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Resolution Trust Corporation: Further Actions Needed to Implement Contracting Management Initiatives

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Report Type Reports and Testimonies
Report Date March 5, 1992
Report No. GGD-92-47
Subject
Summary:

During its limited life, the Resolution Trust Corporation (RTC) will spend millions of dollars on private-sector contracts to manage and sell assets placed under its control. GAO reports that RTC has made substantial progress in strengthening its contracting system. More work needs to be done, however. GAO found that RTC field staff do not uniformly evaluate the competency of potential contractors and lack guidelines for evaluating the financial capability for potential contractors. GAO also discovered that less than two-thirds of contracting personnel at the locations it visited had contracting experience before coming to work at RTC. Accordingly, RTC needs to complete the development of its contracting training courses and accelerate the training. Without such improvements, there is no assurance that the best contractors will be hired to dispose of failed thrifts' assets.

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