AUDIT REPORT USOM/THAILAND NEED PLAN PROJECT

PROJ INITIATED TO PROVIDE AID-FINANCED CONTRACTED SERVICES TO THAI GOVT"S (RTG) NATIONAL ECON DVLP BOARD (NEDB) IN THE FORMULATION AND IMPLEMENTATION OF A NEED PLAN TO BE INCORPORATED INTO THE 1972-1976 5-YEAR NATIONAL ECON PLAN. PROJ ALSO PROVIDES NEDB PERSONNAL WITH PARTICIPANT TRAINING IN ECON PLANNING. LOUIS BERGER, INC. & SYSTEM ASSOCIATES, INC. ENTERED INTO JOINT VENTURE CONTRACT TO PROVIDE ADVISORY TEAM OD TECHNICIANS TO ADVISE NEDB IN THE FORMULATION OF THE NEED PLAN.AMER TECH ASSIISTANCE CORP (ATAC) CONTRACTED TO ASSIST IN THE PREPARATION OF MACRO-ECON SECTION OF RTG"S THIRD 5-YEAR NATIONAL ECON PLAN.AUDITORS ASSESSED 3 -YEAR PERFORMANCE OF BERGER/SYSTEMS ASSOCIATES CONTRACTORS, FINDING ADVISORY TEAM REPEATEDLY BEHIND SCHEDULE IN ACHIEVING OBJECTIVES. ALREADY-DESIGNATED CONTRACT MEMBERS DELAYED PROJ"S INITIAL PHASE BY THEIR LATE AND SPORADIC ARRIVALS. CONTRACTORS REPEATEDLY DID NOT EMPLOY "SYSTEMS" OR MACRO APPROACHES SPECIFIED IN SCOPE OF WORK, FAILING THEREBY TO ATTAIN EXPECTATIONS OF THEIR THAI COUNTERPARTS. BERGER/SYSTEMS ASSOCIATES CONTRACT WAS APPROVED FOR A 3RD YEAR BY INTERIM USOM/RTG REVIEW TEAM WITH THE STIPULATION THAT THE PROPOSED NEED PLAN BE COMPLETED BY 1/31/71 TO PERMIT INCORPORATION INTO THE NATIONAL ECON PLAN. NEED PLAN WAS COMPLETED 7/1/71, TOO LATE FOR INCORPORATION INTO THE 5-YEAR PLAN, THUS DEFEATING PROJ PURPOSE AS THE PLAN WAS SUBSEQUENTLY PROMULGATED WITHOUT REGIONAL PLAN FOR NORTHEAST THAILAND. WHILE USOM INTERIM EVALUATION REPORTS HAD POINTED TO CONTRACTORS DIFFICULTIES, A DEFAULT NOTICE HADNOT BEEN CONSIDERED. AUDITORS RECOMMEND THAT USOM/THAILAND REMIND CONTRACT REPRESENTATIVES OF THEIR RESPONSIBILITY TO MEET OBJECTIVES AND THAT IN THE EVENT OF FUTURE NON-COMPLIANCE, MISSION SHOULD NOT FAIL TO ISSUE DEFAULT NOTICE. AUDITORS DO NOT REPORT ON ATAC CONTRACT PERFORMANCE.