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EMD-81-144 1 (1981-09-14)

handle is hein.gao/gaobabcng0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 September 14, 1981 D4xGY AD MNLn SRESTRICTED Not to be reeased outside the General Accounting Ofh e oxcept 0 the besi ef epeeWfi epprmvl B-204698 Glue AO ef t 0009lr elom_.lu The Honorable James A. McClure, Chairman Committee on Energy and Natural Resources United States Senate Subject: The Department of Energy's Use of I Support Service Contractors to Perform Basic Management Functions (EMD-81-144) 116604 Dear Mr. Chairman: On October 29, 1980, the Chairman, Senate Committee on Energy and Natural Resources requested that we examine the Department of Energy's (DOE's) use of contractors to perform work involving basic governmental management functions. A previous GAO report 1/ indicated that some DOE contracts were written so that contractors could be performing these types of functions. At the time of that review, however, we could not determine if contractors were, in fact, performing basic management functions. Therefore, following the change in the Committee chairmanship and discussions with your staff, we directed this review effort toward identifying cases where such performance was actually taking place. The problem of contractors performing basic management functions for Federal agencies is not new. GAO has published several reports concerning this issue during the past 20 years, particularly in the area of consultant contracts.. Most recently, we issued a report entitled, Civil Servants and Contract Employees: Who Should Do What For The Federal Government? (FPCD-81-43, 6/19/81) which discusses the problem of contractors performing basic management functions from a Government-wide perspective; findings which closely parallel what we found at DOE. OMB is responding to that report by requiring additional management controls to assure Government contractors do not perform basic management functions. During this review we were able to identify several con- ditions which give DOE contractors sufficient latitude to per- form basic management functions. Specifically, we found that: i/The.Department of Energy's Practices for Awarding and Admini- stering Contracts Need to be Improved, EMD-80-2, November 2, 1979. 2 / ( L/(300542)

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