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MWD-76-68 1 (1976-02-04)

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                 COMPTROLLER GENERAL OF THE UNITED STATES
                           WASHINGTON. D.C. 20348


              RELEASED
                                      FEB 4 1976



  The Honorable Alan Cranston
  Chairman, Subcommittee on
    Health and Hospitals
]-ommittee on Veterans' Affairs           2,
/United States Senate

  Dear Mr. Chairman:

       This report, our second and final report pursuant to your
  request of August 24, 1973, concerns Veterans Administration ) '
  (VA) contracts awarded to Big 4 Construction Company for medi- P.3o
,Zcal research trailer construction at VA's Brentwood Hospital
/in Los Angeles, California. You expressed interest in finding
  out whether VA knew of alleged poor job management by Big 4
  when granting time extensions on Big 4's trailer contracts;
  the effect at Brentwood of Big 4 working concurrently on
  other VA contracts; the effect delays had on Brentwood's medi-
  cal research program; and the additional money VA spent to
  provide alternative medical research space, because of delays
  in completing the trailers.

       Enclosure I looks at these four areas as well as VA's
  improper use of operating fund appropriations to partially
  finance the research trailer construction. Briefly, we found:

       --VA may not have been fully aware of any poor job man-
         agement by Big 4 when VA approved an initial 37-day
         time extension; however, VA rejected four additional
         time extension requests, totaling 133 days, because of
         poor job management by Big 4.

       --Big 4 was working concurrently on three other VA con-
          tracts, which may have contributed to Big 4's delays
          at Brentwood.


                                                       MWD-76-68






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