Information on Labor's Awards to the Opportunities Industrialization Centers of America

HRD-83-33: Published: Mar 28, 1983. Publicly Released: Apr 27, 1983.

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GAO reviewed the Department of Labor's award and administration of contracts to the Opportunities Industrialization Centers of America, Inc. (OIC/A), a national organization which provides assistance to its local affiliates on the management and operation of employment training programs.

GAO found that Labor awarded the contracts on a sole-source basis without considering alternative providers and without determining the extent of local affiliates' technical assistance needs. Contract files did not contain sufficient justification to show why other potential providers were not considered. However, the modifications extending the contracts for fiscal years 1981 and 1982 showed some improvements. GAO also determined that OIC/A contracts did not meet Labor's criteria for procurement actions in that the documents were not sufficiently precise with regard to work to be performed. GAO interviews with a sample of local OIC/A affiliates showed that their technical assistance needs were primarily fulfilled by OIC/A, and most local affiliates were satisfied with the assistance they received. Analyses of interviews conducted with a sample of OIC/A local affiliates' officials indicated that most locals offered similar employment and training services but the extent of services varied depending on the nature of the subcontract with prime sponsors under the Comprehensive Employment and Training Act.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Secretary of Labor should require specificity in future technical assistance type contracts, particularly with respect to quantifiable objectives which should provide the basis for adequate assessment of the awardees' activities.

    Agency Affected: Department of Labor

  2. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Secretary of Labor should award future technical assistance contracts competitively in accordance with revised contract award procedures.

    Agency Affected: Department of Labor

 

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