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B-164250 1 (1973-02-23)

handle is hein.gao/gaobablbz0001 and id is 1 raw text is: --RCE no to he released outsidle the General )7- off-e excep t O; ,1, a s oDf speele approval 0%,LERot, th O'ffice of Lez~sLve Lakn a record ai which is kept COMPTROLLER GENERAL OF THE UNITE6 STATE5 RELEASED WASHINGTON. D.C. 20548 RELEASED = i-164250 FEB 2 1973 /$ / Dear Senator Allen: Reference is made to your letter dated January 29, 1973, and our subsequent discussions with your office concerning the planned eci A4d S tem Commands at Huntsi lie, Alabama, We visited Headquarters, U. S. Army Safeguard System Office and obtained data on the queries posed by your letter and your correspondents. The following information is keyed to the questions in your letter. I. The reorganization announced by Major General R. C. Marshall on January 11, 1973, had been approved by the Secretary of the Army. This reorganization was the basis for the Safe- guard fiscal year 1974 budget, which was approved by the Secretary of Defense. 2. The Government's policy for obtaining commercial services is controlled by Office of Management and Budget C'ifcular No. A-76. The policy is to rely on the private enterprise system unless the national interest requires a Government agency to provide directly the products and services it needs. In the planned reorganization of Safeguard, including the two commands at Huntsville, the Army presents a well- documented case of not only following the policy of relying on private enterprise but meeting thereby the requirements of Circular No. A-76 for economy and other aspects of national interest. 3. The strategic functions of Safeguard do not appear jeop- ardized by assigning responsibility for maintenance and supply to a contractor. The Department of Defense has applied similar concepts in areas such as air defense systems, missile systems and naval weapon systems. 4. The Army considered cost effectiveness in the total context of the Congressional limitation of Safeguard to one operational site. 3~1t60 G9~~

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