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B-133044 1 (1970-12-04)

handle is hein.gao/gaobabkrk0001 and id is 1 raw text is: 0 \COMPTROLLER GENERAL OF THE UNITED STATES o '\ X' WASHINGTON D C 2 O-8 q B-133044 by the @Vc cc C C k r by the DistffbutGro1 Ojcsn Fl uch, OAS Dear Senator McIntyre: RELEASED E Reference is made to your letter dated March 18, 1970, and the enclosure from a constituent who requested an audit by the General Accounting Office to ascertain the validity of his arguments relative to the cancellation of a laundry contract between the constituent's firm and the White River Junction, Vermont, Veterans Administration (VA) hospital. The constituent raised certain questions regarding the appropriateness of the VA decision which resulted in laundry services for the White River Junction VA Hospital being supplied by the Manchester, New Hampshire, VA hospital laundry. As agreed with your Office, we examined into two of the constituent's questions. (1) was the consolidation of laundry ser- vices at the Manchester VA Hospital based upon accurate cost informa- tion? and (2) was the consolidation made in accordance with Government regulations? It was agreed that we would obtain cost data from the VA records on the cost of providing laundry services under the present arrangement. Our review was conducted at the VA hospitals in White River Junction, Vermont, and Manchester, New Hampshire, and at the VA Central Office in Washington, D.C. CHRONOLOGY OF EVENTS LEADING TO THE CONSOLIDATION An official of the Manchester VA Hospital informed us that, while studying ways to improve Manchester's laundry operations and reduce costs, he noted that the White River Junction VA Hospital's contract laundry costs appeared to be high. He irformed us that he had made a cost study in December 1964 of the feasibility of combin- ing the Manchester and White River Junction hospital's laundry operations at the Manchester VA Hospital. He stated that the study showed a potential savings from such a consolidation and that a report on the study was submitted to the VA Central Office early in 1965. VA Central Office officials informed us that the VA Central Office also had made a cost study to determine whether a consolidation of the White River Junction hospital's laundry services with those at

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