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PSAD-80-17 1 (1979-12-07)

handle is hein.gao/gaobabaat0001 and id is 1 raw text is: ~~, ~~ UNITED STATES GENER L ACCOUNTING OFFICE 1CPT? WASHINGTON. D.C. 20548 PROCUREM ENT AND SYSTEMS [-1Ca~- or uu 0 ~ ACQUISITION DIVISION DiM E .17 B-158685 RELEASED - I.... The Honorable Tony P. Hall RELASE ------- House of Representatives 111094 Dear Mr. Hall: Subject: Lontracting Out of Laundry Services at Wright-Patterson Air Force Base, Ohio7 t] (PSAD-80-17) In response to your August 22, 1979, request, we investi- gated an allegation that the contracting out of laundry serv- ices by the Department of the Air Force at Wright-Patterson ? Air Force Base, Ohio, might not be cost effective. You also requested that we investigate the use of handicapped and hard-to-employ personnel in the laundry. We reviewed the contract files, the cost comparison which supported the contracting-out decision, and other pertinent records and correspondence. We also interviewed responsible Air Force Logistics Command officials and the Federal employee who made the allegation. The following is a summary of our findings. CONTRACT PERFORMANCE IS COST EFFECTIVE Based on its cost comparison which showed that contract- ing out for laundry services would result in a 3-year cost savings of about $30,000, the Air Force awarded two contracts on August 10, 1979, to provide laundry services for the base medical center and other base activities. We reviewed the cost comparison, using the same criteria as the Air Force, and agree that contracting out for laundry services costs less than obtaining this service in-house. We estimate, however, that the 3-year savings will be about $387,000. A major portion of the difference between the Air Force's estimated savings and ours results from an inaccurate Air Force estimate of the number and type of in-house employees required to produce quality laundry service. The Air Force estimate was based on the equivalent of about 15 full-time (950563) Q+