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B-130515 1 (1970-04-06)

handle is hein.gao/gaobabkqe0001 and id is 1 raw text is: ~~~~~s --O.DC 04 69--w RELEASED B-130515 j4 i April 6, 1970 Dear Mr. Tiernan: We have completed the study requested in your letter of October 23, 1969, of the renovation of the Concentrated Employment Program facility in Providence, Rhode Island° A report that includes our findings, con- clusions, and recommendations and the Department of Labor's comments and proposed disposition of this matter is enclosed. In substance, our review indicated that the contract dated December 18, 1968, entered into between the Director of the Concentrated Employment Program and Raymond Construction Coo, Inc°, violated the terms of the contract between the Department and Progress for Providence--the sponsor of the program--as well as the statutory prohibition against cost- plus.a-percentage-of-cost system of contracting (41U.S.C. 254(b)). Neither the Concentrated Employment Program Director nor Progress for Providence had authority to enter into the contract of December 18, 1968, for the additional renovations without the approval of the Department of Labor, However, the Department has authority under the contract to rat- ify actions taken, and to approve reimbursement to Progress for Providence under the contract modification of February 5, 1969, as it deems appropri- ate for the benefits the Government received from the renovation work. We are recommending to the Secretary of Labor that the Department determine the liability of the Federal Government with respect to costs incurred for the renovation of the Providence facility and assist Progress for Providence in resolving the outstanding issues under the contract with Raymond Construction. We are recommending also that the Department place greater emphasis on its continual monitoring of Concentrated Employment Program activities, especially those relating to the acquisition of accept- able facilities for the program. In commenting on our draft report, the Department of Labor states that it is not responsible for financial or other commitments made by a prime sponsor, which are not provided for in the Department's contract with the prime sponsor. The Department states that its present position is that it will authorize costs for renovation in the general amount which was available for renovation under the Department's contract with Progress for Providence as modified on February 5, 1969, and that this decision was arrived atafter careful consideration of the equities of the situation and of the Department's responsibility to not allow costs outside the contract. We find no basis for objecting to the Department's proposed settlement of this matter. istati il~uhoiecot o eovto i h gnrl mut hc

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