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B-178849 1 (1973-07-02)

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               COMPTROLLER GENERAL OF THE UNITED'ATES 5   ' .
                         WASHINGTON. D.C. 205)48 ,,          '




                                <z-JUL 2                       1973
                                     LM096306
B- 178849







The Honorable George E. Brown, Jr.                                    /
House of Representatives

Dear Mr. Brown:

     Reference is made to your letter dated June 5, 1973. and our
discussions with you and your staff, concerning the Air Force plans
to perform custodial services by contract at Norton Air Force Base, , '
Cali forhia. .... ........ .... . .. .. .. ...... ...... .......

     We have inquired into the Air Force's handling of these
services. We directed special attention to vour concern with the
possibilities that cost studies may have been developed subsequent
to a decision to contract and that quality of services may be per-
mitted to decline under a contractor.

     Our inquiry shows that the Air Force has established controls
to ensure that these key manpower areas of cost studies and cjualiLy
of performance are properly managed for custodial services.

     The Air Force studied its custodial services world-widhe and
found that in May 1972 the cost of direct labor by tie appropriate
Government Wage Board employees greatly exceeded the cost of
comparable local labor at 21 out of 22 installations sampled. For
example, the closest sampled installation to Norton was U, rch Air
Force Base, California, showing a ;4.30 hourly rate in wa,,ces and
fringe benefit.s for W-2 grade employees veCsus a S3.18 hourly rate
for indus try.

     Tn December 1972 the Air Force i.ssued i 1 ettr requ i 1- M: I I I
commands to cojntract ',;t o(dial  ittv-,  ect t.:'o  p ' I ], trll.;
prepared on :L-ii 1  ;i o m' ,qpaci .;,n:;  -,h 1 -  1 e L  !'I't'  (  ' ,  I,,
econoumi calI.  In,   la  h  1 ()7 1  r)toi  i r Po '(,  F, i r   Pa:3 t, o [ff ci ,-n 1  p)t L,: 1- 1
ll cost conilpi .i swl  iii i c, c o rui,innc  wi t- Ihft i   of   Ili.  'Il !  1 11, L , u
Circular t(i. A-7-() n, r, ' t'l r ctor  jhtit'diIlt't i  h[ i  11 1mt'(,
economical by ncirlv :2 mil lion  fl r  a  t Lhrc-vt.ir  po. iml.




                [076304

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