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093190 1 (1971-01-22)

handle is hein.gao/gaobacxbb0001 and id is 1 raw text is: Q~o 3l 10 fil- UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 7054 FEDERAL BUILDING 300 NORTH LOS ANGELES STREET Los ANGELES, CALIFORNIA 90012 Lieutenant General Samuel C. Phillips Commander Headquarters, Space and Missile Systems Organization £000 Air Force Unit Post Office>) Los Angeles, California 90045 Dear General Phillips: We have recently performed a limited survey of the uses made of contract feet paid to the Aerospace Corporation, El Sogundo, Califoinia, under the annual contract for scientific, engineering, and technical support of the Space and Missile Systems Oganization (MSO). As part of this work, we inquired into (1) the extent to which Department of Defense (DOD) funds were need to reimbuxse Aerospace for bid and proposal and other expenses relating to the deveopment of no4-DOD business, (2) the economy of continuing to lease automatic data recessing equipment (ADPE), (3) the working crpital impact resulting from the accrual of large amounts of unused vacation expensas, and (4) the adequacy of procedures estnblished to assure compliance with the compenpation limitation for officers and employees of Federal contract research conters (FCRC's) as imposed by Section 407 of Public Law 91-121 These issues were discussed with SAMSO officials at the completion of our survey; however, we thought it would be beneficial to summarize for you our observations concerning these matters* .o. DID AND PROPOSAL AND OTHER NEW BUSIN4SS DCLLENT EXPEL4SES At Aerospace, bid and proposal-type expenses have increased sub- stantially during fiscal year 1970. This primarily resulted from the terrinatinn of a mnjor Air Force progran cnd the snbseouent ret'v Lent of a celect nuvbr of Technial personnel fton this piogram to proposal efforts involvIng non-DOD work aieas. Correspondence available at Aerospace indicated that the reassignment plan was considered reasonable by General O'Neill. X~t.\I 91t 93/, 2/ 2 Th/ 41

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