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DOCUMENT FESUME
04313 - [B3354609]
Contracting for Military Exchange Concessions. FPCD-77-79;
B-148581. November 30, 1977. 21 pp.
Report to Rep. Dan Daniel, Chairman, Nonappropriated Fund Panel,
House Committee on Armed Services: Investigations SubcommAittee;
by Elmer B. Staats, Comptroller General.
Issue Area: Federal Personnel Management and Compensation:
Moralv, Welfare, and Recreation Activities (312).
contact: Federal Personnel and Compensation Div.
Budget Function: National Defense: Department of Defense -
Military (except procurement & contracts) (051).
Organizaticn Concerned: Department of Defense.
Congressional Relevance: House Committee on Armed Services:
Invest.igations Subcommittee; Senate Committee on Armed
Services.
Authority: Service Contract Act of 1965. Rehabilitation Act of
1973. Wagner-O'Day Act. P.L. 87-849, sec. 2. 18 U.S.C. 283.
18 U.S.C. 207. 37 U.S.C. 801. 15 r.S.C, 631. A.S.P.R. 1-706.
A.S.P.R. 1-702. Small Businesses. Haircuts. DOD Directive
5500.7.
Contracts to commercial businesses to run concessions
on military installations are awarded to responsive businessep
offering the most favorable prices or fees, regardless of
business size . The military exchanges have no policies or
'?rocedures specifically to protect small businesses by using
aonappropriated funds to procure their services although they
have policies orocurements made with appropriatpd funds.
Findings/Concl Review of the Army and A'r Force Exchange
Service contrac -nagement showed that small businesses
successfully com. antracts, but large businestqs have
received contracts le a greater share of some personal
services in recent ye cocedures were adequate to keep
contractors from bi', , and there was no evidence that
former employees un, luenced concession contracting.
Haircut prices were re...able, but Army recruit haircut prices
should be kept low throughout basic training. Recommendations:
The Secretary of Defense should require the Arny and Air Force
Exchange Service contracting officers: to adequately document
reasons why contracts are awarded early; to make sure that
documentation to suppirt contract changes is adequate for making
such determin-tions at the time of the change and for
postevaluation; and to offer reduced prices on follow up Army
recruit haircuts. (Anthor/SC)](ViewImageLocal?handle=hein.gao/gaobaawip0001&div=1&collection=&method=preview&ext=.png&size=3)