Air Force:

Enlisted Recruits' Initial Haircuts

NSIAD-87-127BR: Published: May 19, 1987. Publicly Released: Jun 3, 1987.

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Pursuant to a congressional request, GAO reviewed Lackland Air Force Base's contracting for haircuts for recruits, focusing on: (1) the Air Force's rationale for replacing its agreement with the Army and Air Force Exchange Service (AAFES) with a contract; and (2) the impact of the contract on AAFES contributions to the Morale, Welfare, and Recreation Fund.

GAO found that: (1) AAFES had provided the services by subcontracting with a firm that later protested the current concession agreement; (2) GAO decided, in response to a protest, that while the Air Force did not improperly exclude the firm from competition, it should not exercise any contract extension options because it did not sufficiently justify their inclusion in the contract; (3) AAFES contributed part of the concessionaire fee under the old agreement to the fund; (4) the estimated loss to the fund will be about $9,500 in fiscal year 1987; and (5) the Air Force estimated that it provided about $965,000 in appropriated-fund support to non-appropriated fund instrumentalities serving Lackland.

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