Air Force Procurement:

Accuracy of Commercial Activity Study for Niagara Falls Air Force Reserve Base

NSIAD-90-92: Published: Jan 25, 1990. Publicly Released: Jan 25, 1990.

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Pursuant to a congressional request and a legislative requirement, GAO reviewed the Niagara Falls Air Force Reserve Base's cost-effectiveness comparison of the costs of in-house versus contractor performance of base support services.

GAO found that: (1) the Air Force conducted the cost comparison in accordance with Office of Management and Budget and Air Force regulations, determined that it would save about $143,000 over 3 years by contracting for the required services, and awarded a contract for those services to begin in April 1990; (2) there was no support for displaced federal employees' allegations that the contractor underestimated the number of personnel it needed to perform the requirements; (3) there was no support for the federal employees' claims that unemployment costs for displaced workers should be part of the contract costs; and (4) comparison of the Niagara Falls commercial activity study with a study performed at the Minneapolis-St. Paul Air Force Reserve Base found no significant differences in evaluation methods or cost factors, although the cost comparisons supported retaining the services in Minneapolis-St. Paul, primarily due to its higher one-time conversion costs.

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