Embassy Contracting

State Department Efforts To Terminate Employee Association Contracts Gao ID: NSIAD-88-85 February 16, 1988

In response to a congressional request, GAO reviewed the Department of State's efforts to convert service contracts between U.S. embassies and their employee associations to commercial or U.S. embassy personal service contracts.

GAO found that: (1) as of September 30, 1987, 59 of the 67 embassies had converted their employee association contracts to commercial or U.S. embassy personal service contracts; and (2) State plans to convert eight remaining contracts. GAO also found that: (1) since termination of the contracts, associations have had to pay severance benefits for contract employees who lose their jobs; (2) some associations failed to maintain adequate reserves for employees' severance benefits; (3) State has already provided $299,000 to cover associations' debts; and (4) only one post formally requested permission to continue its association contract.


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