[Comments on H.R. 979]

In response to a congressional request, GAO commented on a bill to authorize government agencies to refer debts owed to the United States to private legal counsel for the institution of legal action. GAO found that: (1) the Department of Justice was generally responsible for conducting the government's litigation; (2) under the Federal Claims Collection Standards, agencies were required to refer litigable claims of $600 or more to Justice for legal action; and (3) a study by the Office of Management and Budget suggested the need for significant changes in the procedures used by Justice and the other agencies in referring and handling claims sent for litigation. GAO also indicated that law firms might agree to accept claims of less than $600. GAO believed that, properly supervised, the use of private counsel, paid on a contingency basis: (1) could be a useful and profitable complement to the collection tools currently available to the United States; (2) might alleviate the reported backlog of cases at Justice; and (3) might increase the speed and yield of the government's collection processes.