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PLRD-82-66 1 (1982-04-12)

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                    UNITED STATES GENERAL ACCOUNTING OFFICE
                           WASHINGTON, D.C. 20548



AND PtEADINKS$ DIVIION ItSTItCTt) - Not to be released outside the General
               Accounting Offle except on the basis of specific approvali
               by the Office of Congressional Relations A
   B-206492APL1292




   THue Hofoal Rayesnoatves

   Hou of ep rsentats C   a

        Subject: Army's Contracting Out of Laundry
                  and Educational Testing Services at
                  Fort Carson, Colorado (PLRD-82-66)

        Your August 21, 1981, letter requested us to evaluate the
   Army's decision to contract out for laundry and educational
   testing services at the Army Education Center, Fort Carson,
   Colorado. Specifically, you asked us to determine

        --whether the Army followed the policies and procedures
          outlined in Office of Management and Budget (OMB)
          Circular A-76,

        --the sources of contract funding, and

        --whether the contractors have performed satisfactorily.

        We found that Fort Carson complied with the provisions of
   Circular A-76. However, Fort Carson officials were not aware
   of recently issued Department of Defense (DOD) guidelines and,
   therefore, did not perform certain actions called for by the
   guidelines in contracting for educational testing services.

        Funding for the contracts was generally obtained by trans-
   ferring unspent funds from in-house programs to commercial
   contracts. Also, contractors' performance generally has been
   satisfactory; however, the laundry contractors have occasion-
   ally had laundry returned for rework at no additional cost.

   OBJECTIVES, SCOPE, AND METHODOLOGY

        Our objectives were to examine the Army's decision to
   contract out for laundry and educational testing services at
   Fort Carson and to obtain information on the sources of funding
   and contractor performance. We interviewed Army officials from
   Fort Carson and from the Omaha District of the Army Corps of
   Engineers. We also interviewed representatives of the American
   Federation of Government Employees, Local 1345, at Fort Carson.


                                              (942086)

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