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, .''.COMPTROLLER GEi4.r ' . otrTiii LINI iE) u t TATrS
f% , ,'-ti JV WA.IIIGTOIN. D.C. Z05411
B,,17 4793 c.'.tobu; 27, 1972
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Dear bc. Chairman: LM096262
1.1 re's oon to y-r .'.......-t rr OtvoI P,-obor 7 1971, and
,,,. 3 , k.f.l. O.-ce, lio hlave obtained infor.ria-
64011 oni the ,'tC-. of actio2 :>u -., ! ,c Air -,orco
...or ,, ....x contract at kC'nold
Enginicor Ifi-f. .. .. DS~vo161 e: n% Cko:Tbs, ,. (J~f3). a !rd to develop an. h.-.oue
on-rivion of tho Center. ,,n'o oau ,JY i tarj 19/2 d iscus[ions in
your oficoC; we have boon .t, :.1 Air Fo:?o actiono en those
M ittero.
TEaxly in 1972, Air Force offie:l adviod uo thy inten.d
to solio.t compeotitI.ve bidding on tho !ZDC coritract, conpare in-11uae
cost cstia at , a i-anst the lowoo.-t acceptablo bld, and than adopt the
most economical o,thod ofcrf-ncc * A.t o, ,'rthor concidoration
they concluded in late ...er 1.972 th.t opcru-ions at .LDC would
continue under AiY'Q, incoroorated, the incz.ibont contractor.
Although Air Force offici- .ls e.prosoed concern about the long
incmbency of the contractor 4'.nco 1950, they believe that highc:;t
priority progro womuld be im or.i.] byr ronlov.l of the contractor
before fical year 1975. Thoy bclieve that (1) the dcranding work-
load at AEDC precludes the introduct .on of a Cuccoswor contractor,
and (2) the Air Force could not attract sufficient hey manageraent,
profesoional and toclnical pocrronnel for an i.,-house operation,
even from the incumbent contractor, without dearadation and disrup-
tion of cvrrent programs.
At the present tie we are revonirlng the m!naagem-nt of contract
versus in-house operations in selectod Federal agencies and we will
be pleased to provide you with a copy of our report when the review
ia completed.
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