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HRD-81-49 1 (1981-01-30)

handle is hein.gao/gaobabbtm0001 and id is 1 raw text is: 





GAO
United States General Accounting Office           Human Resources
Washington, DC 20548                              Division


B-194928                                         JANUARY 30,1981



The Honorable Chairman
Subcommittee on Labor-
   Management Relations
 Committee on Education and Labor
 House of Representatives                            114868

 The Honorable Gladys Noon Spellman
 House of Representatives

      Subject: LReview of Contractors' Pension and Other
                Benefits for Employees Working at N    iaal

         V.46,  Scientific and Technical Information
                Facility3(HRD-81-49)

      In response to Congresswoman Spellman's February 28,
 1980, request and the Subcommittee's March 6, 1980, request,
 we have reviewed the allegations made by Mrs. Ruth I. Hong,
 a former professional employee of the National Aeronautics
 and Space Administration's (NASA's) Scientific and Technical
 Information Facility (STIF). On May 1, 1979, NASA selected
 the Planning Research Corporation (PRC), McLean, Virginia,
 as the new contractor to operate STIF, and on June 8, 1980,
 PRC took over operation of the facility. The Congresswoman
 and Subcommittee's request letters state that, according to
 Mrs. Hong's claims, PRC will discontinue making contributions
 for pension benefits for the employees at STIF and will make
 no contributions for pension benefits for 3 years.

      The Congresswoman and the Subcommittee also requested
 that we determine whether PRC followed the Office of Manage-
 ment and Budget's Office of Federal Procurement Policy (OFPP)
 guidelines prohibiting wage busting of service contract em-
 ployees. Wage busting is the practice of lowering employee
 wages and fringe benefits by incumbent or successor contrac-
 tors, to be low bidders or offerors on Government service con-
 tracts, when the employees continue to perform the same jobs.


                                                    (207344)



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