Award and Administration of Contracts to Recruitment and Training Program, Inc., During Fiscal Years 1978-81

HRD-82-125: Published: Sep 29, 1982. Publicly Released: Oct 12, 1982.

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In response to a congressional request, GAO evaluated specific concerns regarding contracts awarded by the Department of Labor during fiscal years 1978-81 to Recruitment and Training Program, Inc. (RTP), a nonprofit organization involved in career guidance and placement activities.

The Department of Labor awarded 10 contracts to RTP under provisions of the Comprehensive Employment and Training Act to provide employment and training services to disadvantaged persons. GAO found that Labor's administration of these programs generally shows: (1) no comprehensive reviews of RTP contract proposals, (2) a lack of documentation to show comprehensive reviews of past contract performance and current fiscal responsibility before making awards, and (3) no verification of performance data submitted by RTP. These and other contract award and administration problems discussed in this evaluation are similar to those identified in two GAO reports issued in August 1981. In response to those reports' recommendations, Labor has revised its contract award procedures; these actions should improve its employment and training award activities. Despite these problems, GAO concluded that the RTP policies, procedures, and system for administering and carrying out Labor contracts are adequate.

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