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093324 1 (1972-05-31)

handle is hein.gao/gaobacxec0001 and id is 1 raw text is: UNITED STATES GENERAL AgCOUNTING OFFICE WASHINGTON, D C 20548 GENERAL GOVERNMENT DIVISION May 31, 1972 Dear Mr. Sampson. We have reviewed the repair and improvement (R&I) program administered by the General Services Administration (GSA) to maintain, repair, remodel, convert, and extend public buildings Our review was made at the central office in Washington, D.C , and at the regional offices in San Francisco, California, and Washington, D C. Our review included discussions with officials of selected Federal agencies where R&I projects were performed Our review disclosed that (1) R&I funds were used to finance parts of new construction projects, (2) R&I projects were started without obtaining congressional approval as required by law, (3) total project costs were not disclosed in prospectuses and reports, and (4) a need exists to improve the planning of R&I work. These matters are discussed in more detail in the following sections. R&I FUNDS USED TO FINANCE PARTS OF NEW CONSTRUCTION PROJECTS GSA used R&I funds rather than construction funds to finance parts of the construction work of two buildings because of the shortage of con- struction funds. The work subsequently was completed and financed with R&I funds on the basis that the structures were accepted as complete and included in the GSA building inventory. In January 1967 GSA awarded a contract for $5.5 million to construct a Federal Building in Sacramento, California. GSA elected to omit from the contract paving, landscaping, sprinklers, and related work. The con- struction contractor had bid $63,000 for the paving work and $102,000 for the landscaping and sprinkler work In August 1968 GSA awarded a contract for the paving work which was financed from R&I funds in the amount of about $75,000, or $12,000 more than had been bid by the building construc- tion contractor The building was occupied on October 15, 1968 In June 1969 GSA awarded another R&I contract for the landscaping and sprinkler work which was financed from R&I funds in the amount of $122,000, or $20,000 more than had been bid by the building construction contractor. By omitting the paving, landscaping, and sprinkler work from the construction contract and later awarding separate R&I contracts for this work, GSA incurred additional costs of $32,000 and, in effect, augmented construction funds by $197,000. 0 qS'

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