Resolution Trust Corporation: A More Flexible Contracting-Out Policy Is Needed
GGD-91-136
Published: Sep 18, 1991. Publicly Released: Sep 18, 1991.
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Highlights
Pursuant to a congressional request, GAO reviewed the Resolution Trust Corporation's (RTC) contracting procedures, focusing on whether RTC uses an approach that allows it to select between contractors and RTC staff for the most advantageous approach to handle asset management and disposition.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Resolution Trust Corporation | RTC should clarify its contracting-out policy so that its staff clearly understand that they have the flexibility to use their staff instead of private contractors when in their judgment an in-house approach would be more practical and efficient for a particular need or situation. |
Closed – Implemented
RTC revised its procedures to recognize that staff could be used as necessary rather than contractors. However, the procedures do not provide guidance to RTC staff on the information that RTC management needs to review and approve this decision. Without this guidance, it is likely that these decisions will not be made on a consistent basis. Yet, given that RTC has only 16 months until it terminates, GAO anticipates that such guidance will not be forthcoming and the level of contracting will be greatly reduced and the consequences of any inconsistencies will not be significant. Therefore, GAO is closing the recommendation at this time.
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