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County Cancels Biggest Contract in Wake of Audit

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The Board of Supervisors on Tuesday terminated Los Angeles County’s largest private contract, reacting to an audit that determined the pact had cost taxpayers $1 million more than expected.

The five-year, $65-million contract with Holmes & Narver Services to maintain and repair the county’s 6,500-vehicle fleet was expected to save $1 million a year when it was approved by the board in 1988.

The unanimous vote to terminate the contract was a setback for the board’s three-member conservative majority, which had heralded the practice of hiring private firms to take over jobs formerly done by county employees as cost-effective.

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