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NSIAD-84-122 1 (1984-08-03)

handle is hein.gao/gaobabnla0001 and id is 1 raw text is: bWIITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 -2L? RELEASED NATIONAL SliCURIY 4ND INTERNATIONAL AFFAI1VIION AUGUST 3, 1984 B-214583 The Honorable Norman Sisisky 124888 House of Representatives Dear Mr. Sisisky: Subject: Contracting Out Under OMB Circular A-76 at Selected Army and Navy Activities in Virginia (GAO/NSIAD-84-122) In your June 27, 1983, letter, you expressed concern about the recent increase in the number of Office of Management and Budget (OMB) Circular A-76 cost studies being made at selected Army and Navy activities in Virginia. These studies are used to determine whether needed government goods and services should be obtained in-house or by contract. You asked us to examine (1) the reasons for the substantial increase in A-76 cost studies at activities you designated, (2) the emphasis given readiness when reviewing a function for possible performance by contract, (3) the adequacy of most efficient organization studies, (4) the types and training of personnel used to conduct these studies and cost comparison studies, (5) the disposition of employees displaced by contracting, and (6) Office of Personnel Management regulations to determine if they preclude achievement of efficient staffing patterns. FINDINGS AND CONCLUSIONS Our review of the implementation of the OMB Circular A-76 cost studies by the Army and the Navy at the five activities showed that: --There has been increased emphasis by the executive branch since 1979 to implement OMB Circular A-76 because of the potential savings to the government by obtaining its goods and services in the most economical manner. Nationwide, the Army and Navy, in their efforts to implement the circu- lar, announced 3,071 cost studies in fiscal years 1979 through 1983. Of these, 381 were for activities in Virginia, of which 40 were at the five activities you designated. (392003) C1 6412(;r-