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PSAD-80-55 1 (1980-07-07)

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                           .......  specific  approval
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     UNITED STATES GENERAL ACCOUNTING OFFICE
            WASHINGTON. D.C. 20548


RELEASED


JULY 7, 1980


The Honorable Max Baucus, Chairman
Subcommittee on Limitations of Contracted
  and Delegated Authority
Committee on the Judiciary
United States Senate


Dear Mr. Chairman:

     Subject: j tudy of the Effects of Changes in the
               Contract Appeals Board System under the
               Contract Disputes Act of 1978J(PSAD-80-55)

     In your September 17, 1979, letter you asked us to
study the effects of changes in the contract appeals board
system under the Contract Disputes Act of 1978, Public Law
95-563, November 1, 1978.

     During our initial audit work, we reviewed Boards of
Contract Appeals activities at four executive agencies. We
talked to the chairman of each board visited and to officials
from the Office of Federal Procurement Policy (OFPP), Office
of Management and Budget, and Office of Personnel Management
(OPM). We also attempted to get responses to the 14 specific
questions in your letter.

     On the basis of the results of our initial efforts, we
believe it is too soon to analyze how the Contract Disputes
Act has affected the board system. Overall, Federal policy
is still being developed, and relatively few cases have yet
been processed under the new procedures. Therefore, as agreed
with your office, we discontinued our audit work and, instead,
summarized what has been done to implement the act and iden-
tified factors affecting that implementation. We addressed
your 14 questions in the enclosure to this letter.

ACT TO RESOLVE
CONTRACT CLAIMS

     In 1972 the Commission on Government Procurement re-
viewed the Federal appeals board process. It noted that


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(950585)


MOCUREMINT AND 1YITM1
  ACQUIILTION DIVISION

      B-198877


113011


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