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GGD-93-9R 1 (1992-12-23)

handle is hein.gao/gaobackfh0001 and id is 1 raw text is: 'GAOg United Statesi (3 O Geneal Accounting Office Washington, D.C. 20548 Generl Government Division 8-251751., December 23, 1992 lB IIIIII l ll' The Honorable Bruce F. Vento 148398 House of Representatives Dear Mr. Vento: At your request, we have reviewed the Resolution Trust Corporation's (RTC) noncompetitive contract with Mr. John T. Garrity. As agreed with your office, this letter discusses 1whether (1) RTC followed its policies and procedures for the QQ issuance of the noncompetitive contract to Mr. Garrity, (2) a ' the contract's payments were properly supported, and (3) Mr. Garrity's contract involved an employer-employee relationship •Z that would be prohibited by federal procurement rules for personal services contracts. RESULTS IN BRIEF RTC issued a noncompetitive contract to Mr. John T. Garrity .8 0 for consulting services. Although RTC complied with its noncompetitive contracting procedures, it did not comply with its separate requirements for contractor registration, certifying to fitness and integrity regulations, and completing a background investigation before issuing the 0 contract. Also, RTC paid $3,468.75 for work done before the contract was signed. At your request, we reviewed Federal Acquisition Regulation (FAR) standards for determining whether a contract creates a prohibited employee/employer relationship between an agency m cUand a contractor to see how those standards would have applied to RTC's contract with Mr. Garrity. It was not clear from our review how those standards would have applied to Mr. Garrity's contract. More significantly, those standards and FAR's basic prohibition against personal services contracts do not apply to RTC because RTC is not subject to FAR. BACKGROUND On November 13, 1991, RTC issued a noncompetitive contract to Mr. John T. Garrity for providing senior level support in organizational structure, delegations of authority, workflow processes and other related areas. No detailed statement of work was prepared, and no specific products were required for completion of the contract. According to the RTC contracting GAO/GGD-93-9R, RTC's Garrity Contract 55619?

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