In response to a congressional request, GAO reviewed the National
Oceanic and Atmospheric Administration's (NOAA) implementation and
management of Office of Management and Budget (OMB) Circular A-76
which provides that federal agencies review their activities to
determine whether commercial activities could be performed more
economically by contract than by government employees. GAO found
that NOAA began its A-76 program in December 1982 and has completed
only 4 of its 37 originally scheduled reviews, and the entire
process is not expected to be completed until October 1987. NOAA
expects that $2.2 million in savings will be realized during fiscal
year 1985 by implementing A-76 review results. NOAA has
involuntarily separated 13 employees. GAO found that NOAA has
complied with various OMB Circular A-76 policies and procedures,
but in early reviews it had problems because it had not fully
developed a system for managing and directing the process. Some
NOAA employees and consultants implementing the program were not
adequately prepared for their duties because of insufficient
training and directives. One of the first contracts resulting from
an A-76 review did not include a performance requirements summary
that would have established an agreement on a systematic approach
for reducing payments to the contractor for performance problems.
NOAA has taken or is planning to take corrective action on each of
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