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![handle is hein.gao/gaobabaca0001 and id is 1 raw text is: 11122-T
COMPTROLLER GENERAL. OF THE UNITED STATIES
WASHINGTON, D.C. 2054S
B-196817
The Honorable John Glenn
Chairman, Subcommittee on Energy, Nuclear
Proliferation, and Federal Services
Committee on Governmental Affairs
United States Senate
JANUARY 8, 1980
1 II III ]]
111225
(f 0
Dear Mr. Chairman:
Subject: LFunding of Grievance/Arbitration Costs at
GOCO Facilities7(FPCD-80-32)
Your letter of July 26, 1979, reiae.st.dthat we examine
the manner in which Federal agencies reimburse/fund Government-
owned, contractor-operated (GOCO) facilities for costs as-
sociated with the grievance and arbitration process. You
were particularly concerned about an allegation made by the
Oil, Chemical, and Atomic Workrs union at a Department of
Energy (DO-E) facility in Portsmouth, Ohio, tfiat thearrange-,
meff tunrder'which the operator of the facility--Goqodyear
atomic Corporatigon--passed on the costs of resolving griev-
ances to the Federal Government was having an adverse impact
on labor-management relations. You wanted us to determine
whether the method used for reimbursing cost associated
with the grievance procedures was contributing to a breakdown
in labor-management relations at Portsmouth and whether this
problem was occurring at other GOCO facilities.
In addition to DOE, the Army, Na., and Air Force own -(
GOCO facilities; and the NaTio-n-alAeronautics-a-nd S-e A6CO
Administration has a facility wii, atough not considered
a GOCO operation, has the characteristics of one. All of
these agencies fully reimburse the contractor for its share
of grievance/arbitration costs that may arise at the facil-
ity while under contract with the Federal Government. These
costs, which we found to be small in relation to the operat-
ing costs of the facility, are allowable under Federal pro-
curement regulations and the agencies consider them a normal
cost of doing business.
GOCO contracts and costs are reviewed by Government
agencies and organizations. The Defense Contract Audit
(964150)
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