Summary

In response to a congressional request, GAO reviewed the use of contract modifications by the Job Corps in its programs of vocational training, education, work experience, counseling, and other employment activities.

GAO found that, before fiscal year 1982, the Job Corps' procurement process was vulnerable to improper use of contracting authority, primarily because: (1) the Job Corps director had both programmatic and contracting officer authority, (2) internal controls were inadequate, and (3) audit coverage of Job Corps procurement activities was inadequate. The Department of Labor has addressed these problems by: (1) shifting contracting officer authority from the Job Corps director, (2) adopting internal controls over procurement, and (3) arranging for broad audit coverage of Job Corps contracts by the Inspector General. GAO believes that these actions should significantly improve the efficiency and effectiveness of the Job Corps' procurement activities, although the Job Corps' continuing reliance on architectural and engineering contractors to write contracts remains a problem.