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B-199499 1 (1981-07-22)

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                      COMPTROLLER GENERAL OF THE UNITED SrATES
                               WASHINGTON D.C. 2M48




B-199499                                        JUL 22 1981




The Honorable William V. Roth  Jr.
Chairman, Committee on Governmental
  Affairs
United States Senate

Dear Mr. Chairman:

     Your letter of April 7, 1981, requested our views on S. 719,
97th Ccngress, 1st Session, the proposed Consultant Reform and
Disclosure Act of 1981. This bill would, among other things

     --amend section 3109 of title 5, United States Code, to
       Clatify the authority for appointment and compensation
       of experts and consultants and

     --provide statutory guidelines concerning the award of
       contracts for the procurement of consulting services,
       management and professional services, and special
       studies and analyses.

     The General Accounting Office's (GAO) concern about the
Government's use of consulting services is evidenced by over 30
audit reports we have issued on this subject during the last 20
years. These reports identified the need for almost every major
Federal agency to better manage these services.  Although we
continue to believe that the proper use of consuliing services
is a legitimate and economical way to conduct Go ernment opera-
tions, we see little evidence that agencies are acting adminis-
tratively to correct abuses. Our recent report, Government
Earns Low Marks on Proper Use of Consultants, FPCD-80-48,
June 5, 1080, concluded that many of the same problems that
existed as far back as 1961 exist todav. Normally, we do not
support legislative remedies for problems that could be resolved
administratively. However, since executive branch agencies,
with few exceptions, have not acted administratively, we believe
congressional action is necessary. Accordingly, we can support
S. 719 if certain sucested changes are made.

     As you know, we did not support the previous version of
this bill introduced in the 96th Congress, S. 23B0, partly be-
cause of our concern that it could unduly constrain agencies'
ability to obtain valuable consulting expertise from the private
sector. :However, the current bill, S. 719, has incorporated

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