Army's Contracting Out of Installation Support Functions at Selfridge Air National Guard Base, Mt. Clemens, Michigan

Gao ID: PSAD-80-79 September 19, 1980

GAO examined the Army's tentative decision to contract out the installation support functions at Selfridge Air National Guard Base. GAO evaluated an Army cost comparison which showed that the Army could save about $3.1 million over a 3-year period if the functions were contracted out as opposed to being done in-house.

GAO believes the potential savings of contracting out the installation support functions could be over $3.8 million and could affect 146 civilian employees. All the part-time employees and probably 12 of the full-time employees could become unemployed, with the remainder being absorbed by the local major Army agency. There is a potential for 28 full-time and 19 part-time people becoming unemployed; however, there would probably be no overall reduction in employment in the area as the contractor would need to hire more people than the number of Government employees that may lose their jobs.

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