Stronger Controls Needed Over Federal Agency Contracting for Moving and Labor Services

GAO reviewed General Services Administration (GSA) and other agency moving and labor service contracts in the Washington, D.C., area. Although GSA can award moving contracts to meet agencies' needs, many agencies choose to contract their own, often resulting in higher prices. Agencies predominantly use indefinite quantity, labor-hour contracts to meet moving and labor service requirements. Payments under these contracts are made based on contractor labor hours furnished at fixed rates, which include the contractor's labor costs, overhead, and profit. When this type of contract is used, it is essential that agencies provide for adequate control over the contract to assure that services are performed efficiently.