[Comments on Interior's Application of OMB Circular A-76]

GAO addressed issues pertaining to the minimum wage rates paid to federal employees at the Hoover Dam and the effect of dam employees' wage rates on the possibility of contracting for services at the Hoover Dam pursuant to Office of Management and Budget (OMB) Circular A-76. GAO determined that: (1) the Bureau of Reclamation negotiates dam employees' wage rates annually with their union; (2) in 1984 and 1985, the prevailing wage rates for dam employees in the area of the dam, as determined by the Department of Labor, were generally less than the rates negotiated with the union; and (3) if the negotiated rates were adopted as the prevailing wage rates, it would be unlikely that commercial contractors could submit bids that would achieve the savings OMB Circular A-76 requires for contracting for required services.