OMB Circular A-76: Flaws in Cherry Point Comparison Preclude Validation of Contracting Decision
NSIAD-92-38
Published: Oct 18, 1991. Publicly Released: Oct 18, 1991.
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Highlights
Pursuant to a congressional request, GAO reviewed an 8-year Office of Management and Budget (OMB) Circular A-76 cost study at the Marine Corps Air Station in Cherry Point, North Carolina, which concluded in July 1990 that the station's facilities maintenance, utilities, and motor transportation functions could be performed more economically by a contractor.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Navy | The Secretary of the Navy should direct the head of the contracting activity to ensure that notice to proceed with performance of the current contract is withheld until the Commandant of the Marine Corps: (1) determines what impact noted deficiencies had; and (2) can demonstrate that proceeding with the current contract would be the most advantageous course of action. |
Closed – Not Implemented
The statutory and conference report on the fiscal year 1992 Department of Defense Appropriations Act rules out notice to proceed and precludes demonstration contemplated by the recommendation.
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Topics
Comparative analysisContract administrationCost effectiveness analysisFacility maintenanceFacility managementMaintenance services contractsMilitary facilitiesPreaward surveyPrivatizationSolicitation specificationsTransportation contracts