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119783 1 (1981-10-13)

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                 '1~.       WASHINGTON, D.C. 20548     .


* TtRNATIONAL DIVISION                               13 OCT 1081

     The Honorable M. Peter McPherson
     Administrator, Agency for International
       Development
                                                     119783
     Dear Mr. McPherson;

          On July 9, 1981, we notified you that the General Accounting
     Office was initiating a survey of personnel staffing practices of
     the Agency for International Development.  During the course of
     this work, we learned of several recently completed internal
     Agency studies that covered this subject such as the Task Force
     Report on Programming and Implementation Processes, the Financial
     Management Survey of Current Overseas Mission Staff Levels, the
     AID portfolio management analysis, and also the on-going Finan-
     cial Management Task Force study of overseas mission staffs.
     These studies, supplemented by AID testimony at this year's con-
     gressional hearings, indicate that AID is taking or is planning
     to take a number of actions aimed at improving personnel prac-
     tices and performance.  Accordingly, we have decided to postpone
     further work at this time to enable you to address the related
     Agency findings and to act on those recommendations you deem most
     appropriate.

          Some of the concerns noted in these studies include:

          --the lack of a correlation between a mission's program
            and the size of its staff;

          --the lack of objective criteria for staffing decisions;

          --the question of rational assignment of foreign service
            personnel to Agency headquarters;

          --the staffing implications related,.to suggested remedies
            to improve project implementation;

          --the need for specialists with technical skills and
            in-depth knowledge of their fields; and

          --the various problems which arise with contractor per-
            sonnel performance overseas.

          We believe that attention should also be focused on whether
     the Agency has a justified need for the large number of Partici-
     pating Agency Service Agreements (PASAs) and Resource Support
     Service Agreements (RSSAs); and whether all these agreements are
     actually cost-beneficial.  In fiscal year 1980, the level of
     Agency PASA/RSSA activity reportedly totalled $39.3 million; PASA

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