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B-114826 1 (1971-04-14)

handle is hein.gao/gaobaafhw0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE 30 WASHINGTON, D.C. 20548 / CIVIL DIVISION APR 14 1971 B- 1148 26\\\\\ll\\l\lll\\l\\\l\\l\ Dear Mr. Carlson: LM095583 Our examination of the financial statements of Federal - Prison In u-T-ti-&,TiC€. (FPI), for fiscal year 1970 included examinations at the central office in Washington, D.C., and at five institutions located at Danbury, Connecticut; McNeil Island, Washington; Seagoville, Texas; Tallahassee, Florida; and Terminal Island, California. We observed certain practices which required the atten- tion of local officials. These practices were brought to their attention, and copies of our letters to these officials were made available to you. In addition, we found that there was a need to revise certain accounting, procurement, and other prac- tices requiring corrective action by the central office. These iiatters are discussed below. QUESTIONABLE AWARD OF VOCAIONAL TRAINING CONTRACTS During fiscal year 1970 the central office entered into two negotiated contracts for services to be performed at the Federal Reformatory for Women at Alderson, West Virginia. On August 4, 1969, the central office negotiated a $50,000 con- tract with Keyboard Training, Inc. (KTI), to teach 100 inmates at Alderson keypunch skills, office routines, and interviewing techniques. In the following month the contract was increased to about $66,000 to provide for the rental, shipping, and re- lated costs of 14 keypunch machines. On March 9, 1970, the central office negotiated a contract in the amount of $6,840 with Urban Resources, Inc. (URI), to perform an evaluation of the impact of the training received under the KTI contract. The FPI manual provides that Federal Procurement Regula- tions be applicable to FPI. The regulations Drovide that no procurement in excess of $2,500 shall be made by negotiation if the use of formal advertising is feasible and practicable under the existing conditions. In our opinion the contracts with KTI and URI should have been awarded on the basisof for- mal advertising. IQ965 73 ( 50TH ANNIVERSARY 1921-1971 , 7

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