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PSAD-80-79 1 (1980-09-19)

handle is hein.gao/gaobabbcp0001 and id is 1 raw text is: I LLEIASED J -Pj outsdo the General .~~~bZS' 0 y b'1~c specific approval ..... ....1 13 . 1 UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 PROCUREMENT AND SYSTEM S ACQUISITION DIVISION B-200369 SEPTEMBER 19, 1980 The Honorable Carl M. Levin it Chairman, Subcommittee on hil oversight of Government Management I Committee on Governmental Affairs United States Senate 113501 Dear Mr. Chairman: Subject: LArmy's Contracting Out of Installation Support Functions at Selfridge Air National Guard Base, Mt. Clemens, Michigaj7(PSAD-80-79) This is our response to your June 11, 1980, request that we examine the Army's tentative decision to contract out the installation support functions at Selfridge Air National Guard Base (SANGB), Mt. Clemens, Michigan. As agreed with your office on June 18, 1980, our main emphasis would be to evaluate the cost comparison to see if it was done properly. The Army cost comparison for SANGB showed that it could save about $3.1 million over a 3-year period if the functions were contracted out as opposed to being done in-house. Our review disclosed a few discrepancies in the Army cost compari- son which increase the potential savings that could be real- ized through contracting out. We believe the potential sav- ings would be over $3.8 million. Our cost estimate, compared with that of the Army, is shown in enclosure I. Contracting out at SANGB would affect 146 civilian employees--127 full time and 19 part time. All the part-time employees and probably 12 of the full-time employees could become unemployed, with the remainder being absorbed by the local major Army agency. In the process of absorbing these employees, the Army agency would probably need to terminate the employment of another 16 full-time personnel. Thus, there is a potential for 28 full-time and 19 part-time people becoming unemployed. However, there would probably be no overall reduction in employment for the SANGB area (950617)

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