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CED-79-67 1 (1979-04-12)

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REPORT BY THE U S.



General Accounting Office


Review Of Selected Contracts Awarded

By The Cincinnati Service Office,

Department Of Housing And Urban

Development



The Department of Housing and Urban Devel-
opment's Cincinnati Service Office awarded
three contracts at inflated prices for grass-
cutting, painting apartment interiors, and
tiling apartment floors in HUD-owned multi-
family housing projects. These services are
normally provided by or contracted for by
project managers but were transferred to the
service office for centralized procurement.

GAO believes that HUD's assumption of these
responsibilities was inappropriate because it
weakened the project managers' responsibility
for and control over project operation and
maintenance.

GAO is making several recommendations to
resolve the deficiencies noted, including re-
turning the responsibility for grasscutting,
painting, and tiling to project managers.







                                                          109066



                                                                 CE D-79-67
                  -Iccou 4' NAPR IL 12, 1979

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