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PSAD-77-79 1 (1977-02-16)

handle is hein.gao/gaobaavqo0001 and id is 1 raw text is: DOCUMENT RESTIME 01161 - A07513201 (R-atrictedf:1-;-(/7 (Action of ORB Designed to Expand the Amount of Contracting Out of Functions vow Performed by Civil Service Employees). PSAD-77-79. B-158685. February 16, 1977. 3 pp. Report to Rep. Clarence J. Brown; by Elmer B. Staats, Comptrcller General. Issue Area: Federal Procurement of Goods and Services: ORB Guidelines for Relying on the Private Sector to Supply Federal Needs (1906). Contact: Procurement and Systems Acquisition Div. Budget Function: General Government: Other General Government (8C6). Organization Concerned: Office of Management and Budget; Civil Service Commission. Congressional Relevance: Rep. Clarence J. Brown. An Office of Management and Budget (OE) release and GAO plans for monitoring major developments v.cncerning the contracting out of functions nov performed in-house by Government employees were discussed. GAO reccmmended that ORB give ccnsideration to developing a series of rates tailored to each type of activity to be contracted out. It was also recommended by GAO that social security costs for private sector employees be computed on the dynamic normal basis, as are retirement costs for civil service employees. Findings/Conclusions: GAG continued to believe that the establishment and use of a series of tailored rates would re. ult in more accurate cost comparisons. Further evaluation of the Civil Service computer model used to calculate the retirement cost factor will be made by GAO to determine if it is practical to establish such rates. GAO continues to believe that estimates of the cost of contracting should include scme provision for potential oz future cost for benefits. GAO plans an evaluation of executive agency implementation of and compliance with the rules and regulations concerning contracting out for goods and services. Recommendations: Obtaining needed goods and services at the lowest possible cost is a sound public policy that must be given equal consideration to the policy of placing reliance on the private sector. The effective implementation of these policies requires that complete and accurate cost comparisons be made. (Author/SE)

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