Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, October 18, 1994                   TAG: 9410180127
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-4   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

U.S. BILLED FOR PERKS

``At a time of tight fiscal constraints, limited tax dollars designed for defense or environmental protection should not be squandered on expensive rock concerts ... or tennis court time,'' Rep. John Dingell, D-Mich., wrote to Alice Rivlin, director of the Office of Management and Budget.

Since July, Dingell's staff on the House Energy and Commerce investigations subcommittee has been compiling information on contractor charges for recreation and ``employee morale.''

Dingell released the report less than a week after President Clinton signed a law that rewrites government contracting rules. The law allows federal employees to go bargain hunting for goods and services and changes contracting rules to prohibit charges for entertainment.

However, future regulations will determine whether employee gifts and recreation activities can be charged to taxpayers.

The House investigators said that Defense Department auditors this month questioned $3.3 million in contractor entertainment and recreation charges and $832,000 for employee awards and gifts.

Several of the findings involved expenditures by Martin Marietta, based in Bethesda, Md.

The company or its subsidiaries charged the government $263,000 for a Smokey Robinson concert in Denver; $417,629 between Oct. 1, 1991, and last July 24 for maintenance and operation of a recreational park for company employees at Oak Ridge, Tenn.; $20,194 for professional quality golf balls over the last three fiscal years; and $7,589 in fiscal 1994 for a Christmas party account in Oak Ridge, including $200 for a performer to play Santa Claus at a party for employees' children.

The defense and energy contractor also charged $4,032 for volleyball officials in the 1993-94 season at Oak Ridge, in addition to $8,964 for softball officials and $4,482 for scorekeepers during the 1993 season.

Other findings:

$12,650 for condominium fees, charged as ``employee recreation'' by CTA, a defense contractor in Rockville, Md.

$243,000 in employee morale charges by Ecology and Environment Inc., of Lancaster, N.Y.; and $37,000 for recreational activities including employee tennis lessons and court time, bike races, golf tournaments and company-sponsored softball and soccer leagues.

Ron Frank, vice president for finance, said the environmental firm bills such items as overhead costs to all its customers. Frank estimated the government's share was only about a third as large as House investigators reported.