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AFMD-84-79 1 (1984-09-28)

handle is hein.gao/gaobabnna0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE ' , ~WASHINGTON, D.C. Z0548 ACCOUWTING AND VINANCIAL SEPTEMBER 28, 1984 MANAGCMC1NT D IVLION 125409 The Honorable Jack Brooks Chairman, Committee on Government Operations House of Representatives Dear Mr. Chairman: Subject: Review of the Air Force Practice of Contracting Through the Central Intelligence Agency and State Department to Obligate Funds Prior to End of Fis- cal Year (GAO/AFMD-84-79) On April 24, 1984, you requested that we examine the legality and propriety of the Air Force practice of using the Central Intel- ligence Agency (CIA) and the State Department to enter into con- tracts to satisfy Air Force Intelligence's requirements for certain research studies before the end of the fiscal year. Your office also asked us to provide certain background information on this Air Force practice of contracting through the CIA and State. We agreed with your office that in evaluating this practice, first, we would determine whether the Air Force violated the Econ- omy Act, Anti-Deficiency Act, or any federal procurement regula- tions. Next, we would determine whether the contracts were awarded to meet valid Air Force requirements and whether any favoritism was involved in awarding these contracts. Based on the first phase of our assignment, we found the Air Force practice of placing orders with the CIA and State Department which, in turn, awarded contracts to accomplish this work, did not violate either the two acts or procurement regulations. This de- termination was made after we (1) researched applicable laws and regulations, (2) interviewed knowledgeable Department of Defense (DOD), Air Force, CIA, and State Department officials in the Wash- ington, D.C. area, and (3) reviewed obligation, contract, and pay- ment documents. Under our agreement with your office, we will not proceed with this assignment's second phase to avoid duplicating a current in- vestigation by DOD's Inspector General (IG) in response to another congressional request. To assist the IG staff in their evaluation, we have informed them of the results of our work and about the (392077)

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