Army's Contracting of Activities at the Selfridge Air National Guard Base and the Tank-Automotive Command in Michigan

In response to a congressional request, GAO reviewed allegations that: (1) modifications to an Air Force maintenance contract had increased the amount of the overall contract and the cost to the government; (2) government personnel were used to perform some of the contract work; and (3) government equipment was used for contracted activities. GAO also reviewed the procedures used by the Army to monitor contract performance and determined whether there were any adverse effects on services from contracting under either the contract in question or Army Tank-Automotive Command contracts.

GAO did find that there had been contract cost increases, but that most of these increases would not affect the estimated savings. While some cost increases were attributable to incomplete work performance statements in the basic contract, the effect on the savings was minimal. Furthermore, while government personnel did work in contracted areas, the work that they performed was outside the scope of the contract, and use of government equipment by the contractor was authorized by the contract. GAO also found that the Army had procedures to ensure compliance with the terms of the contract. In addition, GAO found no evidence that services were adversely affected by contracting out at the Air Force base or at the Army Tank-Automotive Command.