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RCED-83-144 1 (1983-04-28)

handle is hein.gao/gaobabmyr0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 April 28, 1983 RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION ~ ~ ~~~~I lllllllillIIIIUlll The Honorable Harold Washington 1191 House of Representatives 121293 Dear Mr. Washington: Subject: Examination of Allegations Concerning the Chicago Housing Authority (GAO/RCED-83-144) In response to your March 24, 1982, letter and subsequent discussions with your office, we examined three allegations con- cerning the Chicago Housing Authority's (1) limiting competition in insurance contracting, (2) paying unnecessary or excessive amounts for garbage removal, and (3) not receiving full value for modernization expenditures. As agreed, we did not address several other allegations you identified because of an ongoing Justice Department investigation of the Authority's elevator contracts and supply and equipment accountability or because of actions already underway at the Authority when you requested our review. In summary, we found that: --While the Authority obtained insurance bids, it limited the number of bidders. Further, the Authority did not, until January and February 1983, develop insurance speci- fications needed to encourage greater price competition and, as a result, may have paid higher insurance rates than necessary. --The Authority obtains city garbage services to the extent available and is improving its garbage contract manage- ment. However, the Authority may not have always secured the low bidder for scavenger service due to inaccurate garbage volume estimates. Further, the Authority had not attempted to recoup potential overpayments to scavengers resulting from erroneous garbage volume counts. --The Authority has received over $138 million in moderniza- tion funds since 1968 and spent $95 million. However, we could not readily verify that the modernization improve- ments were made because Authority recordkeeping made it difficult to trace the receipt and use of goods and services; the modernization improvements were for less (383226) ,IL

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