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ID-78-3 1 (1977-11-16)

handle is hein.gao/gaobaawgk0001 and id is 1 raw text is: 0 ,41 4 8 - ( B 3 2 1 4 4 6 6 1 ( 1 ; J) g t United States Travel Service Contractual Relatioasbi with Discover America Travel Organizations, Inc, ID-78-3; 2-178249. November 16, 1977. 3 pp. + 2 appendices (1 pp.). Rcport to Sen. Daniel K. Inouye, Chairman, Senate Committee on Cuimerce, Science, and Tranportation: merchant Rarine and Tou.:ism ubcommittee; by Elmer 3. Statrs, Coptroller General. Issu, area: Personnel Management and Compensation: Imployte (onflicts of tnterest (301). Contact: Inter-ational Div. Budqet Functiou: Co%nerce and Transportation (400). urqunization Concerned: Departbant of Commerce; United States Travel Service. Congressional Reloance: Senate Committee on Ccmaeccer Siouence, and Transportation: Merchant arine and ?ourism Subcommittee. Authority: 18 U.SC. 201-08 tZupp. V). 15 G.S.C. 1525-27. Executive Order 11222. U.S. v. Mississippi Valley o., 364 U.S. 520v 562 (1961). An audit was conducted of *he participation of the U.S. Travel Servici in the Domestic Travel Mart. The guestion of whether thc- vap an apparent or a real conflict of interast in the U.S. Travel Service award of two contracts to the Discover America Travel Organi,ations, Inc. (9ATO) was investigated since the head of the Trav-sl Service, the former Assistant Secretary of Commerce for Tourism, was a member of the board of directors of DATO. As part of its promotion of travel to and within the United States, the Travel Service participates in two major industry trade marts operated annually bv DATO. The Travel Service has cosponsored nine International Pow Vou events and two Travel Marts through fees paid tc the organization and personnel assigned to assist the organization. Findings/Conclusions: In 1977, $25,000 was paid for che Domestic Travel dart held in Phoenix in May, and in prior years $10#000 was paid for the International Pow Now. No contract tee was paid this year for the International Pow Vow bacause of congressional concerns. In October 1976, the agencj contracted for DATO to coordinate a Government and industry travel and marketing program. The cost of the contract wan estimated at $269,000, but the contract was terminated after $5C,000 was spent following congressional inquiry. The agency pays an annual fee of $5,000 for membershil' with DATO. No real or apparent conflict of interest was tound regarding the former agency head's serving as a member of DATO's board of directors. It was estimated that the agency spent $68,000 on this year@s Domestic Travel Bart in Phoenix -.nd $51,000 on the International Po Vow in St. Louis. The agency did not request or obtain from DATO sufficient information on actual costs incurred to adequatky evaluate the need -.o contribute to such private undertakings. DATO said it

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