Government Operations:

Award and Administration of Contracts for Job Corps Centers

PLRD-82-107, Aug 10, 1982

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As part of a survey of Department of Labor procurement practices, GAO reviewed the contract award and administrative procedures followed by the Dallas Regional Office of Labor's Employment and Training Administration.

GAO found that: (1) contracts for operating three Job Corps centers, which should have been awarded competitively, were awarded on a sole-source basis; and (2) the region's performance of contract administration functions did not provide adequate assurance that the Government's resources were properly used and safeguarded. These problems may not be unique to the Dallas region; other regions also awarded sole-source contracts to nonprofit organizations using the same justification used by Dallas. In addition, other regions have centers with federally owned housing. Labor has, in effect, subsidized rentals with contract payments because the policies governing charges for federally owned rental quarters established by Congress and implemented by the Office of Management and Budget are not required. According to Federal procurement statutes and regulations, contracts for operating Job Corps centers should be awarded competitively, unless specifically exempted from competition. Also, Labor should provide adequate operation oversight to assure that contractors follow sound business practices and operate in accordance with applicable Federal regulations.

Status Legend:

More Info
  • Review Pending-GAO has not yet assessed implementation status.
  • Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.
  • Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.
  • Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.
    • Review Pending
    • Open
    • Closed - implemented
    • Closed - not implemented

    Recommendations for Executive Action

    Recommendation: The Secretary of Labor should direct the Assistant Secretary for Employment and Training and the Director, Office of Job Corps and Young Adult Conservation Corps, to award future contracts for operating Job Corps centers competitively unless contractors are specifically exempt from competition by statutes.

    Agency Affected: Department of Labor

    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 direct the Assistant Secretary for Employment and Training and the Director, Office of Job Corps and Young Adult Conservation Corps, to limit the extension of existing sole-source contracts for operating Job Corps centers to the minimum amount of time needed to effect competitive procurement.

    Agency Affected: Department of Labor

    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 direct the Assistant Secretary of Employment and Training and the Director, Office of Job Corps and Young Adult Conservation Corps, to require the contracting officers for Job Corps centers with federally owned housing to assure that rental rates and utility costs are charged in accordance with OMB Circular A-45.

    Agency Affected: Department of Labor

    Status: Closed - Implemented

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

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