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FGMSD-79-48 1 (1979-09-25)

handle is hein.gao/gaobaazvl0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHING4-ON. 0C. 205 [IC SEPTEMBER 25, 1979 RESTRI4CTIED.ZNt* eejd teGmig Acco n th If 'ce PcK.Ipt 6, the ba- of spcaflcapproval by the Oftise of Congresi*nal Relation.. The Honorable Russell B. Long Chairman, Committee on Finance United States Senate The Honorable Rebe.t Packwood Committee on Finance ~LE ~Si..D United States Senate You requested that we make several studies comparing7the rprcost of various services performed by the Federal Government with the cost of comparable services provided by private companieg This letter discusses day care services. During the conduct of our work, we advised you of the National Day Care Study sponsored by the Department of Health, Education, and Welfare and published in March 1979. This study was an intensive 4-year effort costing about $8 mil- lion which investigated the benefits and costs of critical day care features for children age 5 and under. Rather than replicating this extensive work, we reviewed and analyzed this study, as well as a previous GAO report--Opportunities- for HEW to Improve the Administration of Day Care Programs (HRD-78-81, Mar. 22, 1978)--and other pertinent reports in order to formulate our conclusions. The National Day Care Study demonstrated that the cost of non-federally-funded centers operated primarily by the private sector is substantially less than the federally-funded centers which are operated primarily by federally-subsidized nonprofit organizations. This contrast in costs is obvious in the following table, which was developed based on our inde- pendent analysis of the data in the final report of the day care study. 110666 O7~9-o FGMSD-79-48 (910360) B-163762 f4 -Z--

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