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B-186072 1 (1979-10-31)

handle is hein.gao/gaobabjpk0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 201 7 B-186072 Eldon H. Crowell, Esq. Crowell and Moring L 1100 Connecticut Avenue, NW, Washington, D.C. 20C36 Dear Mr. Crowell: In the analysis accompanying your letter to me of September 19, 1979, and in our September 25 meeting, you have taken excepticn to a recent report by GAO's Procurement and Systems Acquisition Division to Congressman Thomas H. Luken concerning theiWrocurement of depleted uranium penetratorsg This report (PSAD-79-88, June 13, 1979) concluded that it 0,p would be more economical for the Air Force to have the pene- AC4 trator work performed 4y a Government-owned, contractor- operated (GOCO) facilty--the F eed terials Prducton 3 Center /--rather than by the existing c6-nractors--Aero et-Geneal Corporation and Ecneywell, Inc. This conclusion was based on a comrpar s6n of the COCO plant awout-of-pocket costs for the,'I penetrator production with the full costs incurred by the existing contractors. Your primary objection is that the GAO report's out-of-pocket cost analysis with respect to the GOCO facility violates OMB Circular No. A-76 (Revised, March 29, 1979). Specifically you maintain that the report in effect recommends a Onew start* of a GOCO facility, and therefore requires, under the terms of Circular A-76, a full cost analysis for the GOCO as well as the existing contractors. Our Office of General Counsel considered this issue during its review of the report and concluded that the recommendation to use the Feed laterials Production Center for the penetrator work did not come within the rather narrow range of GOCO matters covered by the Circular, i.e., a new start* or expansion of a GOCO facility was not involved. Since we regarded revised Circular A-76 as being inapplicable, it was not discussed in the report. j/ The Center, located at Fernald, Ohio, is operated by the National Lead Company of Ohio under the aegis of the Department of Energy.

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