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B-168560 1 (1971-03-26)

handle is hein.gao/gaobabktx0001 and id is 1 raw text is: COMPTq.LER GENERAL OF THE UNITED STATES _j ..::: . ... .. , , W=4,-U~m GToN. .- z,'- - RELEASED LW8991o Dear Mr. Steiger: MAR, In your letter dated January 23, 1970, you requested that we review the legality of the contingent fees paid by contractors under the Department of Labor's Special Impact programr in Los Angeles, California, to the investment banking firm of Dempsey-Tegeler and Company, Incorpo- rated, and that we look into the entire question of contingent fees paid to private companies who act as a liaison with the Federal Government. In your discussion with members of my staff on February 26, 1970, you stated that your interest was limited to contingent fees for contracts awarded under Federal manpower programs. By letter dated April 17, 1970, we advised you that, in our current evaluations of contracts awarded under Federal manpower programs adminis- tered primarily by the Department of Labor, we would: 1. Determine whether a substantial percentage of contractors indicated that contingent fees had been paid to firms or persons to help secure the contracts0 2. Look specifically for an indication as to whether contingent fees were paid in connection with contracts for the Food Service Industry Training Project, Incorporated, of Hartford, Connecticut, which administers a Department of Labor on-the- job training program for cooks, waiters, and waitresses under the Manpower Development and Training Act of 1962, as amended (42 U.S.C. 2571). 3. Consider recommending that the Secretary of Labor revise the Department's regulations to prohibit the payment of contin- gent fees for securing manpower training contracts, if our reviews showed that payment of contingent fees was a common practice0 We also advised you, by letter dated July 23, 1970, of our belief that the fees paid by the Special Impact program contractors in Los Angeles to Dempsey-Tegeler and Companyq Incorporated, were not in violation of the law or the Federal Procurement Regulations. In summary, our reviews over the past 12 months revealed no other payments of contingent fees to firms or individuals to secure any of 50TH ANNIVERSARY 1921-1971

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