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DOCUMENT RESUOE
07242 - rB2567582) (Restricted)
[Written Procedures Needed To Guide Personnel in Dealing with
Investigations of Contractors]. August 31, 1978. 3 pp.
Report to Elsa A. Porter, Department of Commerce: Assistant
Secretary for Administration; by John Laudicho, Associate
Directcr, Community and Economic.Development Div.
Contact: Community and Economic Development Div.
Organization Concerned: Department of Comserce; Vesern Economic
Development Corp.
Congressional Relevance: Rep. George Killer.
In response to a congressional inquiry, certain
information was obtained about the Western Economic Development
Corporation (VEDCO), a local business develepaent enterptise in
Califcrnia funddd by the Department of Commercees office of
minority Business Enterprise. Concern was expressed that the
Department of Commerce reneved VEDCO's contract while it was
under investigation by the Department of Justice. Comuerce's
renewal of the HEDCO ccntract was not in viclaticn of
procurenent regulations because the regulations do not
specifically prohibit contracting with firos which are under
investigation for possible criminal violations. In addition, the
Department of Commerce lacks formal written procedures to guide
its personnel in dealing with investigations of Commerce
contractors. It is a matter of the contracting officer's
subjective judgment as to what should be done when the officer
is informed of an investigation which could affect a contracting
decisicr. The Department of Commerce should establish written
procedures which establish: the responsibility of the Office of
Investigations and Security for notifying agrncies within the
Department of invnstigations which could affect their
activities, the policy for distributing copies of investigative
reports to such agencies, and the responsibility of contracting
officers when informqd of an investigation which could affect
contracting decisions. (RRS) .](ViewImageLocal?handle=hein.gao/gaobacxrp0001&div=1&collection=&method=preview&ext=.png&size=3)