Department of Labor:

Noncompetitive, Discretionary Grants

HEHS-94-9: Published: Feb 22, 1994. Publicly Released: Feb 22, 1994.

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Pursuant to a congressional request, GAO reviewed the Department of Labor's discretionary grant award process, focusing on: (1) the noncompetitive discretionary grants awarded during fiscal years 1990 through 1992; (2) how Labor justifies grants of $25,000 or more; (3) the systems Labor uses to track discretionary grants and grantee performance; and (4) the application review mechanisms used by Labor to detect potential conflicts of interest involving former employees.

GAO found that: (1) for fiscal years 1990 through 1992, the Department of Labor awarded 134 noncompetitive, discretionary grants of $25,000 or more to organizations other than state or local governments; (2) five Labor agencies have authority to award discretionary grants, and each functions independently in awarding grants to implement particular programs; (3) Labor has a Procurement Review Board that reviews proposed noncompetitive grant awards of $25,000 or more; (4) Labor has no central management information system to identify and track grant awards; (5) grant monitoring varies considerably among Labor agencies; and (6) Labor screens its procurement officials for possible conflicts of interest resulting from sole-source acquisitions.

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