cover administrative expenses. The rate did not include an amount for depreciation and repair and improvement costs. The Office of Management and Budget Circular A-25 states that a reasonable charge (user charge) should be made to each recipient for a Government service received above and beyond that accruing to the public at large. Agencies are required to report annually on services provided. 50TH ANNIVERSARY 1921-19710

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