Government Accountability Office — B 106190 6
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GENERAL SERVICES ADMINISTRATION
Contents
Page
AUTOMATED DATA AND TELECOMMUNICATIONS SERVICE
Opportunities
for improving
management of local
FEDERAL SUPPLY SERVICE
Opportunities
for savings
in the procurement
NATIONAL ARCHIVES AND RECORDSSERVICE
Ways to improve records management practices
ernment
PUBLIC BUILDINGS SERVICE
Participation
certificates
obtainable
for long-term
telephone
125
125
service
126
126
of tab paper
in the Federal
sold at higher interest
Government bonds
rates
128
Gov-
128
130
than those
VARIOUS DEPARTMENTSAND AGENCIES
Opportunities
for reducing the cost of constructing
and operating
health facilities
Improvement needed in use of formal advertising
procedures
for
procurement
Need for Federal agencies to improve solid waste management
practices
Differences
in administration
of relocation
assistance
program
Revisions
needed in financial
management policies
of the Federal
Government's
Automatic Data Processing
Fund
130
193
199
_
205
213
215
GENERAL
SERVICES
ADMINISTRATION
AUTOMATED DATA AND
TELECOMMUNICATIONS
SERVICE
Opportunities
for
of local
telephone
improving
'service
management
The Federal
Telecommunications
System
(FTS),
which
is managed
by the
General
Services
Administration
(GSA), provides,
among its many services,
intercity
and local
telephone
service.
As part
of this
telephone
service
GSA manages
over 400 switchboards
in the United
States.
At 153 of these
switchboards
GSA manages
4,634
local
service
trunks,
costing
an estimated
$989,000
annually.
Periodic
traffic
studies
provide
a measure
of the traffic
volume,
in part,
determine
the number
of local
service
trunks
required
at
which,
a switchboard.
However,
limitations
of these
studies
restricted
their
usefullness
to GSA's management
for achieving
optimum
economical
and efficient
service
and providing
it on an equal
basis
to all
customers.
GSA and telephone
company studies
(1) were not performed
at all
switchboard
locations,
(2) had not included
all
local
trunks
managed
by GSA
at each location,
and (3) sampling
periods
were too limited
at some locations.
Also,
telephone
company studies
were not frequent
enough
to disclose
seasonal
changes
and growth
or decline
trends.
The different
methods
used to convert
traffic
volume
into
trunk
requirements
produced
dissimilar
results
when applied
to the same statistics.
GAO estimated
that
one method
would require
78 fewer trunks-For example,
costing
$25,400
annually-than those proposed
by telephone
companies
using
However,
telephone
company
another
method
at 10 selected
switchboards.
reports
did not include
sufficient
detailed
information
for GSA to independently
evaluate
or recompute
the information.
GAO proposed
that
the Administrator
methods
and procedures
for determining
with
telephone
companies
for improved
(3) instruct
regional
offices
on the
conversion
to trunk
traffic
studies,
changes,
and (4) expand and implement
of GSA (1) establish
standard
trunk
requirements,
(2) negotiate
traffic
studies
and statistics,
evaluation
and/or
performance
of
requirements,
and implementation
of
internal
control
procedures.
GSA's response
to material
included
in this
report
was in general
agreement
with
GAO's findings.
GSA is currently
preparing
a report
of
(B-146864,
Mar. 19, 1973.)
actions
taken
in response
to this
report.
125
GENERAL
FEDERAL
SUPPLY
Opportunities
the procurement
SERVICES
ADMINISTRATION
SERVICE
for
of
savings
in
tab paper
GAO examined
into
the procedures
for procuring
marginally
punched,
continuous
forms
(tab paper)
because
an estimated
$100 million
is spent
annually
by the Government
for tab paper for use with
over 6,700
computers
at 1,700
locations.
GSA is responsible
for procuring
the Government's
tab paper but has
delegated
authority
to the Government
Printing
Office
(GPO) to procure
most
GSA purchases
and stocks
six commonly
used tab paper
of the tab paper.
forms.
GPO annually
awards contracts
against
which installations
place
within
prescribed
dollar
limitations,
for tab paper not available
orders,
from GSA stock.
The GPO contracts
are awarded
to all
responsive
suppliers
on a nationwide
basis.
GAO examined
fiscal
year 1971 tab paper purchases
of $6.5 million
that
The most favorable
prices
for tab paper were
were made by 45 installations.
obtained
by six installations
purchasing
their
tab paper
in volume
under
Prices
paid by the six installations
were about
competitive
contracts.
$500,000,
or 22 percent,
less than the lowest
prices
available
under
the
GPO contracts
for the same volume
of paper.
Most
year from
requirements
installations
procure
their
tab paper periodically
throughout
the
the GPO contracts
rather
than estimating
their
annual
tab paper
and purchasing
in volume
under competitive
contracts.
Although
installations
are required
to obtain
their
tab paper
from
the lowest
priced
supplier
under
the GPO contracts,
more than half
of the
installations
obtaining
tab paper under
the GPO contracts
had made purchases
from other
than the lowest
priced
supplier.
On total
orders
against
GPO
GAO found that
the prices
exceeded
those
of the
contracts
of $2.2 million,
If this
condition
is representative
lowest
priced
suppliers
by $54,000.
of all
reported
orders
against
GPO contracts
totaling
$11.8 million
for the
year ended November
1971,
the costs
of tab paper were $300,000
more than
if purchased
from the lowest
priced
sources.
In addition,
some installations
were purchasing
carbon
tab paper when narrow-carbon
paper may have
use.
Installations
used GPO contracts
to purchase
$600,000.
If narrow-carbon
paper had been adopted
$600,000
cost could
have been reduced
by $172,000,
To realize
the opportunities
for savings
in
Government's
tab paper
GAO suggested
that
GSA:
--Instruct
installations
to determine
and GSA or GPO use this
information
competitive
contracts
or authorize
contracts
directly.
126
higher
priced,
widebeen suitable
for their
wide-carbon
paper
costing
for use in all
cases,
the
or 28 percent.
the
procurement
of
the
their
annual
tab paper needs
to make volume
purchases
under
the installations
to award such
GENER4L SERVICES ADMINIST.RATION
FEDER4L SUPPLY SERVICE (continued)
in conjunction
with GPO, a more competitive
--Consider,
such as making awards of
awarding the GPO contracts,
used types of tab paper on a geographic
basis to the
offering
the lowest prices for each type of paper or
number of multiple
suppliers
to be awarded contracts
basis.
method of
the more commonly
single supplier
by limiting
the
on a nationwide
--Instruct
heads of departments
and agencies to establish
procedures
for systematic
monitoring
and internal
reviews of recent and ongoing
procurements
to identify
use of other than the lowest priced paper
suitable
for installations'
needs.
GSA agreed with our suggestions,
but GPO was concerned that the methods
GAO had proposed for awarding the GPO contracts
would not result
in more
competition
and lower prices.
GAO recognizes
that other alternatives
may
should be made to
be available.
GAO believes,
and GSA agrees, that efforts
develop a method of awarding the GPO contracts
under more competitive
conditions.
127
GENERAL
NATIONAL
ARCHIVES
Wavs to
uractices
imorove
records
in the Federal
SERVICES
ADMINISTRATION
AND RECORDS SERVICE
management
Government
GAO reviewed
the effectiveness
Service
(NARS) of GSA in improving
Government
because
of the substantial
preparation,
handling,
and storage.
costs
of paperwork
have increased
Similarly,
the Government's
record
cubic
feet
and now total
about
30
Records
Centers
are at an alltime
feet.
As a result,
storage
space
panded by 30 percent.
of the National
Archives
and Records
records
management
programs
throughout
the
increases
in the costs
of paperwork
GAO estimated
that,
since
1966,
Federal
from $8 billion
to $15 billion
a year.
holdings
have increased
by about
4 million
million
cubic
feet.
*Holdings
by Federal
high
and now total
over 11.5 million
cubic
has become critical
and may have to be ex-
NARS has had limited
success
in persuading
agencies
to correct
weaknesses
in their
records
management
programs.
One reason
is that
NARS
identifies
needed
improvements
and recommends
rather
sweeping
changes
without showing
corresponding
savings,
a factor
of vital
concern
to agency
management.
Another
reason
for the limited
success
is that
NARS has never
exercised
the authority
contained
in Public
Law 90-620
to report
to the
President,
the Congress,
or the Office
of Management
and Budget
(OMB),
a
particular
agency's
poor records
management
program,
even though
the NARS
evaluation
teams consistently
have found serious
weaknesses
in agencies'
programs.
In addition,
NARS could be more effective
in minimizing
the time
that
records
are stored
in Federal
Records
Centers
by establishing
closer
surby developing
a better
method
veillance
of agency records
control
schedules,
of evaluating
the validity
of the record
retention
periods
specified
by agenand through
better
procedures
for removing
from storage
those records
cies,
that
are eligible
for disposal.
GAO suggested
that
NARS and GSA:
--Point
out how agencies
NARS recommendations.
could
save
money
if
--Develop
criteria
describing
circumstances
nesses
or deficiencies
in agency records
President,
the Congress,
or OMB.
-- If
an agency fails
after
a reasonable
time
nesses
in its records
program
on the basis
form the President,
the Congress,
or OMB.
--Monitor
schedule
agencies
showing
more closely
to see that
retention
periods
for all
they
implement
when NARS would report
management
programs
to
to
of
correct
serious
this
criteria,
they maintain
their
records.
--Develop,
a method
to evaluate
on a pilot
basis,
at centers
and to provide
agencies
with
feedback
lishing
more realistic
retention
periods.
128
would
weakthe
weakthen in-
an up-to-date
records
usage patterns
as a basis
for estab-
GENERAL SERVICES
NATIONAL
ARCHIVES
AND RECORDS SERVICE
--Revise
procedures
at centers
are destroyed
promptly.
GSA and NARS have
suggestions.
(B-146743,
initiated
Aug.
13,
ADPIINISTRATION
(continued)
so that
a program
1973.)
129
records
to
implement
eligible
all
for
of
destruction
the
GAO
GENERAL
PUBLIC
BUILDINGS
Participation
at higher
obtainable
SERVICES
AD~IINISTRATION
SERVICE
certificates
interest
rates
for long-term
sold
than those
Government
bonds
Section
5 of Public
Law 92-313,
dated
June 16, 1972,
authorized
GSA
for 3 years to enter
into
purchase
contracts
with private
developers
who
GSA
would finance
and construct
public
buildings
to GSA specifications.
would make periodic
installment
payments
during
the contract
period
to
amortize
construction
and financing
costs.
At the end of the contract
period--not
to exceed 30 years--title
to the building
would transfer
to
the Government.
In sponsoring
Public
Law 92-313,
GSA asked the Congress
in 1971 for
purchase
contract
authority
for 3 years
as a stop-gap
expedient
that
would
eliminate
the construction
backlog
of about
60 projects
estimated
to cost
about
$750 million.
These projects
had been authorized
by the Congress
for Federal
construction
but had not been funded.
In addition
to the 60
buildings
authorized
by Public
Law 92-313,
GSA requested
approval
in
January
1973 for construction
and funding,
under purchase
contract
arrangeof three
Social
Security
Administration
payment
centers
estimated
to
ment,
cost
$110 million,
GSA has been obtaining
most of its
financing
through
the sale of 30year participation
certificates
by the GSA trustee,
the First
National
City Bank of New York.
At the time
GAO first
wrote
to GSA on February
27,
1973,
about
its method
of financing,
GSA had sold
$396 million
of participation
certificates.
By the end of March 1973,
GSA had sold another
issue
of certificates.
All
together
GSA has sold three
issues
of participation
certificates
amounting
to $522.5
million.
The first,
amounting
to $196.5
million,
was
sold in increments
from October
30 through
November
3, 1972, and had
interest
rates
varying
from 7.125 to 7.4 percent;
the second,
amounting
to
$200 million,
was sold on December
13, 1972,
and had an interest
rate
of
7.15 percent;
and the third,
amounting
to $126 million,
was sold on
The issues
were
March 14, 1973,
and had an interest
rate
of 7.5 percent.
sold at a total
discount
of about
$4.6 million,
which resulted
in an overall
effective
interest
rate
of 7.25 percent
on the first
and second
issues
and 7.90 percent
on the third
issue.
Public
Law 92-313
and its
legislative
history
are silent
concerning
the
The Comptroller
General
has
financing
with participation
certificates.
Also,
ruled,
however,
that
this
method
is within
the framework
of the law.
the Attorney
General
has advised
GSA that
the certificates
are general
obligations
of the United
States,
backed
by its
full
faith
and credit.
On the basis
of market
conditions
at the time
GSA participation
certificates
were issued,
GAO estimated
that
the Treasury
could
have issued
longterm Government
bonds for about
3/4 of 1 percent
less than the effective
interest
rate
for the certificates.
The additional
interest
costs
associated
with
the $522.5
million
of participation
certificates
is about
$3.92 million
a year,
which amounts
to $117.6
million
for the 30-year
term.
130
VARIOUS
DEPARTMENTS
AND AGENCIES
(Department
of Commerce;
Department
of
General
Services
Administration;
Department
Educat ion,
and Welfare;
Department
of
and Veterans
Administration)
Opportunities
constructing
for
reducing
and operating
Defense;
of Health,
Labor;
the cost
of
health
facilities
GAO undertook
a comprehensive
Pursuant
to a law enacted
by Congress,
study
of the costs
of constructing
and operating
health
facilities
and reported
to the Congress
on ways
to reduce
these
costs
for
facilities
built
GAO also
with
assistance
provided
under
the Public
Health
Service
Act.
examined
ways
in which
the demand for
facilities
could
be reduced
or
eliminated.
Constructing
operating
In
tunities
cilities,
fication
different
and
health
facilities
a November
1972 report
to the Congress,
GAO identified
many opporand operation
of health
fafor
improved
planning,
construction,
including
advance
analysis
of specific
health
care
needs,
identiof alternative
sources
of funds,
reuse
of building
designs,
and
construction
techniques.
Hospital
planners
generally
do not evaluate
on a life-cycle
basis
alternative
construction
techniques,
material,
designs,
and operating
systems.
Many hospital
administrators
and architects,
in efforts
to curb
the rising
cost
of hospital
construction,
search
for
obvious
savings
in
initial
construction.
These
initial
savings
often
preclude
later
savings
in operations
and maintenance
that
exceed
the initial
cost
savings.
initial
hospital
To demonstrate
construction
for
detailed
--Initial
as much
built.
--Life-cycle
incorporating
hospital.
the impact
that
certain
alternatives
and life-cycle
costs,
GAO selected
study.
The demonstration
showed
construction
as 8.6 percent
costs
the
costs
of the
lower
than
of as much
improvement
as
redesigned
those
of
$10.4
million
alternatives
the
would
have on
a recently
opened
that:
facility
facility
would
have
that
was
could
have been
into
the redesigned
saved
been
by
GAO recommended
that
the Secretary
of HEW (1) compile
and publish
information
on the essential
factors
to be considered
in project
planning,
(2) explore
the feasibility
of reusing
hospital
designs,
(3)
adopt
a common
set
of construction
requirements
for
HEW-administered
programs,
(4) develop
and disseminate
a scientific
base
of knowledge
on construction
requirements,
and (5) require
that
the fast-track
and total
concept
approaches
be considered
for
health
facility
projects
assisted
under
the Public
Health
Service
Act.
193
VARIOUS
DEPARTMENTS
AND AGENCIES
(Department
of Commerce;
Department
of
Administration;
Department
Gene ral Services
and Welfare;
Department
of
Education,
and Veterans
Administration)
Defense;
of Health,
Labor;
GAO also recommended
that
HEW establish
the capacity
to provide
lifecycle
cost data to health
facility
planners
and require
that
applicants
for
Federal
funding
justify
the use of construction
techniques,
materials,
designs,
and operating
systems
which differ
from those
recommended
by HEW.
GAO recommended
further
that,
until
HEW establishes
the capacity
to provide
life-cycle
cost data to health
facility
planners,
HEW should
encourage
planners
to consider
the information
presented
in this
report,
along
with
in identifying
the alternatives
for
local
operating
conditions
and costs,
life-cycle
analysis
that
are likely
to be the most appropriate
for inclusion
in the facility.
Demand
facility
for
health
construction
GAO also
identified
and studied
ways in which health
facility
construction
could
be avoided
by either
reducing
the demand for such facilities
or
increasing
the productivity
of existing
facilities.
The study
showed that
the demand for hospitals
and, to a lesser
extent,
other
health
care facilities
could
be reduced
and that,
by more efficiently
using
existing
facilities,
millions
of dollars
in construction
costs would not need to be spent.
These results
could
be attained
by (1) placing
greater
emphasis
on preventive
medicine,
(2) making
more appropriate
use of various
types of health
care facilities,
(3) increasing
the use of more efficient
and economical
medical
care delivery
systems,
(4) using
more effective
utilization
review
techniques,
(5) changing
health
insurance
incentives
that
emphasize
inpatient
care,
(6) sharing
more hospital
services,
(7) organizing
more efficient
and economical
health
care systems,
and (8) strengthening
the role
and
increasing
the capabilities
of areawide
health
planning
agencies.
GAO made a number
of recommendations
to the Secretary
of HEW calling
for these
changes.
In implementing
these
changes,
GAO recommended
that HEW
solicit
the cooperation
of other
Government
agencies,
private
health
organizations,
and medical
professionals
and assume leadership
in these
areas.
Some health
care providers
have changed
traditional
health
care demand
and utilization
patterns,
decreasing
the need to construct
acute
care and
other
types of health
facilities.
The economic
benefits
emanating
from
these
changes
and the means by which such changes
have been effected,
as
discussed
in GAO’s report,
should
be of particular
interest
to the Congress.
Accordingly,
GAO recommended
that
the Congress
consider
these matters
when
it considers
legislative
health
care proposals,
such as those providing
for
the reorganization
of the existing
health
care delivery
system
and for
programs
on national
health
insurance.
194
VARIOUS
DEPARTMENTS
(Department
Administration,
Improvement
advertising
needed
in
procedures
AND AGENCIES
of Defense,
General
Services
and Tennessee
Valley
Authority)
use of formal
for procurement
GAO reviewed
DOD, GSA, and the Tennessee
Valley
Authority
(TVA)
procedures
and practices
in using
formal
advertising
for bids
in order
to (1)
identify
problems
limiting
competition
and increasing
Government
costs
and
(2) offer
suggestions
to the agencies
for more effective
and less
costly
use
of this
method
of procurement.
GAO examined
138 contracts
by 8 procurement
offices
of
been solicited
but that
only
three
contracts
were
awarded
the low response
follow.
--Bidders
veal
lists
were
relatively
the
--Previous
bidders
--Advertising
lished
elicit
in
description
bids.
awarded
under
formal
advertising
procedures
these
agencies
and found
that
8,956
suppliers
8 percent
of them had submitted
bids.
Fiftyon the basis
of three
or fewer
bids.
Causes
based
on broad
categories
few sources
capable
of
were
the
not
regularly
for
the low
for
future
number
of
procurements.
--Restrictive
repeatedly.
specifications
or
--The
complexity
--Bidders
--Bids
were
were
Administrative
lists
of bidders;
ing,
and analyzing
because
:
--41
percent
tion
than
--About
visions
of
not
bids
were
purchase
reitem.
was not
required
pub-
not
given
time
to
minor
discrepancies.
rejected
because
of
suppliers
for
more
than
two
copies
bid
(IFBs)
the
one
IFBs were
solictitation
of
199
to
to
increase
were
used
from
bidding.
bid.
costs
of formal
advertising
include
preparing
and mailing
invitations;
bids.
Opportunities
for
reducing
more invitations
were
used.
timely
and the
was insufficient
evaluated
descriptions
discouraged
50 percent
of the pages
in
which
were
repeated
from
--Furnishing
unnecessary.
of items
and did not
bidding
for
a specific
invitations
enough
of
solicited.
Commerce
Business
Daily
of supplies
or services
--The
causes
competition
had
the
IFB
costs
of maintaining
and receiving,
recordthese
costs
were
evident
were
to
prepared
for
distribu-
standard
contract
to another.
pro-
the
was
firms
solicited
VARIOUS DEPARTMENTSAND AGENCIES
(Department
Administration,
--92
percent
of Defense, General Services
and Tennessee Valley Authority)
of the solicitations
mailed
GAO believes
that, if DOD and the civil
they could
for correcting
these conditions,
annually.
to firms
did not result
in bids.
agencies adopt its suggestions
save several million
dollars
GAO recommended that DOD and GSA, the major
instruct
procurement
offices
procurement
policy,
agencies responsible
and agencies to:
--Establish
a program in each procurement
office
to selectively
the extent of competition
achieved under formal advertising
aggressive
action to stimulate
competition
where it appears
restricted.
for
review
and take
to be
--Establish
a work simplification
program in each procurement
agency to
(1) solicit
only previous
bidders or suppliers
and firms that request
the requireIFBs, (2) simplify
and shorten IFBs, and (3) reevaluate
ments for distributing
IFBs.
Comments on GAO’s recommendations
and suggestions
were obtained
GSA, TVA, and the Small Business Administration
(SBA).
from DOD,
DOD and GSA agreed in general with GAO on the problems found but did not
‘Both agencies.were
concerned about
always agree with the recommendations.
the additional
regulation
and control
that GAO seemed to be suggesting.
GSA
said that these problems could be solved by educating
personnel
at the operating levels of procurement.
DOD said many of the suggestions
had been considered previously,
would be costly,
would add to procurement
time, and would
create additional
paperwork.
TVA said it did not have the problems discussed in this report.
SBA
officials
agreed with GAO on the problems and solutions
suggested.
They
wanted it clearly
stated that GAO’s suggestions
should not be construed to
mean the discontinuance
of various
programs to assist small business participation in Government procurement,
a point in which GAO concurred.
GAO agreed with GSA that educating personnel
is necessary to implement
sound administration.
But GAO believes
the agencies should achieve more
genuine competition
in formal bidding
at lower administrative
costs and
reiterated
its recommendation
to establish
programs within
each major procurement agency to increase competition
and simplify
formal advertising.
(B-176418, Aug. 14, 1973.)
VARIOUS
DEPARTMENTS
AND AGENCIES
(Department
of the Interior,
Department
of
Agriculture,
Department
of Defense,
and
the General
Services
Administration)
Need
solid
for
Federal
agencies
to improve
waste
management
practices
Federal
legislation
and Executive
orders
have stressed
the importance
of proper
solid
waste
disposal,
resource
recovery,
waste
reduction,
and the
Federal
agencies’
responsibilities
for providing
leadership
in the nationwide effort
to protect
and enhance
the quality
of the environment.
To
determine
how well
Federal
agencies
were
fulfilling
their
responsibilities,
GAO reviewed
disposal
policies
and practices
of those
agencies--Bureau
of
Land Management,
Forest
Service,
National
Park
Service,
and the Department
of the Army--that
managed
the bulk
of the Federal
land having
disposal
sites.
Federal
regulations
generally
prohibit
Federal
agencies
from
burning
but GAO reported
widespread
wastes
in open fires
and from using
open dumps,
open burning
and open dumping
on Federal
lands
administered
by the Bureau
of Land Management,
the Forest
Service,
and the National
Park
Service.
The Army generally
was satisfactorily
disposing
of its
unsalvageable
wastes.
The agencies
generally
lacked
a systematic
GAO recommended
solve
waste
disposal
problems.
Agriculture
and the Interior
direct
the Forest
and National
Park
Service
to:
agement,
--Establish,
ters
for
at
solid
the various
organizational
waste
matters.
--Establish
procedures
so that
communicated
effectively
to
adequate
policy
guidance
to
officials
effectively
carry
--Require
periodic
(1) agency-operated
on Federal
land
vate
land.
approach
to identify
that
the Secretaries
Service,
Bureau
of
levels,
and
of
Land Man-
responsihility
cen-
(1) solid
waste
management
policies
are
all
officials,
(2) headquarters
provides
regional
personnel,
and (3) regional
out agency
policies.
inspections
and reporting
of inspection
results
of
and lesseeand permittee-operated
disposal
sites
and (2) disposal
sites
used by the agencies
on pri-
GAO reviewed
also
GSA’s
and the Army’s
procurement,
resource
recovery,
and recycling
policies
and practices
and reported
that
both
agencies
had
recovered
some wastes
for
reuse
or recycling
but could
recover
many more.
Generally
the Army was recovering
wastes
only
when it was economically
it gave little
consideration
to salvaging
and recycling
priadvantageous;
marily
for
environmental
benefits.
should
GAO recommended
be aware
of,
that
GSA and the Army,
and should
emphasize
to
205
in their
procurement
their
suppliers,
the
activities,
VARIOUS DEPARTMENTSAND AGENCIES
(Department
of the Interior,
Department of
Agriculture,
Department of Defense, and
the General Services Administration)
environmental
or recyclable
benefits
materials,
that could be obtained through
containers,
and packaging.
using
more reusable
The agencies generally
agreed with GAO's findings
and recommendations
and specified
steps they were taking to implement the recommendations.
(B-166506, Oct. 26, 1972.)
4
206
VARIOUS
DEPARTMENTS
(Office
of Management
and Budget,
of Housing
and Urban Development,
Differences
relocation
in administration
assistance
program
AND AGENCIES
Corps of Engineers,
Department
and Department
of Transportation)
of
The Uniform
Relocation
Assistance
and Real Property
Acquisition
Policies
Act of 1970 provides
for uniform
and equitable
treatment
of persons
displaced
from their
homes,
businesses,
or farms by Federal
and federally
It also established
uniform
and equitable
land acquisiass isted
programs.
tion
policies
for such programs.
At the request
of the Chairman,
Subcommittee on Intergovernmental
Relations,
Senate
Committee
on Government
Operations,
GAO reviewed
Federal,
State,
and local
agencies’
progress
in implementing
the act in Missouri,
California,
Wisconsin,
and Pennsylvania.
GAO reported
that
OMB; the Corps of Engineers;
the Department
of Housing and Urban Development;
and the Federal
Highway
Administration,
Department of Transportation,
had (1) assisted
the States
in enacting
legislation
authorizing
their
participation
in federally
assisted
programs
causing
relocation
and (2) made progress
in identifying
and resolving
agencies’
differences
in the way relocation
payments
and services
were being
provided;
but the relocation
program
could
be better
administered
and payments
could
be made more uniform.
In January
1971 the President
directed
OMB to establish
and head an
interagency
task force
to develop
guidelines
for all
agencies
in preparing
procedures
covering
each agency’s
specific
programs.
OMB also was directed
to establish
and head a relocation
assistance
advisory
committee
to continually
review
agencies’
relocation
programs
to recommend
improvements
and, if
needed,
proposals
for legislation.
The task force
issued
interim
guidelines
in February
1971 and revised
guidelines
in May 1972.
As of January
1973,
the advisory
committee
had identified
12 major
differences
in agency guidelines
and obtained
agreement
from the agencies
to resolve
the majority
of
them.
GAO noted
instances
information
on relocation
--delays
in
enacting
--a
of
timely
lack
in which
benefits
displaced
available
persons
under
State
legislation
and/or
actions
by local
displacing
did not receive
timely
the new act because
of
offices.
Relocation
payments
generally
were computed
according
lines;
however,
because
more than one method
was permitted
method was not used by local
displacing
offices
in a given
with
similar
housing
needs did not receive
similar
payments.
the agencies
differed
in determining:
to OMB guideand the same
area,
displacees
For example,
--Differential
housing
payments
for homeowners,
Local
displacing
offices
in the same area used different
methods
to establish
the
reasonable
cost of a replacement
house comparable
to the one being
acquired
by the Government.
213
VARIOUS
of
DEPARTMENTS
(Office
of Management
and Budget,
Housing
and Urban Development,
AND AGENCIES
Corps of Engineers,
Department
and Department
of Transportation)
--Differential
rental
payments.
Local
displacing
offices
how much,
if any, of a displaced
person's
income
should
in computing
the payment
and whether
the payment
should
actual
rent paid
for the replacement
house or the rental
comparable
replacement
housing.
--Downpayments.
Some local
displacing
offices
limited
amount
needed
for a conventional
loan on a comparable
other
offices
paid
the amount needed
for a conventional
house purchased.
differed
in
be considered
be based on
amount
for
payments
to the
house while
loan on the
OMB generally
concurred
with GAO's findings
and conclusions
and said
the agencies
agreed,
in principle,
with
the major
differences
reported
and
were developing
detailed
instructions
to correct
them.
In addition,
OMB
said
that
the interagency
task force
responsible
for resolving
agencies'
legal
and procedural
differences
was making
excellent
progress
in identifying and resolving
differences.
After
transferred
this
to
report
was issued,
OMB's relocation
GSA.
(B-148044,
June 7, 1973.)
214
responsibilities
were
VARIOUS
DEPARTMENTS
AND AGENCIES
(Office
of Management
and Budget
General
Services
Administration)
Revisions
needed
in financial
management
policies
of the Federal
Government's
Automatic
Data Processing
and
Fund
GAO examined
the management
policies
(ADP) Fund's
equipment
lease program
to
administered
as intended
by the law and
ing economies
in acquiring
ADP equipment.
of the Automatic
Data Processing
determine
whether
the fund is being
is effectively
assisting
in achiev-
The Fund is an important
tool
for acquiring
the Government's
ADP equipment economically
and leasing
it to agencies.
However,
certain
Fund policies
should
be revised
to comply
with
the intent
of Public
Law 89-306
and with
the accounting
principles
prescribed
by the Comptroller
General
for use by
Federal
agencies.
will
lion.
ized
Equipment
purchased
by the Fund for $19.1 million,
as of March 31, 1972,
enable
the Government
to avoid
commercial
rent payments
of $38.7 milThe equipment
which the Fund purchased
for $19.1 million
was capitalat $22.7 million.
GAO believes
that:
--Augmenting
the Fund with the $3.6
ization
of purchased
equipment
in
with a provision
that
Fund capital
the value
of equipment
transferred
million
attributable
to the capitalexcess of costs
is not in accordance
be composed
of appropriations
and
to the Fund.
--Revaluing
trary
to
agencies.
amounts
greater
than
prescribed
for use
purchased
equipment
at
the accounting
principles
--Since
the amounts
capitalized
are recovered
through
the capitalization
policies
for purchased
equipment
in charges
to users
that
are contrary
to a requirement
89-306
that
charges
approximate
the cost met by the
cost is conby Federal
lease
charges,
have resulted
of Public
Law
Fund.
Agencies
have also been required
to pay an additional
10 percent
of the
equipment's
capitalized
value
to provide
for anticipated
losses
due to the
The effect
of this
charge
and its
early
termination
of equipment
leases.
accounting
treatment
has been to recognize
losses
before
they are incurred
and to unnecessarily
increase
user charges.
GAO suggested
that
OMB and GSA revise
the Fund's
equipment
capitalization
policies
to insure
compliance
with
Public
Law 89-306
and improve
the
to the extent
practicable,
those policies
which
Fund's
image by revising,
are objectionable
to the agencies.
OMB and GSA were receptive
OMB nor GSA favored
elimination
to
of
most of GAO's
the 10 percent
215
suggestions,
charge
for
but neither
anticipated
VARIOUS DEPARTMENTSAND AGENCIES
(Office
of Management and Budget and
General Services Administration)
However, OMB and GSA have reduced
losses due to early lease terminations.
the charge from 10 percent to 3 percent and are considering
alternative
(B-115369, Apr. 17, 1973.:
accounting
approaches for recovery
of such losses.
216
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