Award and Administration of Contracts for Job Corps Centers

As part of a survey of Department of Labor procurement practices, GAO reviewed the contract award and administrative procedures followed by the Dallas Regional Office of Labor's Employment and Training Administration.

GAO found that: (1) contracts for operating three Job Corps centers, which should have been awarded competitively, were awarded on a sole-source basis; and (2) the region's performance of contract administration functions did not provide adequate assurance that the Government's resources were properly used and safeguarded. These problems may not be unique to the Dallas region; other regions also awarded sole-source contracts to nonprofit organizations using the same justification used by Dallas. In addition, other regions have centers with federally owned housing. Labor has, in effect, subsidized rentals with contract payments because the policies governing charges for federally owned rental quarters established by Congress and implemented by the Office of Management and Budget are not required. According to Federal procurement statutes and regulations, contracts for operating Job Corps centers should be awarded competitively, unless specifically exempted from competition. Also, Labor should provide adequate operation oversight to assure that contractors follow sound business practices and operate in accordance with applicable Federal regulations.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Robert M. Gilroy Team: General Accounting Office: Procurement, Logistics, and Readiness Division Phone: (202) 275-4268