About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-165504 1 (1970-01-15)

handle is hein.gao/gaobabklx0001 and id is 1 raw text is: I, y i LEaG tERALQF THE-UN ITED STATES / WASHINGTON D C 20548 B- 65504 RELEASED JAN1i5 1970 Dear Senator Proxmire: Reference is made to your letter of December 18, 1969, transmitting a report prepared by Ernst & Ernst which you received from the Consulting Engineers Council of Wisconsin. The report contains a study of the cost of the Federal Aviation Administration's airport obstruction charts pro- gram. In your letter you requested our comments relative to this study and suggested that it might be of some assistance to us in a study we are presently conducting to compare the advantages and logic of various interest and discounting techniques used for project and program evaluation. As indicated to you in our letter dated August 11, 1969, we made a study of the comparative costs of procuring 150 airport obstruction charts required for 1969 on an in-house basis versus a contracted basis. Our study consisted primarily of a review of cost data prepared by the Coast and Geodetic Survey and furnished to Federal Aviation Administration for use in its cost comparison. In addition, Federal Aviation Administration obtained bids from private industry and selected the lowest technically responsive proposal for use in its cost comparison. The results of our study were included in our report to the Chairman, Committee on Merchant Marine and Fisheries, House of Representatives (B-165504, dated December 10, 1968). The Ernst & Ernst study differs in certain material respects from the cost comparison included in our report. The Ernst & Ernst cost comparison includes in-house costs on the basis of a full-cost allocation concept, whereas, our report includes in-house costs computed by the incremental cost method prescribed in Bureau of the Budget Circular No A-76, a method which we considered appropriate. Our cost comparison showed that it would have been more costly to the Fedeial Government if Federal Aviation Adminqstration - contracted for the airport obstruction charts with the private company which submitted the ltt -nica yr.cpaj Q y nsroosal. The Ernst & Ernst basic cost com- parison produced results similar to ours in that it showed that procurement of the charts from private industry was more expensive than from Government sources. However, in its report Ernst & Ernst indicated that the financial effect on the Government of contracting airport obstruction charts to pri- vate industry could range from increased costs of $200,000 to possible 1~~~~ 0 9

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most