OF CONTRACT. THESE CONTRACTS REPRESENTED $24.8 MILLION OF $48.5

MILLION IN CLEANING SERVICE CONTRACT COSTS.

(4) WE COULD NOT FIND CONCLUSIVE EVIDENCE THAT PREVIOUS CLEANING

PROBLEMS HAD BEEN EXPERIENCED BY MOST FEDERAL BUILDINGS CURRENTLY
USING THE COST-PLUS-AWARD FEE TYPE OF CONTRACT. THEREFORE, THE
RATIONALE FOR USING THIS TYPE OF CONTRACT IS QUESTIONABLE IN MOST
CASES. OUR ANALYSIS OF CLEANING CONTRACT COSTS FOR THE 64 BUILD-
INGS SHOWED THAT COST-PLUS-AWARD-FEE CONTRACTS WERE ABOUT $5 MILLION
HIGHER THAN COSTS WOULD HAVE BEEN UNDER ADVERTISED, FIXED-PRICE

CONTRACTS.

(5) WE RECOMMENDED THAT GSA:

--OBTAIN COMPETITION FOR ELEVATOR MAINTENANCE SERVICES.

--MONITOR FUTURE CONTRACT AWARDS BY ITS REGIONAL OFFICES TO

ASSURE THAT MAXIMUM COMPETITION IS OBTAINED.

--REVISE AND IMPLEMENT GUIDELINES TO ENCOURAGE USE OF ADVERTISED,
FIXED-PRICE CONTRACTS FOR CLEANING SERVICES IN LARGE FEDERAL

OFFICE BUILDINGS TO THE MAXIMUM EXTENT, IN LIEU OF THE

COST-PLUS-AWARD-FEE CONTRACT.

--IMPLEMENT GUIDELINES AND CONTRACT CLAUSES TO INSURE THAT

CONTRACTORS AWARDED ADVERTISED,.FIXED-PRICE CONTRACTS FOR
LARGE BUILDINGS PROVIDE THE REQUIRED CLEANING SERVICES.

GSA OFFICIALS STATED THAT SOME ACTION HAS ALREADY BEEN TAKEN, AND
FURTHER ACTION WILL BE TAKEN TO ENCOURAGE GREATER USE OF ADVERTISED
CONTRACTS FOR ELEVATOR MAINTENANCE AND CLEANING SERVICES.

41-487 - 79 - 7

* 22

Senator CHILES. Our next witness will be Mr. Lester A. Fettig, the Administrator for the Office of Federal Procurement Policy. Senator Nunn, he is the man that is responsible.

Will you raise your right hand and be sworn, please?

[Whereupon, Lester A. Fettig, having been first duly sworn, was called as a witness.]

Senator CHILES. Mr. Fettig, when it comes to major systems acquisition, I believe you wrote the book. The subcommittee is aware of the efforts that you and your staff have undertaken to make A-109

a success.

In the interest of time, however, I would appreciate if you would allow us to insert your statement in the record in full at the conclusion of your testimony, and allow us to go directly to the questions. Would it be fair to say that 2 years after A-109 is in effect, GSA has not complied?

TESTIMONY OF LESTER A. FETTIG, ADMINISTRATOR FOR FEDERAL PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET

Mr. FETTIG. As measured by actual program changes, that's correct. If I might elaborate a little bit, what we've had is a lot of people saying it's so, and very few people making it so. Actually, there are only five agencies today who have actually changed their programs, literally, where we're getting better competition; where we're getting mission needs statements. They include the Defense Department; NASA; Energy; EPA; and HEW only because we stopped a major HEW computer acquisition in OMB because it was not in compliance. The other agencies, including GSA, have gone through a lot of motions; gone through a lot of paperwork; but if you look behind the scenes at what is actually changed, you'll find very little is changed.

Senator CHILES. Mr. Fettig, you are charged with the responsibility of seeing that that order is carried out, and you had a lot to do with that order being put in in the first place. What are you doing to get that job done at General Services Administration and at these other agencies, too?

Mr. FETTIG. We've had a program-on that point I'd like to supplement the record-of attacking, if you will, each and every Federal agency for their compliance. Each has had to give a plan to us. Thẹ record of correspondence and meetings with GSA has been regular and repeated, and I'll leave that for the record.

CHRONOLOGY OF A-109 CORRESPONDENCE WITH GSA

- GSA

To: Les Fettig, Administrator, OFPP
From: Jay Solomon, Administrator GSA
(Response to reference c)

States: (1) A-109 implemented both on an
agency policy level and on a service level.
(2) GSA is following A-109 procedures in all
major system acquisitions.

Identifies for compliance with A-109: (a)
four ADP programs for GSA's own use (b) two
ADP programs of other agencies, (c) eleven PBS
programs that are underway but will be continued
in accord with A-109, (d) five probrams an-
ticipated in the FY 1980 or 81.

'Mr. Griffin designated as focal point for A-109
training of GSA personnel.

"Operations level training or A-109 anticipated in
summer and fall of FY 1979 (i.e. summer and fall
of calendar1979).

To: Fred Dietrich, OFPP From: Richard H. Hopf
(This response to reference f. was received
6/15/78)

Takes execption to OFPP comments on Draft PBS
Order 5400.18.

d. 3/29/78

e. 3/24/78

Administrator OFPP

-

GSA From: Lester Fettig,

'Request for an updated GSA plan to implement
A-109 typical of letters sent to all agencies.
'Asks for: (a) updated time phased plan for fully
implementing A-109, (b) list of all new starts
with detailed explanation for any new starts
which will not be in full compliance with A-109,
(c) identification of a focal point for A-109
training.

To: Richard Hopf GSA From: Fred Dietrich
OFPP (supplement to 3/21/78 Response to ref. g.)
"Refers to 3/21/78 memo to Hopf from Dietrich
'Forwarded logic diagrams of the A-109 acquisition
process tailored to PBS. Emphasized full con-
sideration of alternatives based on truly com-
petitive proposals.

"References applicability of OMB Circulars
A-104 and A-76 in the acquisition process.

GSA Order PBS 5400.18 issued

Transmitted by reference a. on 5/23/78

Subject: "Major System Acquisition in the
Public Building Service"

To:

To: Richard Hopf. GSA From: Fred Dietrich -
OFPP (response to ref g)

"Points out only 50% of A-109 contents are
addressed in draft PBS order.

"Points out key decision points in draft PBS
order are not consistent with A-109

"Forwarded a "marked-up" copy of draft PBS order.
Requested review prior to issuance.

From: Richard Hopf
order

In

Request for comments on Draft PBS
anticipation of a presentation to civil agencies
at an A-109 training course.

Memo for Acquisition Executives in Selected Agencies
From: Les Fettig, Administrator, OFPP

"Form letter to Acquisition Executives of agencies
requesting new major system acquisition starts
be identified for FY 1978 and 79.

To: Joel W. Solomon, Administrator, GSA
From: James T. McIntyre, Jr. Dep. Director, OMB
Requested: (a) status of GSA implementing orders,
(b) a list of major system acquisitions.
Requested a review with Mr. Fettig within 30
days.

(no written response)

To: Hugh E. Witt, Administrator, OFPP

From: Wallace Robinson, Jr. Acting Dep. Administra-
tor, GSA

(Response to ref. m of 10/26/76)

•Submitted draft GSA order implementing A-109 for commen1
'Anticipated issuing order in matter of days.
(comments given to Mr. Berube in meeting on
January 6, 1977)

Terry Chambers, Dep. Administrator, GSA
From: Hugh E. Witt, Administrator OFPP
°OFPP

accepted GSA's A-109 implementation

To:

n. 10/6/76

o. 10/5/76

P. 9/28/76

q. 11/4/75

r. 8/28/75

3

To: Jack Eckerd, Administrator, GSA

From: James T. Lynn, Director, OMB

'Clarifies GSA's role under PL 89-306 for ADP
acquisition

"Gives GSA authority to preclude agencies providing
unduly restrictive specifications for ADP

equipments.

To: Hugh E. Witt, Administrator, OFPP

GSA

From: Terry Chambers, Acting Administrator
Submitted GSA's A-109 implementation plan as
required by para. 17b of A-109.

Established due dates for several impact studies
All due by September 1977.

110

Memo for agency points of contact

From: Fred Dietrich, OFPP

'Provides a list of items that should be addresssed in agencies A-109 implementation plans.

To: The Heads of Exec. Departments & Establishments
From: Hugh E. Witt, Administrator, OFPP

'Forwards draft major system acquisition policy
to all agencies for comment.