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LCD-78-316 1 (1978-05-05)

handle is hein.gao/gaobaaxmy0001 and id is 1 raw text is: DOCURNT RESO0I 06364 - [B17062341 . - r/2vh Benefits General Services Adainistzaticn Pzovides by Operating Cafeterias in Washington, D.C., Federal Buildings. LCD-78-316; B-114820. Bay 5. 1978. 3 pp. + 5 appendices (24 pp.). Report to Sen. Jonnlugs Randolph, Chai)mnan, Senate Committee on Environment and Public Works, by Elmer b. Staats, Comptroller Genami1, Issue Area: Pre Agencies maintaining Government Facilities Cost-Effectively? j1711). Contact: Logistics and Communications Div. Budget Function: General Government: General Property and Records manaqement (804). Orqanization Concerned: General Services Adminixtration; Government Services, Inc. Conqressionl Relevance: Senate Comaittee ci Erviroaaent and Public Works. Sen. Jennings Randolph. Authority, Public Buildings Cooperative Use Act of 1976 (P.L. 94-541; 90 Stat. 2505). Federal Property and Administrativ, Services Act cf 1949, as amended (63 Stat. 490). Randolph-Sheppard Act for the Blind. 40 U.S.C. 490(a). 35 Comp. Gen. 113. Executive Order 11458. CAB Circular 1-25. =41 C.F.R. 101. F.P.M.D. 101-21.205. B-177610 (1S73). 1-4689 (1924). Government Services, Inc. (GSI) oerates 32 cafeterias and 5 coffee shops in the Washington, D.C., area under contract vith the General seroices Administration 4GSA). The estimated commercial equivalent annual value cf benefits provided by the Federal Government for operating cafeterias and cotlee shops in the Washingtor area is about $9.5 million--$9 million for the space and -,tilities and S590,000 for equipment maintenance. Findinqs,'-:;oclusions: GSI had a loss oi about $210,000 for calendar year 1977 on its contract with GSA. If the $9.5 million of benefits are included, the total loss would be ahout 9%.7 million. Without these benefits, the cost of food tc cr.,temers could increase considerably, causing sasy cafeterias tt .lose. There appears to be no express statutory authorizaticn for operating Government-controlled cafeterias in public builOings. The practice of providing the space as a ccasideration for operating food-service facilities in Federal iuildimgs is not unlavful, contrary to public policy, o improper, even though the contractor nay ippear to have a competitive advantage over other food service operators in the vicinity cf Pederal cafeterias. Government-controlled cafeterias are intended primarily for use by Federal employees, but there are no legal restrictions barring the use of Federal cafeterias ty the public. Recommendations: The Administrator of GSA should provide for disclosure in GSA*s annual budget submission of the total benefits granted for operating federal cafeterias &ad coffee shops. (RRS)

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