Contracting of Various Functions Under OMB Circular A-76 at Selected Air Force Installations in San Antonio, TX

In response to a congressional request, GAO reviewed five commercial functions at two Air Force installations to determine whether they were contracted out under the cost comparison provisions of Office of Management and Budget Circular A-76.

GAO found that: (1) savings were realized for most of the functions it was able to review; (2) savings resulted primarily because contractors used fewer employees and paid lower wages than the government; (3) when the functions were converted to contractor operation, most displaced workers obtained other government jobs; (4) the wages, benefits and job security of contractor employees were less than those provided to government employees; (5) contractor performance was generally satisfactory and responsive to government needs; (6) contracts were awarded through competitive bidding; and (7) a bidding requirement pertaining to a hospital aseptic management system was not unduly restrictive.