Resolution Trust Corporation: Ineffective Management of HomeFed Bank
Environmental Services Contracting (Letter Report, 12/28/93,
GAO/GGD-94-62).

The Resolution Trust Corporation's (RTC) environmental site assessments
are required to identify any assets with special resource values, such
as wetlands, endangered species, and historic buildings, or
environmental hazards, such as underground storage tanks, hazardous
waste, asbestos, and radon.  RTC's planning and management of
environmental services contracts at the HomeFed Bank Federal Association
in San Diego, California, were ineffective, and RTC incurred added costs
in excess of $570,000--25 percent of the $2.3 million spent to date.
HomeFed was one of the largest environmental contracting efforts
undertaken by RTC, with 20 contracts and more than 500 assets.  RTC
failed to (1) adequately consider the magnitude of its task and the
staffing needed to achieve its sales objectives, (2) provide contractors
with complete information on contract requirements or assets to be
assessed, (3) follow contracting procedures, (4) ensure that key staff
were available to resolve basic project issues, (5) know the status of
individual environmental assessments during the project, and (6) provide
effective oversight of contractors and the contracting officer's and
oversight manager's performance.  As a result, RTC's efforts to complete
the environmental assessments required for the asset sales were impeded.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-94-62
     TITLE:  Resolution Trust Corporation: Ineffective Management of 
             HomeFed Bank Environmental Services Contracting
      DATE:  12/28/93
   SUBJECT:  Contract administration
             Contracting procedures
             Bank failures
             Federal corporations
             Federal property management
             Real estate sales
             Service contracts
             Savings and loan associations
             Property disposal
             Contractor personnel
IDENTIFIER:  RTC Accelerated Resolution Program
             RTC Cooperative Institution Marketing Program
             RTC Field Monitoring Program
             San Diego (CA)
             District of Columbia
             
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