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DOCUMENT RESUME
07515 - [C28679751
Illegal Expenditure by the Army ro Replace Laundry and
Drycleaning Equipment. PSAD-78-113; B-178978. October 11, 1978.
8 pp. + 2 appendices (5 pp.).
Report to the Conqress; by almet B. Staats, Comptroller General.
Issue Area: Appropriate Consideration of All Factors in Deciding
to Make or Buy Needed Goods or Services. (1915).
Contact: Procurement and Systems Acquisition Div.
Budget Function: National Defense: Department of Defense -
Procurement & Contracts (058); National Defense (050).
Organization Concerned: Dopartment of ense; Department of the
Army.
Congqrej-'onal Relevance: House Committee on Armed Services;
Senate Coumittee on Armed Services; Congress.
Authority: Department of Defense Appropriaticn Ict [of] 1976
(P.L. 94-212). Anti-Deficiency Act (31 U.S.C. 665). Second
Supplemental Appropriation Act [of] 1952 (65 Stat. 765).
Departmeut of Defense Appropriation Act (of] 1955 (68 StL t.
337). Department of Defense Appropriation Act [of] 1970.
Department of Defense Military Construction Appropriat.on
Act [of] 1970, 83 Stat. 484. 83 Stat. 468. DOD Directivtw
5126.8. DOD Directive 4100.15. DOD Instruction 4100.33. 01B
Circular A-76. Army Regulation 235-5. Defense Acquisition
Regulation 13-101.8. S. Rept. 82-1036. H.R. 5650 (82nd
Cong.).
Laundry and drycleaninq services at Fort Carson,
Colorado, are provided by a Government-owned and -operated
facility. Usinq fiscal year 1976 funds, Fort Carson bouqht 21
aeu laundry or drycleaning equipment items and systems for over
$400,000 to modernize its facility. The Army did not determine
whether ;iundry and drycleaning services were available from
commerci-L sources at reasonable rates, and approval for
replacement of the equipment was not requested.
Findings/Conclusions: These expenditures were in violation of
the Department of Defense Appropriation Act of 1976 which
prohibits Government investment in laundry and drycleaning
facilities within the United States unless the Secretary of
Defense cortifies that commercial services are not available nt
reasonable rates. All disbarsements fo the purchase of
equipment were made against the fiscal year 1976 appropriation.
Since the amount of money specified under that appropriation was
not legally author4 zed, any expenditure made from those funds
was in excess of the amount availalle, and a violation of tke
Anti-Deficiency Act occurred. Recommendations: To preclude
similar violations in the future, the Secretary of Defense
should take action to review the adequacy of all policies,
procedures, and regulations that have been established in the
Department of Defense to implement the appropriation
restriction. (RRS)](ViewImageLocal?handle=hein.gao/gaobaayek0001&div=1&collection=&method=preview&ext=.png&size=3)