Department of Labor

Noncompetitive, Discretionary Grants Gao ID: HEHS-94-9 February 22, 1994

This report reviews the way in which Labor Department processes and approves noncompetitive, discretionary grants to entities other than state and local governments. GAO (1) identifies the noncompetitive, discretionary grants of $25,000 or more awarded by labor during fiscal years 1990-92; (2) determines how labor awards and justifies grants; (3) describes the manner in which Labor oversees grantee performance and identifies the systems that Labor uses to track those grants; and (4) determines the extent of grant awards made to former employees and identifies the application review mechanisms used by Labor to spot potential conflicts of interest involving former employees.

GAO found that: (1) for fiscal years 1990 through 1992, the Department of Labor awarded 134 noncompetitive, discretionary grants of $25,000 or more to organizations other than state or local governments; (2) five Labor agencies have authority to award discretionary grants, and each functions independently in awarding grants to implement particular programs; (3) Labor has a Procurement Review Board that reviews proposed noncompetitive grant awards of $25,000 or more; (4) Labor has no central management information system to identify and track grant awards; (5) grant monitoring varies considerably among Labor agencies; and (6) Labor screens its procurement officials for possible conflicts of interest resulting from sole-source acquisitions.



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