Learned and other Papers of InterestLearned and other Papers of Interest Defense Acquisitions: Opportunities for the Army to Position Its Ground Force Modernization Efforts for Success, by Michael J. Sullivan, director, acquisition and sourcing management, before the Subcommittee on Air and Land Forces, House Committee on Armed Services. GAO-10-493T, March 10, 2010.
What GAO Recommends: In its draft report that is currently with DOD for comment, GAO recommended that the Secretary of Defense mandate the Army correct the identified maturity and reliability issues with the Increment 1 systems and network prior to approving any additional production lots. The GAO also recommended the Secretary of the Army not field the Increment 1 network or systems until the identified maturity and reliability issues have been corrected.
DOD has not yet responded to the GAO recommendations.
Highlights
Space Acquisitions: DOD Poised to Enhance Space Capabilities, but Persistent Challenges Remain in Developing Space Systems, by Cristina Chaplain, director, acquisition and sourcing management, before the Subcommittee on Strategic Forces, Senate Committee on Armed Services. GAO-10-447T, March 10, 2010.
What GAO Found A long-standing problem in DOD space acquisitions is that program and unit costs tend to go up significantly from initial cost estimates, while in some cases, the capability that was to be produced declines. This problem persists. However, DOD has made progress on several of its high-risk space programs and is expecting to launch new generations of satellites across various missions over the next 12 months that should significantly advance some capabilities, particularly protected communications and space surveillance. While DOD is having success in readying some satellites for launch, other space acquisition programs currently in development face challenges that could further increase costs and delay targeted delivery dates. Another risk facing DOD space programs over the next few years is the potential for launch delays because of changes being made in the launch sector and an increase in the demand for certain DOD launch vehicles.
Highlights
Joint Strike Fighter: Significant Challenges Remain as DOD Restructures Program, by Michael Sullivan, director, acquisition and sourcing management, before the Senate Committee on Armed Services. GAO-10-520T, March 11, 2010.
Memorandum For The Heads Of Executive Departments And Agencies-Guidance on the Use of Challenges and Prizes to Promote Open Government, March 08, 2010. See Part III. Potential Legal Authority Issues for Consideration for grants and cooperative agreements, procurements and other transactions.
Cybersecurity: Progress Made but Challenges Remain in
Defining and Coordinating the Comprehensive National Initiative,
GAO-10-338, March 5, 2010.
Why GAO Did This Study In
response to the ongoing threats to federal systems and operations posed
by cyber attacks, President Bush established the Comprehensive National
Cybersecurity Initiative (CNCI) in 2008. This initiative consists of a
set of projects aimed at reducing vulnerabilities, protecting against
intrusions, and anticipating future threats. GAO was asked to determine
(1) what actions have been taken to develop interagency mechanisms to
plan and coordinate CNCI activities and (2) what challenges CNCI faces
in achieving its objectives related to securing federal information
systems. To do this, GAO reviewed CNCI plans, policies, and other
documentation and interviewed officials at the Office of Management and
Budget (OMB), Department of Homeland Security, and the Office of the
Director of National Intelligence (ODNI), among other agencies. GAO also
reviewed studies examining aspects of federal cybersecurity and
interviewed recognized cybersecurity experts.
Highlights -
Defense
Acquisitions: Missile Defense Transition Provides Opportunity to
Strengthen Acquisition Approach. GAO-10-311, February 25, 2010.
What GAO Recommends: GAO makes a number of recommendations
for MDA to increase transparency and accountability through more
thorough and consistent reporting of baselines and variances to those
baselines. In addition, GAO recommended that MDA apply more
knowledge-based approaches to its new acquisition initiatives and report
these initiatives and their associated commitments to Congress. In
response, DOD fully concurred with 9 of the 10 recommendations and
partially concurred with 1. Highlights
U.S. - Canada Agreement on Government Procurement
The agreement settling the dispute between Canada and the U.S. on the Buy American provisions of the Stimulus Bill is now available.
The Department of Defense’s Use of Private Security Contractors in Iraq and Afghanistan: Background, Analysis, and Options for Congress, by Moshe Schwartz Specialist in Defense Acquisition, Congressional Research Service, January 19, 2010.
Introduction
The 111th Congress is grappling with a broad range of issues regarding the use of private security contractors (PSCs) to provide security for people and property in Iraq and Afghanistan. The United States has gradually increased the tasks for which it contracts with private companies in military operations. Congress has generally accepted the concept of using unarmed contractors to carry out support functions in military operations, such as providing food and laundry services, although not without concerns regarding the costs of contracts and alleged favoritism in issuing them.1 But for the Department of Defense (DOD), Iraq and Afghanistan present new challenges. The United States is relying heavily, apparently for the first time during combat or stability operations, on private firms to supply a wide variety of security services. Given the shortage of U.S. troops, PSCs are widely viewed as being vital to U.S. efforts in the region. Many Members are concerned about transparency, accountability, and legal and symbolic issues raised by the use of armed civilians to perform security tasks formerly performed primarily by military personnel, as well as about the negative effect that PSCs may be having on U.S. counterinsurgency efforts.
This report discusses the types of work performed by PSCs, why DOD uses PSCs, and the number of armed security contractors working in Iraq and Afghanistan. The report also examines whether the use of PSCs could undermine U.S. efforts in the region.
Defense Acquisitions: Status of DOD's Implementation of Independent Management Reviews for Services Acquisitions. GAO-10-284, January 28, 2010.
Why GAO Did This Study
The Department of Defense (DOD) is the federal government’s largest purchaser of contractor-provided services, obligating more than $207 billion on services contracts in fiscal year 2009. DOD contract management has been on GAO’s high-risk list since 1992, in part because of continued weaknesses in DOD’s management and oversight of contracts for services.
Highlights
Defense Contracting: DOD Has Enhanced Insight into Undefinitized Contract Action Use, but Management at Local Commands Needs Improvement. GAO-10-299, January 28, 2010.
What GAO Recommends:
GAO recommends that the Secretary of Defense revise defense regulations to provide specific guidance for how to develop, consider, and document assessments of cost risk for profit or fee for all undefinitized contract actions. In written comments, DOD agreed with the recommendations.
Highlights
Defense Contracting:
Recent Law Has Impacted Contractor Use of Offshore Subsidiaries to
Avoid Certain Payroll Taxes. GAO-10-327, January 26, 2010.
What GAO Found(Partial) Many of the top 29 U.S. publicly
traded defense contractors—those with $1 billion or more in DOD
contracts in fiscal year 2008—have created offshore subsidiaries to
facilitate global operations. Between fiscal years 2003 and 2008, they
increased their use of these subsidiaries by 26 percent, maintaining at
least 1,194 in 2008. We interviewed 13 of the 29 contractors based on a
range of the amount of government work, locations of subsidiaries, and
industry types; they reported that 97 percent of the subsidiaries
generally supported global commercial and foreign government clients,
while the remaining 3 percent supported DOD contracts performed
overseas. These subsidiaries also helped the 29 contractors reduce
taxes, with about one-third decreasing their effective U.S. corporate
tax rates in 2008 in part through the use of foreign affiliates, lower
foreign tax rates, and indefinite reinvestment of foreign income outside
of the United States. Highlights
GAO Bid Protest Annual Report to the Congress for Fiscal Year 2009, January 8, 2010.
Addressing Tax Delinquency by Government Contractors, Presidential Memorandum, 75 Fed. Reg. 3977, January 20, 2010.
Defense
Acquisitions: Managing Risk to Achieve Better Outcomes, by Paul
Francis, managing director, and William Woods, director, acquisition and
sourcing management; and Michael Golden, managing associate general
counsel, before the Subcommittee on Defense, House Committee on
Appropriations. GAO-10-374T, January 20, 2010.
Why GAO
Did This Study: In fiscal year 2009, the Department of Defense
(DOD) spent nearly $384 billion on contracts. This investment,
representing over 70 percent of total government contract spending,
highlights the great need to better manage risk in acquisitions. But DOD
has not always managed risks effectively: major systems continue to take
longer to develop, cost more, and deliver fewer quantities and
capabilities than originally planned. In addition, poorly managed growth
in services spending has contributed to disappointing program outcomes.
DOD weapon system acquisition and contract management have been on
GAO’s high-risk list for nearly 20 years Highlights
The Chinese government has requested comments on draft procurement regulations. A good English language translation version is here, and Adam Bobrow, afb3@georgetown.edu, is a potential point of contact if others are interested in submitting comments. The Chinese language original text of the proposed regulations is at http://www.gov.cn/gzdt/2010-01/11/content_1507655.htm; anyone interested in submitting comments can do so by submitting them to zfcg@chinalaw.gov.cn
Thanks to Chris Yukins, cyukins@law.gwu.edu
Briefing on Commercial and Department of Defense Space System Requirements and Acquisition Practices. GAO-10-315R, January 14. 2010.
From the introducion: The Department of Defense (DOD) has had long-standing difficulties developing and delivering space systems on time and within budget. Some programs have been delayed by years and cost billions of dollars more than their initial estimates. Attempts to reform DOD space acquisitions in the past have sought to leverage commercial approaches or rely more on the commercial sector to meet DOD needs. These efforts have not been successful and, in some cases, have exacerbated problems, particularly with respect to oversight.
Shay Assad Memorandum: Resolving Contract Audit Recommendations, December 04, 2009.
Excerpt: This memorandum sets forth DoD’s policy for resolving disagreements when the contracting officer does not include significant
audit report recommendations (excluding unsupported costs) from the
Defense Contract Audit Agency (DCAA) in establishing higher
pre-negotiation objective. For the purposes of this memorandum, a
significant disagreement is when the contracting officer in the
pre-negotiation objective plans to sustain less than 75 percent of the
total recommended questioned costs in a DCAA audit report on a contractor
proposal valued at $10 million or more.
Service-Disabled Veteran-Owned Small Business Program: Case Studies Show Fraud and Abuse Allowed Ineligible Firms to Obtain Millions of Dollars in Contracts. GAO-10-108, October 23, 2009.
What GAO Found
GAO found that the SDVOSB program is vulnerable to fraud and abuse, which could result in legitimate service-disabled veterans’ firms losing contracts to ineligible firms. The 10 case-study firms identified in this report received approximately $100 million from SDVOSB contracts through fraud or abuse of the program, or both. For example, contracts for Hurricane Katrina trailer maintenance were awarded to a firm whose owner was not a service-disabled veteran. GAO also found SDVOSB companies used as a pass-through for large, sometimes multinational corporations. In another case a full-time federal contract employee at MacDill Air Force Base set up a SDVOSB company that passed a $900,000 furniture contract on to a company where his wife worked, which passed the work to a furniture manufacturer that actually delivered and installed the furniture. ...
GAO found that the government does not have effective fraud-prevention controls in place for the SDVOSB program. Specifically, SBA and agencies awarding SDVOSB contracts do not have processes in place to validate a firm’s eligibility for the program prior to bid submission. SBA and contracting agencies also currently do not have a database of individuals that are service- disabled veterans, a key eligibility requirement for the program. According to VA, it is developing a database, called VetBiz, of validated SDVOSBs, but currently it is only used for contracting by the VA. SBA’s bid-protest process is the only governmentwide control over the SDVOSB program. However, although ineligible firms have been identified through bid protests, firms found ineligible do not face real consequences, can be allowed to complete the contracts received, and are not suspended or debarred.
Highlights
Weapon Systems Acquisition Reform Act Organizational Conflicts of Interest Requirements, 74 Fed. Reg. 57666, November 09, 2009, Notice of meeting,
SUMMARY:
DoD is hosting a public meeting to establish an initial dialogue with industry and Government agencies about the requirements of section 207 of the Weapon Systems Acquisition Reform Act of 2009 (WSARA) relating to organizational conflicts of interest (OCI).
Time and Date: December 8, 2009, 1 p.m. to 4 p.m., EST
ADDRESSES: GSA Auditorium, 1800 F Street, NW., Washington, DC.
CONTINGENCY CONTRACTING
Further Improvements Needed in Agency Tracking of Contractor Personnel and Contracts in Iraq and Afghanistan, GAO Testimony, November 02, 2009.
Summary
SIGIR Quarterly Report, October 2009,
Preparing for the Wake of Withdrawal:
As the U.S. military draws down across Iraq, the capacities, roles, and responsibilities of the civilian reconstruction agencies inevitably will be affected. Moreover, the drawdown will occur against the backdrop of a still-fragile (though markedly improved) security situation and a season of campaigning for Iraq’s upcoming parliamentary elections, the most important electoral event in Iraq since 2005.
Contract Management: Extent of Federal Spending under Cost-Reimbursement Contracts Unclear and Key Controls Not Always Used, GAO-09-921, September 30, 2009,
What GAO Recommends GAO is making recommendations to the Office of Federal Procurement Policy (OFPP) regarding how contracts are coded in the governments procurement database and aimed at encouraging timely analysis to determine if a transition can be made to a contract with a firmer pricing basis. OFPP agreed with the recommendations. The other agencies in GAOs review generally agreed with the findings in the
report or had no comments.
Highlights
Fiscal Year 2008 Defense Advanced Research Projects Agency Services Contracts Inventory,
Fiscal Year 2008 TRICARE Management Activity Services Contract Inventory
74 Fed. Reg. 56185, October 30, 2009.
Office of Federal Procurement Policy
Briefing Room - Presidential Memorandum on Government Contracting, including “Increasing Competition and Structuring Contracts for the Best Results” (October 27, 2009)
This memorandum provides general guidance and management practices that agencies can use to reduce contract risk. The memorandum includes guidelines for an ongoing review of high-risk contracting and information on an assessment process that will be used to gauge agencies' progress.
Fiscal Year
2008 Defense Information Systems Agency (DISA) Services Contract
Inventory; Availability,
Fiscal Year 2008 Defense Logistics Agency
Services Contract Inventory; Availability,
Inventory of Contracts for
Services, 74 Fed. Reg. 54971, October 26, 2009
Defense Management: Widespread DCAA Audit Problems Leave Billions of Taxpayer Dollars Vulnerable to Fraud, Waste, Abuse, and Mismanagement, by Gregory D. Kutz, managing director, forensic audits and special investigations, before the Defense Acquisition Reform Panel, House Committee on Armed Services. GAO-10-163T, October 15, 2009.
What GAO Found(Partial)
GAO found substantial evidence of widespread audit quality problems at DCAA. In the face of this evidence, DOD, Congress, and American taxpayers lack reasonable assurance that billions of dollars in federal contract payments are being appropriately scrutinized for fraud, waste, abuse, and mismanagement. An initial investigation of hotline allegations at three DCAA field office locations in California revealed that all 14 audits and 62 forward pricing reports GAO examined were not performed in accordance with professional auditing standards. For example, while auditing the satellite launch proposal for a major U.S. defense contractor, a DCAA manager experienced pressure from the contractor and the DOD buying command to drop adverse findings. The manager directed his auditors to drop the findings, and DCAA issued a more favorable opinion, allowing the contractor to win a contract that improperly compensated the contractor for hundreds of millions of dollars in commercial business losses. Specifically, of $271 million in unallowable costs related to commercial losses, the contractor has already been paid $101 million. This incident is under criminal investigation by the DOD Inspector General (IG).
Highlights
Fiscal Year 2008 Defense Contract Management Agency Services Contract Inventory, Notice, , 74 Fed. Reg. 52460, October 13, 2009.
SUMMARY: In accordance with section 2330a of title 10 United States Code as amended by the National Defense Authorization Act for Fiscal Year 2008 (NDAA 08) section 807, the DCMA Executive Director for Contracts, in coordination with the Office of the Director, Defense Procurement and Acquisition Policy, Office of Strategic Sourcing (DPAP/SS) will make available to the public the first inventory of activities performed pursuant to contracts for services. The inventory will be published to the DCMA Web site at the following location: http:// www.dcma.mil/siteindex.cfm#I.
Dates: Inventory to be made publicly available within 30 days of publication of this notice.
Fiscal Year 2008 Missile Defense Agency Services Contracts Inventory, Notice, 74 Fed. Reg. 52461, October 13, 2009.
SUMMARY: In accordance with section 2330a of title 10 United States Code as amended by the National Defense Authorization Act for Fiscal Year 2008 (NDAA 08) section 807, the Director of the Missile Defense Agency and the Office of the Director, Defense Procurement and Acquisition Policy, Office of Strategic Sourcing (DPAP/SS) will make available to the public the first inventory of activities performed pursuant to contracts for services. The inventory will be published to the Missile Defense Agency (MDA) Web site
at the following location: http:// www.mda.mil/barbb/barbb.htm
Dates: Inventory to be made publically available within 30 days after publication of this notice.
OFPP-MEMORANDUM FOR CHIEF ACQUISITION OFFICERS SENIOR PROCUREMENT EXECUTIVES, October 07, 2009.
FROM: Lesley A. Field Acting Administrator
SUBJECT: Improving Acquisition Data Quality for Fiscal Years 2009 and 2010
First paragraph As we increase the transparency of our acquisition activities in support of the Recovery Act, the Presidents March 4, 2009 Memorandum on Government Contracting, and related initiatives, we must continue our targeted efforts to improve the quality of data in the Federal Procurement Data System (FPDS). This memorandum outlines the steps agencies must take in FY 2010 to improve acquisition data quality.
Contract Management: Agencies Are Not Maximizing Opportunities for Competition or Savings under Blanket Purchase Agreements despite Significant Increase in Usage, GAO-09-792, September 9, 2009.
What GAO Recommends GAO recommends that the Office of Federal Procurement Policy (OFPP) clarify when establishing a BPA using the limited source justifications of the FAR is appropriate; increase competition under BPAs; and provide guidance on annual reviews. GAO also recommends that GSA assist agencies with language for discount requests. OFPP and GSA concurred with the recommendations
Highlights
OFPP-Interim Guidance on Reviewing Contractor Reports on the Use of Recovery Act Funds in Accordance with FAR Clause 52.204-11, MEMORANDUM FOR CHIEF ACQUISITION OFFICERS SENIOR PROCUREMENT EXECUTIVES FROM:Lesley A. Field Deputy Administrator, September 30, 2009.
Contingency Contracting: DOD, State, and USAID Continue to Face Challenges in Tracking Contractor Personnel and Contracts in Iraq and Afghanistan, GAO-10-1, October 1, 2009.
Why GAO Did This Study
The Departments of Defense (DOD) and State and the U.S. Agency for International Development (USAID) have relied extensively on contractors to provide a range of services in Iraq and Afghanistan, but as GAO has previously reported, the agencies have faced challenges in obtaining sufficient information to plan and manage their use of contractors.
As directed by the National Defense Authorization Act for Fiscal Year (FY) 2008, GAO analyzed DOD, State, and USAID data for Iraq and Afghanistan for FY 2008 and the first half of FY 2009 on the (1) status of agency efforts to track information on contracts and contractor personnel; (2) number of contractor personnel; (3) number of killed and wounded contractors; and (4) number and value of contracts and extent to which they were awarded competitively. GAO reviewed selected contracts and compared personnel data to other available sources to assess the reliability of agency-reported data.
Highlights
Developing a Performance Work Statement in a Deployed Environment, Center for Army Lessons Learned, 09-48, September 2009.
Table of Contents
•Foreword
•Introduction
•Chapter 1: Introduction to Performance Work Statements and Statements of Work
•Chapter 2: Contracting 101
•Chapter 3: English 101: Guidelines for Writing a Performance Work Statement
•Chapter 4: Eight Steps to Developing a Performance Work Statement
•Chapter 5: Government-Provided Support Considerations
•Appendix A: Blank Performance Work Statement Template
•Appendix B: Example of a Performance Work Statement for Grounds and Roads Maintenance
•Appendix C: Example of a Performance Work Statement for Shower and Hand-Washing Station Requirements
•Appendix D: Example of a Performance Work Statement for Shower and Hand-Washing Station Requirements
Federal Contracting: Observations on the Government's Contracting Data Systems, by William T. Woods, director, acquisition and sourcing management, before the Ad Hoc Subcommittee on Contracting Oversight, Senate Committee on Homeland Security and Governmental Affairs. GAO-09-1032T, September 29, 2009.
Why GAO Did This Study
The federal government relies heavily on contractors to carry out its missions, with fiscal year 2008 spending on contractor products and services of approximately $518 billion. Federal contracting data systems provide information on how these funds are being spent and how well the contractors are performing.
GAO’s testimony, which is based on prior reports, describes three governmentwide contracting data systems and the weaknesses GAO has identified with these systems.
Highlights
Attorney General Memorandum for Executive Departments and Agencies Concerning the Freedom of Information Act, Notice, 74 Fed. Reg. 49892, September 29, 2009.
SUMMARY: On January 21, 2009, the President issued a memorandum for the heads of executive departments and agencies on the Freedom of Information Act (FOIA). That memorandum required that the Attorney General issue new guidelines governing the FOIA to the heads of executive departments and agencies, reaffirming the commitment to accountability and transparency, and to publish such guidelines in the Federal Register. Pursuant to the Presidents directive, the Attorney General issued new FOIA guidelines on March 19, 2009. Those guidelines are now published here.[The Federal Register URL is bad, the memo is at http://www.usdoj.gov/ag/foia-memo-march2009.pdf ]
Defense Contracting Integrity: Opportunities Exist to Improve DOD’s Oversight of Contractor Ethics Programs. GAO-09-591, September 22, 2009.
Why GAO Did This Study
Until recently, ethics programs and practices of defense contractors were self-policed. Given the significant sums spent to acquire goods and services, the Federal Acquisition Regulation (FAR) was amended twice starting in December 2007 to first mandate and later amplify contractor ethics program rules. Before FAR changes were finalized in December 2008, Congress required GAO to report in 2009 on the ethics programs of major defense contractors. This report (1) describes the extent that contractors had ethics programs before the finalization of the FAR rules that included practices consistent with standards now required by the FAR and
(2) assesses the impact the new FAR rules have on Department of Defense (DOD) oversight of contractor ethics programs. To do this work, in September 2008 GAO surveyed all 57 contractors-those receiving more than $500 million in 2006 DOD contract awards-and interviewed DOD contractor oversight agency officials on the impact of the new FAR rules on oversight.
Highlights
PRESS Release, Government
Contract Law Judges Committee, Washington, D.C., September 02, 2009. GOVERNMENT
CONTRACT JUDGES EVALUATION GROUP FORMED
A new group will evaluate the government
contract qualifications and experience of applicants, and make
recommendations, for appointments to the United States Court of Appeals
for the Federal Circuit and the United States Court of Federal Claims,
according to Judge (Ret.) Ruth C. Burg, Chair of the new organization.
Army Services Contract Inventory Pursuant to Section 807
of the National Defense Authorization Act for Fiscal Year 2008, Notice
of publication, 74 Fed. Reg. 42653, August 24, 2009.
SUMMARY: In accordance with section 2330a of Title 10 United
States Code as amended by the National Defense Authorization Act for
Fiscal Year 2008 (NDAA 08) section 807, the Assistant Secretary of the
Army (Manpower and Reserve Affairs) (ASA(M&RA)), in cooperation with the
Deputy Assistant Secretary of the Army (Procurement) (DASA (P)), and the
Office of the Director, Defense Procurement and Acquisition Policy
(DPAP) will make available to the public its inventory of activities
performed pursuant to contracts for services. The inventory will be
published to the ASA(M&RA) Web site at the following location: http:
//www.asamra.army.mil/insourcing/.
Dates: Inventory to be made publically
available within September 23, 2009.
RFQ-DC-09-00250, The US Environmental Protection Agencys (EPA) Office of Acquisition Management (OAM) is seeking quotes for the Office of Grants and Debarments (OGD) in compiling and writing a report on the history and development of the EPA suspension and debarment program, in conjunction with the history and development of the Government-wide Federal suspension and debarment system, including development and evolution of both the procurement and non-procurement versions of the suspension and debarment systems.
Principle needs to be an attorney.
Federal Contracting: Application of OMB Guidance Can Improve Use of Award Fee Contracts, by John Hutton, director, acquisition and sourcing management, before the Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security, Senate Committee on Homeland Security and Governmental Affairs. GAO-09-839T, August 3, 2009
Improving Government Acquisition, OMB Memorandum, July 29, 2009.
Improving the Use of Contractor Performance Information, Memorandum for Chief Acquisition Officers, July 29, 2009, Lesley A. Field, Deputy Administrator, OFPP
NEW INFORMATION ABOUT CONTRACTING PREFERENCES FOR ALASKA
NATIVE CORPORATIONS (PART II), Senate Committee on Homeland Security
& Governmental Affairs SUBCOMMITTEE ON CONTRACTING OVERSIGHT, Majority
Staff,
From the Executive Summary
In the 1980s and early 1990s, Congress passed a series of laws which
made Alaska Native Corporations (ANCs) eligible for federal contracting
opportunities for socially and economically disadvantaged minority-owned
businesses, including the Small Business Administrations 8(a) program.
These designations and several subsequent legislative and regulatory
preferences now allow ANCs to enjoy competitive advantages and benefits
not available to other 8(a) small business participants. The most far
reaching of these preferences is the ANCs ability to be awarded no-bid
federal contracts of unlimited value. ANCs can also have multiple 8(a)
subsidiaries and remain in the 8(a) program indefinitely.
Grants Management: Grants.gov Has Systemic Weaknesses That Require Attention, GAO-09-589, July 15, 2009.
What GAO Found:
Grants.gov has made it easier for applicants to find grant opportunities and grantors to process applications faster, but applicants continue to describe difficulties registering with and using Grants.gov, which sometimes result in late submissions. Grants.gov customer service staff do not always resolve these issues, especially during off-peak hours and peak submission periods.
Clear roles and responsibilities for the Grants.gov oversight entities and coordination among them are critical, yet insufficient, and there are no written policies for how these entities are to work with each other. HHSs Chief Information Officer and the Grants Executive Board (GEB) share responsibility for approving major initiatives and funding for Grants.gov, but there is little evidence that GEB-approved funding for Grants.gov is considered in HHSs review of Grants.gov as an IT investment. This created a disconnect between the services Grants.gov is to provide and the funding needed to purchase them. Untimely payment by the 26 agencies that fund Grants.gov also negatively affects system performance. After informing agencies that it was unable to pay its vendors, the Grants.gov Project Management Office (PMO) developed a system shutdown plan and implemented the first stepit eliminated Web site updates and moved all notices to the Grants.gov blog. Grants.gov also lacks performance measures for important aspects of the system. Finally, grantees lack a structured forum for input on the Grants.gov system and standardized governmentwide grant application policies, limiting grantees ability to affect a system designed, in part, to streamline the grants application process and ease applicant burden.
Disparate agency policies on important aspects of processing applicationssuch as the criteria for granting appeals for late or incomplete applications and for what constitutes a timely applicationburden applicants and sometimes puts applications submitted through Grants.gov at a disadvantage compared to applications submitted through other means, such as other electronic systems or the USPS.
Highlights
Coast Guard: As Deepwater Systems Integrator, Coast Guard Is Reassessing Costs and Capabilities but Lags in Applying Its Disciplined Acquisition Approach. GAO-09-682, July 14, 2009,
Why GAO Did This Study;
As Deepwater Systems Integrator, Coast Guard Is Reassessing Costs and Capabilities but Lags in Applying Its Disciplined Acquisition Approach
Highlights of GAO-09-682, a report to congressional committees
The Deepwater Program includes efforts to build or modernize ships and aircraft and to procure other capabilities. In 2002, the Coast Guard contracted with Integrated Coast Guard Systems (ICGS) to manage the acquisition as systems integrator. After a series of project failures, the Coast Guard announced in April 2007 that it would take over the lead role, with future work on individual assets bid competitively, and a program baseline of $24.2 billion was set. In June 2008, GAO reported on the Coast Guards progress and made several recommendations, which the Coast Guard and the Department of Homeland Security (DHS) have addressed. In response to a Senate report accompanying the DHS Appropriations Bill, 2009, GAO addressed (1) efforts to manage Deepwater, (2) changes in cost and schedule of the assets, and (3) efforts to build an acquisition workforce. GAO reviewed Coast Guard and DHS documents and interviewed officials.
Highlights
A couple of SPAWAR program types and a number of contractor people have just been indicted in San Diego for bribes, false claims, and related offenses. It was a pretty greedy scheme. Im attaching a copy of the indictment. Please feel free to pass it on. Jack Friery (619) 218-7342 www.jackfriery.com
DOD-Commercial Item Handbook, Request for public input. 74 Fed. Reg.
31416, July 01, 2009
SUMMARY: DoD is in the process of
updating its Commercial Item Handbook. The purpose of the Handbook is to
help acquisition personnel develop sound business strategies for
procuring commercial items. DoD is seeking industry input on the
contents of the draft Handbook.
Dates: Submit written
comments to the address shown below on or before July 31, 2009.
ADDRESSES: Submit comments to: Office of the Director,
Defense Procurement and Acquisition Policy, Attn: OUSD(AT&L)DPAP(CPIC),
3060 Defense Pentagon, Washington, DC 20301-3060. Comments also may be
submitted by email to CI_Handbook@osd.mil.
FOR FURTHER INFORMATION
CONTACT: Ms. Linda Heartley, by telephone at 703- 695-7062, or by
e-mail at Linda.Heartley@osd.mil.
SUPPLEMENTARY
INFORMATION: DoD formed a working group, consisting of personnel
from the military departments and defense agencies, to update the
Commercial Item Handbook issued by the Office of the Secretary of
Defense (Acquisition, Technology, and Logistics) in November 2001. A
draft of the updated Commercial Item Handbook can be found at http://www.acq.osd.mil/
dpap/cpic/cp/docs/
Federal Contracting: Guidance on Award Fees Has Led to Better Practices but Is Not Consistently Applied. GAO-09-630, May 29, 2009.
What GAO Found
From fiscal year 2004 through fiscal year 2008, agencies have spent over $300 billion on contracts that include monetary incentives, or award fees, for performance that is evaluated against subjective criteria. OMB’s guidance on using award fees includes principles such as limiting the opportunities for earning unearned fees in subsequent periods, linking award fees to acquisition outcomes, designing evaluation criteria to motivate excellent performance, and not paying for performance that is unsatisfactory. These principles are largely reflected in DOD’s and NASA’s updated guidance on the use of award fees. For example, DOD now prohibits payment of award fees for unsatisfactory performance, and NASA requires a documented cost-benefit analysis to support the use of an award fee contract. However, DOE, DHS, and HHS vary in the extent to which their agency-wide guidance reflects the OMB guidance. These departments generally rely on operational divisions to develop award fee guidance; however, many acquisition professionals at these agencies were unaware of the contents of the OMB guidance.
Highlights
Contract Management: Minimal Compliance with New Safeguards for Time-and-Materials Contracts for Commercial Services and Safeguards Have Not Been Applied to GSA Schedules Program. GAO-09-579, June 24, 2009.
What GAO Recommends
GAO recommends that OFPP take steps to clarify the FAR regarding labor-hour contracts and to explicitly apply the Part 12 safeguards to the GSA schedules program, and that it provide guidance to contracting officials on the Part 12 D&F. In oral comments, OFPP agreed with our recommendations. The other six agencies in our review also concurred or had no comment
Highlights
Defense Acquisitions: Issues to Be Considered for Army's Modernization of Combat Systems, by Paul L. Francis, managing director, acquisition and sourcing management, before the Subcommittee on Airland, Senate Committee on Armed Services. GAO-09-793T, June 16, 2009.
Why GAO did this study
Future Combat System (FCS) has been at the center of the Armys efforts to become a lighter, more agile, and more capable combat force by replacing existing combat systems with a family of manned and unmanned vehicles and systems, linked by an advanced information network. To meet the challenges of FCSs scope and schedule, the Army contracted with Boeing to be lead systems integrator (LSI), to help define, develop, and integrate FCS systems.
Highlights
PowerPoint Presentation on Implementation of the American Recovery and Reinvestment Act of 2009,
May 16, 2009,
Spring Council Meeting of the ABA Public Contract Law Section in New Orleans. Item is under the News heading
At What
Cost? Contingency Contracting In Iraq and Afghanistan, Commission on
Wartime Contracting In Iraq and Afghanistan, June 10, 2009, Interim
Report to Congress.
Executive Summary
Since 2001, Congress has appropriated about $830 billion to fund U.S.
operations in Iraq and Afghanistan. Over that period, Americas reliance
on contractors has grown to unprecedented proportions to support
logistics, security, and reconstruction efforts related to those
operations. More than 240,000 contractor employeesabout 80 percent of
them foreign nationalsnow work in Iraq and Afghanistan, supporting the
Department of Defense. Additional contractor employees support the
Department of State and the U.S. Agency for International Development.
The Commission will address nine focus areas in preparation of its Final
Report. While these may be some of the most intractable issues, if
successfully addressed they hold the greatest promise for significant
reform in contingency contracting. They are:
•leadership, culture, and accountability within the key agencies responsible for
contingency operations;
• staffing and training of the federal acquisition workforce;
• predeployment planning for contractor support and integration;
•policies related to inherently governmental functions;
• the process for defining contract requirements;
•contract pricing and competition;
• contractor performance and cost effectiveness;
• visibility into and accountability of subcontractorsin particular, foreign
subcontractors; and
•the Iraq drawdown and the Afghanistan buildup.
This Interim Report to Congress
addresses problems in our system of framing, managing, and overseeing
contracts that support American military, diplomatic, and reconstruction
activities. Some of these problems, noted below as Issues of Immediate
Concern, require prompt attention as well as systematic study and
ultimately recommendations for statutory, regulatory, or organizational
change.
The report reviews longs-tanding
issues such as shortages of trained acquisition personnel that still
plague U.S. operations. It also addresses the heavy reliance on foreign
subcontractors who may not be accountable to any American governmental
authority. It calls attention to new concerns such as the implications
of hiring foreign contract workers to guard U.S. military bases. And it
takes note of the inadequate plans and resources available to manage an
enormous task of shipping property back to the United States or to other
areas of U.S. operations, transferring it to the Iraqi government, or
disposing of it as we leave Iraq and bolster operations in Afghanistan.
U.S. Department of State Advisory Committee on Private
International Law: Working Group I of the United Nations Commission on
International Trade Law (UNCITRAL) Model Law on Procurement of Goods,
Construction and Services, Public meeting, 74 Fed. Reg. 26914, June
04, 2009.
Partial SUMMARY: The UNCITRAL Working Group,
tasked with making recommendations for an updated model law, has focused
on new practices and technological developments; in particular, those
resulting from the use of electronic communications in public
procurement. These topics have included the use of electronic means of
communication in the procurement process, publication of
procurement-related information, the procurement technique known as the
electronic reverse auction, abnormally low tenders, and the method of
contracting known as framework agreements. The Working Group also
decided that the Model Law and the Guide should take into account the
question of conflicts of interest. In this regard, the United Nations
Convention Against Corruption, which entered into force in December
2005, specifically calls for anti-corruption measures in procurement to
address conflicts of interest. See also Report of Working Group I
(Procurement A/CN.9/668) on the work of its fifteenth session (New York,
26 February 2009) available at http://www.uncitral.org/uncitral/en/
commission/working_groups/ 1Procurement.html.
It is possible that a revised model
procurement law will be presented for final review by UNCITRAL in 2009.
The issue has been placed on the agenda of the Commission for its June
29July 17 session in Vienna. The UNCITRAL Working Group has recommended
that the Model Law be considered for adoption by UNCITRAL in advance of
the completion of an updated Guide to Enactment. UNCITRAL has also
scheduled a Working Group meeting from May 26th through 29th, 2009, to
work on the recommendations.
In
order to assist the U.S. Delegation at the Annual UNCITRAL Commission
meeting in July, a public meeting to review and discuss the current
status of the proposed reforms will be held on June 17, 2009.
Time and Place: The public meeting will take place at The
George Washington University Law School, Dean Conference room, 2000 H
Street, NW., Washington, DC on June 17, 2009 from 10 a.m. to 12 noon EDT.
Analog Government in a Digital Age
June 2, 2009. Center for American Progress,
Introduction Government and Web 2.0 grew up in different neighborhoodsthey don’t play by the same rules, said Andrew Sherry, Senior Vice President for Online Communications at the Center for American Progress at a CAP event on Monday. Barack Obama’s campaign embraced the participatory nature of Web 2.0, but using social media in the federal government is a different proposition, with different rules.
The event’s expert panel included Peter Swire, CAP Senior Fellow and Ohio State law professor; Alec Ross, senior advisor for innovation to Secretary of State Hillary Clinton; Tim O’Reilly, founder and CEO of O'Reilly Media, Inc.; and Faiz Shakir, Research Director for The Progress Report and ThinkProgress.org at Center for American Progress Action Fund. The event coincided with the release of several papers authored by Swire exploring the White House’s use of Web 2.0 technology and challenges facing its implementation.
The Obama administration has done more than previous administrations to experiment with new media and Web 2.0 technologies, but it has still been timid in some applications. "A government is a means of collective action," said O’Reilly, especially as the Founding Fathers envisioned ours. "Technology, he said, gives us an amazing chance to update that vision." Indeed, the Obama administration has already begun to use technology to engage the public despite some initial hurdles.
Those hurdles are what differentiates governing with technology from campaigning with it. Three major challenges to implementing Web 2.0 technologies are scalethe large volume of communication to small number of staff ratio; clearancethe issue of getting an accurate and useful response that has been cleared with all relevant agencies; and limits on how the government can delegate outsiders to act on its behalf. As the lawyer for www.change.gov and www.whitehouse.gov during the Obama transition, Swire helped the transition team address these issues.
See also: How to Buy Free Software,
Procuring Web 2.0 Technology for the Federal Government
Federal Contractors: Better Performance Information Needed to Support Agency Contract Award Decisions. GAO-09-374, April 23, 2009.
What GAO Recommends
GAO is making recommendations to the Office of Federal Procurement Policy and selected agencies aimed at facilitating sharing and use of past performance information. All agencies agreed with the recommendations.
Highlights
OFPP-Determination of Executive Compensation Benchmark
Amount, 74 Fed. Reg. 23893, May 21, 2009,
SUMMARY: :
The Office of Management and Budget is publishing the attached
memorandum to the Heads of Executive Departments and Agencies concerning
the determination of the maximum benchmark compensation amount that will
be allowable under government contracts during contractors’ fiscal year
2009—$684,181. This determination is required under Section 39 of the
Office of Federal Procurement Policy (OFPP) Act (41 U.S.C. 435) as
amended. The benchmark compensation amount applies equally to both
defense and civilian procurement agencies.
Special Inspector General for IRAQ Quarterly Report, April 30, 2009.
April 30, 2009 Quarterly Report to Congress
Several landmark events shaped continuing relief and reconstruction efforts this quarter:
Governance. On January 31, 2009, the Government of Iraq (GOI) conducted long awaited provincial elections in 14 of Iraq’s 18 provinces, choosing new Provincial Councils that will play increasingly important roles in Iraq’s reconstruction. In several ethnically and denominationally mixed provinces, election results corrected representational imbalances caused by the Sunni boycott of the 2005 provincial elections. Moreover, the provincial elections inaugurated a “year of elections” in Iraq, which will culminate in December with parliamentary elections, the first plebiscite on Prime Minister Nouri al-Maliki's governing coalition.
Security. Pursuant to the January 1, 2009, Security Agreement (SA), the GOI now has responsibility for security across the entire country. The GOI also has assumed management control of the U.S.-sponsored Sons of Iraq (SOI), which had comprised almost 100,000 Sunni men, many of whom previously participated in or were subject to insurgent activity. The new U.S. Administration also announced its strategy to draw down U.S. forces in Iraq over the next several years.
Economy. On April 2, 2009, Iraq’s Presidency Council ratified a $58.6 billion budget for 2009. Oil price fluctuations forced the GOI to downwardly revise its budget three times before finally passing it (the initial proposal was about $80 billion). The GOI is pursuing new means for revenue generation, including increasing efforts to attract more foreign investment.
Acquisition Workforce: DOD Can Improve Its Management
and Oversight by Tracking Data on Contractor Personnel and Taking
Additional Actions, by John K. Needham, director, acquisition and
sourcing management, before the Subcommittee on Oversight and
Investigations, House Committee on Armed Services. GAO-09-616T, April
28, 2009.
What GAO Found: Although contractor personnel are a
key segment of its total acquisition workforce, DOD lacks critical
departmentwide information on the use and skill sets of these personnel.
DOD also lacks information on why contractor personnel are used, which
limits its ability to determine whether decisions to use contractors to
supplement the in-house acquisition workforce are appropriate. GAO found
that program office decisions to use contractor personnel are often
driven by factors such as quicker hiring time frames and civilian
staffing limits, rather than by the nature or criticality of the work.
In comparison with DOD’s practices, leading organizations maintain
and analyze data on their contractor personnel and take a
business-oriented approach to determining when to use contractor support.
Highlights
D-2009-071 Summary of DoD Office of Inspector General
Audits of Acquisition and Contract Administration, April 22, 2009
(Project No. D2006-D000CK-0270.000)
What We Did Our overall
objective was to summarize the DoD Inspector General reports that
discussed deficiencies in the acquisition and contract administration
process within DoD. Specifically, we reviewed and summarized
acquisition- and contract administration-related audit reports that the
DoD Inspector General issued from FY 2003 through FY 2008. These reports
discussed issues related to the Government Accountability Office
high-risk areas of weapon systems acquisition, contract management, and
Management of interagency contracts. This summary could be used by DoD
acquisition and contract managers as lessons learned in drafting key
initiatives that address these high-risk areas or provide a resource for
training personnel in the Defense Acquisition Workforce Improvement Act
career fields.
D-2009-070 Government Purchase Card Controls at United
States Special Operations Command, April 16, 2009 (Project No.
D2008-D000FJ-0011.000)
What We Recommend We recommend the
Assistant Secretary of the Navy (Financial Management and Comptroller)
credit the rebates to Special Operations Command entities, review the
entity and appropriation sources of all rebates received, and determine
whether the Department of the Navy may appropriately retain the rebates.
We recommend that the Commander, Marine Corps Forces, Special Operations
Command require cardholders and approving officials to follow the proper
procedures when using Government purchase cards.
DOL-Announcing the New iCERT Portal System for Temporary
and Permanent Labor Certifications, 74 Fed. Reg. 17545, April 15,
2009.
SUMMARY: The Employment and Training
Administration (ETA) is announcing a new electronic system for
submitting the Labor Condition Application (LCA) and the Application for
Permanent Employment Certification.
Dates: This Notice
is effective April 15, 2009.
Book Review-PRIVATE SECTOR, PUBLIC WARS: CONTRACTORS IN COMBATAFGHANISTAN, IRAQ AND FUTURE CONFLICTS, by James Jay Carafano, Reviewed By Major Steve Berlin, Military Law Review - Volume 199 - Spring 2009
OMB PUBLISHES UPDATED GUIDANCE TO AGENCIES FOR IMPLEMENTING THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 Friday, April 3, 2009 On April 3, 2009, the Office of Management and Budget (OMB) published Implementing Guidance for the American Recovery and Reinvestment Act of 2009 ("Recovery Act"). This is the second installment of detailed government-wide guidance for carrying out programs and activities enacted in the Recovery Act. This updated guidance supplements, amends and clarifies the initial guidance issued by OMB on February 18, 2009 (Initial Implementing Guidance for the American Recovery and Reinvestment Act of 2009, M-09-10). Updates to the guidance are based on ongoing input received from the public, Congress, state and local government officials, grant and contract recipients and federal personnel.
Defense Acquisitions: Measuring the Value of DOD's Weapon Programs Requires Starting with Realistic Baselines, by Michael J. Sullivan, director, acquisition and sourcing management, before the Panel on Defense Acquisition Reform, House Committee on Armed Services. GAO-09-543T, April 1, 2009.
Why GAO Did This Study: In 2008, the cumulative cost growth in the Department of Defense’s portfolio of 96 major defense acquisition programs was $296 billion and the average delay in delivering promised capabilities to the warfighter was 22 months. These poor outcomes mean that other critical defense and national priorities may go unfunded and that warfighters may go without the equipment they need to counter the changing threats that they face.
Highlights
Contingency Contracting: DOD, State, and USAID Are Taking Actions to Track Contracts and Contractor Personnel in Iraq and Afghanistan, by John P. Hutton, director, acquisition and sourcing management, before the Subcommittee on Oversight and Investigations, House Committee on Armed Services. GAO-09-538T, April 1, 2009.
Why GAO Did This Study: The Departments of Defense (DOD) and State (State) and the U.S. Agency for International Development (USAID) have relied extensively on contractors to support troops and civilian personnel and carry out reconstruction efforts in Iraq and Afghanistan. While recognizing the benefits of using contactors, GAO and others have noted the risks and challenges associated with relying on contractors.
Highlights
TROUBLED ASSET RELIEF
PROGRAM March 2009 Status of Efforts to Address Transparency and
Accountability Issues, GAO Report GAO-09-504, March, 2009.
Why GAO Did This Study: GAO’s third report on the
Troubled Asset Relief Program (TARP) follows up on recommendations from
the January 28, 2009, report (GAO-09-296). It also reviews (1) the
nature and purpose of activities that had been initiated under TARP as
of March 27, 2009; (2) the Department of Treasury’s Office of
Financial Stability’s (OFS) hiring efforts, use of contractors,
and progress in developing an internal control system; and (3) TARP
performance indicators. For this work, GAO reviewed signed agreements
and other relevant documentation and met with officials from OFS,
contractors, and federal agencies.
Highlights
[The report includes information on the use of contractors to support TARP administration and operations (see pages 35-46) that may be of interest to PubKLaw readers]
HUBZone Program: Fraud and Abuse Identified in Four Metropolitan Areas. GAO-09-440, March 25, 2009.
What GAO Found:
GAO found that fraud and abuse in the HUBZone program extends beyond the Washington, D.C., area. GAO identified 19 firms in Texas, Alabama, and California participating in the HUBZone program that clearly do not meet program requirements (i.e., principal office location or percentage of employees in HUBZone and subcontracting limitations). For example, one Alabama firm listed its principal office as “Suite 19,” but when GAO investigators performed a site visit they found the office was in fact trailer 19 in a residential trailer park. The individual living in the trailer had no relationship to the HUBZone firm. In fiscal years 2006 and 2007, federal agencies obligated nearly $30 million to these 19 firms for performance as the prime contractor on HUBZone contracts and a total of $187 million on all federal contracts.
Highlights
Ensuring Responsible Spending of Recovery Act Funds, Presidential Memorandum, March 20, 2009, 74 Fed. Reg. 12531, March 25, 2009
Defense Acquisitions: DOD Must Prioritize Its Weapon System Acquisitions and Balance Them with Available Resources, by Michael J. Sullivan, director, acquisition and sourcing management, before the House Committee on the Budget. GAO-09-501T, March 18.
Excerpt:
This testimony describes the systemic problems that have contributed to poor cost and schedule outcomes in DOD’s acquisition of major weapon systems; recent actions DOD has taken to address these problems; and steps that Congress and DOD need to take to improve the future performance of DOD’s major weapon programs. The testimony is drawn from GAO’s body of work on DOD’s acquisition, requirements, and funding processes.
Highlights
Joint
Strike Fighter: Accelerating Procurement before Completing Development
Increases the Government's Financial Risk, GAO-09-303, March 12,
2009.
What GAO Recommends GAO recommends that DOD (1) report
to the congressional defense committees on the risks and mitigation
strategy for use of cost reimbursement contracts for procurement and
plans to transition to fixed price contracts and (2) ensure that the
prime contractor performs periodic schedule risk analyses to improve
schedule and budget actions. DOD agreed to take these actions. Highlights
Defense
Acquisitions: Decisions Needed to Shape Army's Combat Systems for the
Future, GAO-09-288, March 12, 2009.
What GAO Recommends
GAO suggests Congress consider not approving full funds for the
program until several conditions are met, such as preparation of a
complete budget for any program emerging from the milestone review. GAO
also recommends the Secretary of Defense, among other things, ensure:
the program that emerges conforms to current defense acquisition policy,
such as technology maturity; any spin out approach is based on fully
tested results; and any incremental strategy involves free-standing,
justifiable increments. DOD concurred with GAOs recommendations.
Highlights
Presidential Memo on Government Contracting, March 04. 2009. President directs “the Director of the Office of Management and Budget (OMB), in collaboration with the Secretary of Defense, the Administrator of the National Aeronautics and Space Administration, the Administrator of General Services, the Director of the Office of Personnel Management, and the heads of such other agencies as the Director of OMB determines to be appropriate, and with the participation of appropriate management councils and program management officials, to develop and issue by July 1, 2009, Government-wide guidance to assist agencies in reviewing, and creating processes for ongoing review of, existing contracts in order to identify contracts that are wasteful, inefficient, or not otherwise likely to meet the agency's needs, and to formulate appropriate corrective action in a timely manner. Such corrective action may include modifying or canceling such contracts in a manner and to the extent consistent with applicable laws, regulations, and policy.”
Excluded Parties List System: Suspended and Debarred Businesses and Individuals Improperly Receive Federal Funds. GAO-09-174, February 25, 2009.
What GAO Recommends: GAO recommends that GSA take actions
to strengthen controls over EPLS[Excluded Parties List System], including issuing guidance to agency
officials on EPLS requirements, ensuring that EPLS requires the entrance
of contractor identification numbers, and strengthening search
functions. GSA agreed with these recommendations and outlined several
actions it has taken or plans to take. However, the actions described do
not achieve the intent of GAO’s recommendations. GSA simply restated its
current policies instead of agreeing to take steps to oversee the
completeness of EPLS and ensure that exclusions are properly enforced.
Highlights
Excluded Parties List System: Suspended and Debarred Businesses and Individuals Improperly Receive Federal Funds, by Testimony of Gregory D. Kutz, managing director, forensic audits and special investigations, before the House Committee on Oversight and Government Reform. GAO-09-419T, February 26, 2009.
Publication of Volume III of GAO's "Principles of Federal
Appropriations Law"
SUMMARY: The third edition of Volume III
of GAO's "Principles of Federal Appropriations Law" was recently
published by the Government Printing Office (GPO). Government
departments, agencies, and other federal organizations that normally
require more than one copy were given an opportunity to request them
through their agencies account representatives at a pre-publication
rate. This notice is intended for other parties who might be interested
in purchasing the book.
Buy American: Bad for Jobs, Worse for Reputation, Gary Clyde Hufbauer and Jeffrey J. Schott Gary, Peterson Institiue for International Economics, Number PB09-2, February 2009. Discusses the American Recovery and Reinvestment Act of 2009.
Executive Orders Affecting Contractors, January 30, 2009.
Contract Employees; Nondisplacement of Qualified Workers (EO 13495)
Contract Employees; Notification of Rights Under Federal Labor Laws (EO 13496)
Contracts; Economical and Efficient Administration (EO 13494)
OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION, Hard Lessons: The
Iraq Reconstruction Experience, January, 2009.
From RSS Feed Since
the March 2003 invasion, the Congress appropriated about $50 billion in
taxpayer dollars for Iraq's relief and reconstruction. This generous
provision funded a continuously evolving rebuilding program that sought,
among other things, to restore Iraq's essential services, establish new
security forces, create a free-market economy, and put the country on
the path to achieving an effective democracy. Some of the initiatives
succeeded but others did not. Hard Lessons, the first comprehensive
account of the Iraq reconstruction effort, reviews in detail the United
States' rebuilding program, shedding light on why certain programs
worked while others fell short of goals.
Executive Order 13488 of January 16, 2009, Granting Reciprocity on Excepted Service and Federal Contractor Employee Fitness and Reinvestigating Individuals in Positions of Public Trust, 74 Fed. Reg. 4111, January 22, 2009.
The Deputy Inspector General for Auditing, Department of Defense Inspector General, posted the following on 12/04/08.
D-2008-119 Construction Contracting Procedures Implemented by the Joint Contracting Command-Iraq/Afghanistan, September 29, 2008 (Project No. D2007-D000LQ-0261.000) with Errata memo
Small
Business Administration: Agency Should Assess Resources Devoted to
Contracting and Improve Several Processes in the 8(a) Program,
GAO-09-16, November 21, 2008.
What GAO Recommends: GAO recommends
actions that include SBA reassessing the resources allocated to achieve
program objectives; better ensuring that prospective 8(a) applicants are
aware of program requirements; and conducting regular surveillance
reviews for the 8(a) program. In responding to a draft of this report,
SBA agreed with these recommendations and outlined steps that it has
initiated or plans to take to address them. Highlights
Department of Homeland Security: A Strategic Approach Is Needed to Better Ensure the Acquisition Workforce Can Meet Mission Needs. GAO-09-30, November 19, 2008.
What GAO Found:
DHS has undertaken several initiatives, mostly focused on contract specialists, to begin addressing acquisition workforce challenges. Initiatives related to recruiting, hiring, and training have made progress. In January 2008, CPO implemented a contract specialist intern program, and 49 contract specialists were hired through this initiative as of September 2008. In addition, CPO developed DHS-specific training for program managers through a training program begun in spring 2008. However, most initiatives related to defining and identifying the acquisition workforce and assessing workforce needs have not yet produced results and in some cases are progressing more slowly than originally projected. CPO is considering expanding some of its recruiting and hiring initiatives to address identified shortages in acquisition-related positions other than contract specialists, but has not determined how it will implement such an expansion. Moreover, DHS generally lacks documented performance goals and implementation stepssuch as actions to be taken, needed resources, and milestonesfor its current initiatives. Without developing this foundation, DHS will not be in a position to effectively monitor and evaluate implementation of these initiatives.
Highlights
USAID Acquisition and Assistance: Actions Needed to Develop and Implement a Strategic Workforce Plan. GAO-08-1059, September 26, 2008.
What GAO Found(Partial)
USAID lacks the capacity to develop and implement a strategic A&A workforce plan because it is missing two key elements: (1) sufficiently reliable and up-to-date data on its overseas A&A staff levels and (2) comprehensive information on the competencies of its overseas A&A staff. Data on the number of overseas A&A specialists collected by two USAID officesthe Office of Acquisition and Assistance (OAA) and the Office of Human Resources (OHR)are unreliable or out of date. GAO found significant discrepancies between these offices data sets, and officials acknowledged that their A&A staff level data are neither reliable nor up-to-date. In addition, USAID has not collected comprehensive competency information on its overseas A&A specialists. GAOs model of strategic human capital planning notes the importance of these data in developing a strategic A&A workforce plan that could enable the agency to better match staff levels to changing workloads. At the missions GAO visited, GAO found that the numbers and competencies of A&A staff did not match A&A workloads. The number of A&A staff with the necessary competencies was less than adequate at some missions, while at others it was more than adequate, according to agency officials. For example, officials at the mission in Mali said they have delayed time-sensitive projects because key A&A staff were not available when needed to approve contracts, while officials at the mission in Indonesia said the current number of A&A staff may be more than adequate. Most of the A&A survey respondents overseas also reported difficulty in altering staffing patterns to meet A&A workload demands. Although USAID has made some efforts to address its A&A workforce issues, these efforts do not constitute a strategic A&A workforce plan that takes into account the entire A&A workforce. Without accurate and reliable A&A staff data, USAID does not have adequate information to address current workload imbalances
Highlights
Military Operations: DOD Needs to Address Contract Oversight and Quality Assurance Issues for Contracts Used to Support Contingency Operations. GAO-08-1087, September 26, 2008.
What GAO Found(Partial)
Costs for six of the seven contracts GAO reviewed increased from an initial estimate of $783 million to about $3.8 billion, and one consistent and primary factor driving the growth was increased requirements associated with continued military operations in Iraq and Afghanistan. For example, the Army awarded a $218.2 million task order for equipment maintenance and supply services in Kuwait in October 2004. Since then, approximately $154 million of additional work was added to this task order for vehicle refurbishment, tire assembly and repair, and resetting of prepositioned equipment. Other factors that increased individual contract costs include the use of short-term contract extensions and the governments inability to provide contractually required equipment and services. For example, in three of the contracts GAO reviewed, short-term contract extensions (3 to 6 months) increased costs because the contractor felt it was too risky to obtain long-term leases for vehicles and housing. The actual cost of one contract we reviewed did not exceed the estimated cost for reasons such as lower than projected labor rates.
Highlights
Defense Acquisitions: Sound Business Case Needed to
Implement Missile Defense Agency's Targets Program. GAO-08-1113,
September 26, 2008.
What GAO Recommends: GAO recommends that
the Secretary of Defense establish a revised business case for providing
targets for a robust flight test program and use that as a guide to
align the program’s plans and resources. DOD partially concurred with
these two recommendations, but did not concur with a third
recommendation that it report its targets acquisition strategy, business
case, and baselines to Congress, preferring to rely on briefings to
Congressional staff and information in the annual budget submission. GAO
is therefore suggesting that Congress consider requiring DOD to report
this information to the Congressional Defense Committees.
Highlights
2010 Census: Census Bureau's Decision to Continue with Handheld Computers for Address Canvassing Makes Planning and Testing Critical, GAO-08-936, July 31, 2008.
Why GAO Did This Study
The U.S. Census Bureau (Bureau) had planned to rely heavily on automation in conducting the 2010 Census, including using handheld computers (HHC) to verify addresses. Citing concerns about escalating costs, in March 2008 the Secretary of Commerce announced a redesign of the key automation effort. GAO was asked to (1) analyze Bureau and contractor data showing how HHCs operated and their impact on operations, and (2) examine implications the redesign may have on plans for address canvassing in the 2010 Census.
GAO reviewed Bureau and contractor data, evaluations, and other documents on HHC performance and staff productivity; interviewed Bureau and contractor officials; and visited the two dress rehearsal sites to observe and document the use of the HHCs in the field.
Highlights
Multiple Award Schedule Advisory Panel; Notification of
Public Advisory Panel Meetings, 73 Fed. Reg. 50329, August 26,
2008.
SUMMARY: The U.S. General Services Administration
(GSA) Multiple Award Schedule Advisory Panel (MAS Panel), a Federal
Advisory Committee, will hold public meetings on the following dates:
Friday, September 19, 2008; Monday, September 22, 2008; Monday, October
6, 2008; and Monday, October 27, 2008. GSA utilizes the MAS program to
establish long-term Governmentwide contracts with responsible firms to
provide Federal, State, and local government customers with access to a
wide variety of commercial supplies (products) and services.
Small
Business Innovation Research Program Policy Directive, Notice of
proposed changes, 73 Fed. Reg. 48004, August 15, 2008.
SUMMARY: The U.S. Small Business Administration (SBA)
proposes to adjust the Small Business Innovation Research (SBIR) Program
award threshold amounts to offset the effect of inflation that has
occurred since the amounts were last set in 1992. Current threshold
amounts were set by Congress in 1992 at $100,000 for Phase I awards and
$750,000 for Phase II awards. SBA is authorized by statute to adjust the
award amounts once every 5 years to reflect economic adjustments and
programmatic considerations. SBA proposes to increase the award amounts
to $150,000 and $1,000,000, respectively, to account for increases in
the costs of performing research and development.
Dates: Comments must
be received on or before September 15, 2008. SBA intends to make these
comments available to the public.
Defense Acquisitions: Department of Defense Needs Framework for Balancing Investments in Tactical Radios. GAO-08-877, August 15, 2008.
Why GAO Did This Study; The Department of Defense (DOD) has
spent an estimated $12 billion on the development and production of
tactical radios over the last 5 yearsabout as much as was spent
producing Virginia Class submarines ($10.8 billion) in the same period.
Survivability and lethality in warfare are increasingly dependent on
superior information and communication capabilities. DOD is counting on
the Joint Tactical Radio System (JTRS) to deliver the breakthroughs in
this area. At the same time as it is developing JTRS, DOD wants to
ensure that current forces are equipped with sufficient legacy radios.
To address Subcommittee concerns regarding DOD's approach to meeting
current and future radio needs, GAO examined this subject. In response,
this report addresses (1) how planned investments in key tactical radio
systems changed over the last 5 years, (2) why these changes occurred,
and (3) the challenges ahead.
Highlights
GOVERNMENT PREVAILS IN CONFLICT-OF-INTEREST CASE
AGAINST SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NRC Press Release, August 08, 2008.
On July 31, a federal jury sitting in the District of Columbia concluded a four-week trial by finding Science Applications International Corporation (SAIC) liable for violating the False Claims Act and breaching a contract with the Nuclear Regulatory Commission. The jury found that SAIC knowingly submitted 60 false claims for payment and knowingly made 17 false statements to get claims paid on two NRC contracts in the 1990s.
Defense Acquisitions: Cost to Deliver Zumwalt-Class Destroyers Likely to Exceed Budget. GAO-08-804, July 31, 2008.
What GAO Found: From the outset, DDG 1000 has faced a steep challenge framed by technical sophistication, demanding mission requirements, and a somewhat unforgiving schedule. The Navy conceived a thoughtful strategy to meet these demands and has had success with several technologies and its design approach. Yet, the program did not proceed as planned and the Navy recently realigned the construction schedule for the first two ships to provide more time to finish key systems and software. Still, the Navy will produce—and in some cases install—key systems on the ship before fully demonstrating and testing them. Software development has proven challenging; the Navy certified the most recent software release before it met about half of its requirements. At this point—the first year of a 6-year construction schedule for the lead ships—the Navy may have exhausted its options for solving future problems without adding money and time.
Highlights
Testimony
OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION, July 30, 2008. Quarterly Report and Semiannual Report to Congress
This 18th Quarterly Report to the Congress provides a new look at the relief and reconstruction effort in Iraq, presenting a province-by-province review of progress on reconstruction and capacity-building in four key areas of concern-economics, essential services, governance, and security. This new review catalogues a series of informative snapshots on the achievements and challenges affecting each of Iraq's 18 provinces.
Total Iraqi funds made available for reconstruction since 2003 have now reached the $50 billion mark, roughly equaling the total amount of U.S. funds appropriated to date to support Iraq's relief and reconstruction. The picture of provincial progress in this Report further amplifies how that money has been spent, updating the markedly mixed story that SIGIR has unfolded over the past four and a half years through nearly 250 audits and inspections.
DOD Business Systems Modernization: Key Marine Corps System Acquisition Needs to Be Better Justified, Defined, and Managed. GAO-08-822, July 28, 2008.
What GAO Found: DOD has not effectively implemented key IT management controls provided for in DOD and related acquisition guidance on this program. If implemented effectively, these and other IT management disciplines increase the likelihood that a given system investment will produce the right solution to fill a mission need and that this system solution will be acquired and deployed in a manner that maximizes the chances of delivering promised system capabilities and benefits on time and within budget. Neither of these outcomes is being fully realized on this program, as evidenced by the fact that its first increment has already slipped more than 3 years and is expected to cost about $193 million more than envisioned. These slippages and cost overruns can be attributed in part to the management control weaknesses discussed in this report and summarized below. Moreover, additional slippages and overruns are likely if these and other IT management weaknesses are not addressed.
Highlights
OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION OUTTCOME, COST,, AND OVERSIGHT OF THE SECURITY AND JUSTICE CONTRACT WITH PARSONS DELAWARE, INC, SIGR-08-019, July 28, 2008.
DCAA Audits: Allegations That Certain Audits at Three Locations Did Not Meet Professional Standards Were Substantiated, GAO-08-857, July 22, 2008
Summary: GAO substantiated the allegations. Although DCAA policy states that its audits are performed according to GAGAS, GAO found numerous examples where DCAA failed to comply with GAGAS. For example, contractor officials and the DOD contracting community improperly influenced the audit scope, conclusions, and opinions of three auditsa serious independence issue. At two DCAA locations, GAO found evidence that (1) working papers did not support reported opinions, (2) DCAA supervisors dropped findings and changed audit opinions without adequate evidence for their changes, and
(3) sufficient audit work was not performed to support audit opinions and conclusions. GAO also substantiated allegations of inadequate supervision of certain audits at a third DCAA location. The table below contains selected details about three cases GAO investigated.Highlights
MEMORANDUM FOR CHIEF ACQUISITION
OFFICERS SENIOR PROCUREMENT EXECUTIVES AGENCY COMPETITION ADVOCATES
FROM: Paul A. Denett Administrator, July 18, 2008.
SUBJECT:
Effective Practices for Enhancing Competition
Last spring, I
asked agencies to reinvigorate the role of the competition advocate and
maximize the meaningful use of competition. Competition is the
cornerstone of our acquisition system and is a critical tool for
achieving the best return on investment possible for our taxpayers. The
percentage of dollars competed in fiscal year (FY) 2007 is holding
steady with recent government-wide activity at 64 percent. I commend you
for the steps you are taking to strengthen competition practices in
Federal acquisition. We need to do more to promote the appropriate use
of tools and effective practices to improve and increase the use of
competition.
Small Business Administration: Additional Actions Are Needed to Certify and Monitor HUBZone Businesses and Assess Program Results. GAO-08-643, June 17, 2008.
What GAO Found:
SBA relies on federal law to identify qualified HUBZone areas based on provisions such as median income in census tracts, but the map it uses to publicize HUBZone areas is inaccurate, and the economic characteristics of designated areas vary widely. To help firms determine if they are located in a HUBZone area, SBA publishes a map on its Web site. However, the map contains areas that are not eligible for the program and excludes some eligible areas. As a result, ineligible small businesses have been able to participate in the program, and eligible businesses have not been able to participate. Revisions to the statutory definition of HUBZone areas (such as allowing continued inclusion of areas that ceased to be qualified) have nearly doubled the number of areas and created areas that are less economically distressed than areas designated under the original criteria. Such an expansion could diffuse the benefits to be derived from steering businesses to economically distressed areas.
Highlights
Broadcasting to Cuba: Weaknesses in Contracting Practices Reduced Visibility into Selected Award Decisions. GAO-08-764, July 11, 2008.
What GAO Found: IBB’s approach for awarding the Radio Mambi and TV Azteca contracts did not reflect sound business practices. According to officials from IBB and the Broadcasting Board of Governors—IBB’s and OCB’s parent organization—the confluence of several interrelated events—ongoing interagency deliberations, the issuance of a July 2006 report by a Cabinet-level commission, and concerns about the health of Fidel Castro—required them to quickly obtain additional broadcasting services to Cuba. Competition laws and regulations provide agencies considerable flexibility to use noncompetitive procedures, if adequately justified, to meet their needs. In certain respects, however, IBB did not fully document in its contract files key information or assumptions underlying its decisions to not seek competitive offers, limit the number of potential providers it considered, or the basis used to negotiate the final prices for the services provided. Additionally, IBB did not actively involve its contracting office until just prior to contract award, though agency regulations and our prior work identify that timely involvement by stakeholders helps promote successful acquisition outcomes. Finally, though it partly justified its awards based on urgency, IBB exercised multiple options on the two contracts to extend their period of performance into 2008. Only recently has it taken steps to identify additional providers.
Highlights
Air Force Procurement: Aerial Refueling Tanker Protest, by Daniel I. Gordon, deputy general counsel, before the Subcommittee on Air and Land Forces, House Committee on Armed Services. GAO-08-991T, July 10, 2008.
GAO’s Findings Review of the extensive record, including a hearing, led GAO to conclude that the Air Force had made a number of significant errors that could have affected the outcome of what was a close competition between Boeing and Northrop Grumman. The errors included not assessing the relative merits of the proposals in accordance with the evaluation rules and criteria identified in the solicitation, not having documentation to support certain aspects of the evaluation, conducting unequal and misleading discussions with Boeing, and having errors or unsupported conclusions in the cost evaluation. Accordingly, GAO sustained Boeings protest.
Highlights
Defense Acquisitions: A Knowledge-Based Funding Approach Could Improve Major Weapon System Program Outcomes. GAO-08-619, July 2, 2008.
What GAO Found:
DOD often does not commit full funding to develop its major weapon systems when they are initiated, despite the department’s policy to do so. For a majority of the weapon system programs GAO reviewed, costs have exceeded the funding levels initially planned for and reflected in the Future Years Defense Program (FYDP)DOD’s investment strategy. To compensate for these shortfalls, DOD makes unplanned and inefficient funding adjustments, like moving money from one program to another, deferring costs into the future, or reducing procurement quantities.
Highlights
ILLINOIS VETERANS AFFAIRS OFFICIAL PLEADS GUILTY
TO CONSPIRACY AND ACCEPTING ILLEGAL GRATUITIES WASHINGTON, June 30,
2008.
The director of the Hines, Ill., Department of Veterans
Affairs (VA) Consolidated Mail Outpatient Pharmacy (CMOP) has agreed to
plead guilty to participating in a conspiracy that allowed a subordinate
to make contracting decisions regarding a company owned by the
subordinates spouse, the Department of Justice announced today. The
director also has
agreed to plead guilty to accepting illegal gratuities.
June 06, 2008. MEMORANDUM FOR CHIEF ACQUISITION OFFICERS
SENIOR PROCUREMENT EXECUTIVES
FROM: Paul A. Denett
Administrator
SUBJECT: Improving the Management and Use of Interagency Acquisitions
Interagency acquisitions offer important benefits to federal agencies, including economies and efficiencies and the ability to leverage resources. The attached guidance is intended to help agencies achieve the greatest value possible from interagency acquisitions.
Multiple
Award Schedule Advisory Panel; Notification of Public Advisory Panel
Meetings, Notice, 73 Fed. Reg. 31688, June 02, 2008.
SUMMARY: The U.S. General Services Administration (GSA)
Multiple Award Schedule Advisory Panel (MAS Panel), a Federal Advisory
Committee, will hold public meetings on the following dates: Monday,
June 16, 2008; Tuesday, June 17 2008; Monday, July 21, 2008; and Monday,
August 18, 2008. GSA utilizes the Schedules program to establish
long-term Governmentwide contracts with responsible firms to provide
Federal, State, and local government customers with access to a wide
variety of supplies (products) and services.
DOT IG Audit
Report:Title: Interim Report: Award-Fee Criteria for the National Airway
Systems Contract, May 28, 2008.
Summary: On May 28,
2008, we issued an interim report regarding FAAs National Airway
Systems Contract as part of our ongoing audit of the Use of
CostPlusAwardFee (CPAF) contracts within the Department. We found
that contracting officials did not justify the costeffectiveness of
selecting a CPAFtype contract by evaluating administrative costs versus
expected benefits to the government. Without this evaluation, the
Aeronautical Center had no assurance that a CPAFtype contract was
appropriate. Additionally, the performance evaluation plan did not
include measurable criteria needed to adequately evaluate contractor
performance.
Further, a portion of the awardfee criteria
required the contractor to merely comply with basic contractual
requirements. The performance evaluation plan allowed awardfee payments
up to 72.5 percent of the awardfee pool for average or below results.
The problems cited in this report existed, in part, because Aeronautical
Center personnel did not have detailed guidance on how to structure
awardfee plans to incentivize contractors. FAA officials agreed to
select another contract type more suitable for obtaining engineering and
technical support, and revise Aeronautical Center guidance.
Air Force Air Combat Command Contracts, DOD IG
Report No. D-2008-094, May 20, 2008
Results. Air Combat Command
and 99th Contracting Squadron officials violated the Federal Acquisition
Regulation for seven of eight contracts reviewed. In two contracts,
contracting officers awarded contracts on a sole-source basis without
seeking competition. In six contracts,1 a price reasonableness
determination was not documented at the time of award. In an additional
contract, the contracting officer awarded a contract on a best value
basis without adequate documentation to support the best value decision.
Also, on one of the contracts, the contracting officer did not include a
standard Federal Acquisition Regulation clause limiting subcontracting
when awarding a contract to an Alaska Native Corporation, thus allowing
the contractor to subcontract 100 percent of the work. See the table on
page 5 for a summary of the conditions found. As a result, Air Combat
Command and 99th Contracting Squadron officials allowed contracts to be
directed to specific contractors without obtaining the benefits of
competition.
MEMORANDUM FOR CHIEF ACQUISITION OFFICERS, May 21, 2008.
FROM: Paul A. Denett
Administrator
SUBJECT: Conducting Acquisition Assessments under OMB Circular A-123
The purpose of this memorandum is to provide guidelines for conducting entity level internal control reviews of the acquisition function as required by Office of Management and Budget (OMB) Circular A-123. OMB Circular A-123, Managements Responsibility for Internal Control, requires agency managers to continuously monitor and improve the effectiveness of internal control associated with their programs. The guidelines include a template to provide a standard approach for conducting the entity level acquisition reviews required under the Circular. See section I of the Circular and sections III.B and C of Appendix A. The guidelines also require agencies to integrate their assessment efforts with existing agency internal control processes and practices to ensure the coordinated establishment, assessment and correction of internal controls for acquisition.
Defense Contracting: Post-Government Employment of Former DOD Officials Needs Greater Transparency. GAO-08-485, May 21, 2008.
Why GAO Did This Study
Department of Defense (DOD) officials who serve in senior and acquisition positions and then leave for jobs with defense contractors are subject to the restrictions of post-government employment laws, in order to protect against conflicts of interest. Congress required GAO to report on employment of such officials by contractors who received more than $500 million in DODs 2005 contract awards. In response, this report (1) provides information on how many former DOD employees worked for contractors in 2006 and estimates how many worked on contracts that were related to their former agencies or to their direct responsibilities and (2) identifies the practices used to monitor restrictions and information challenges in monitoring post-DOD employment. To do this work, GAO matched data from DOD for all employees who left DOD over a 6 year period with data from the Internal Revenue Service (IRS) and from 52 contractors; conducted surveys; and interviewed DOD and contractor officials.
Highlights
DEPARTMENT OF HOMELAND SECURITY
Better Planning and Assessment Needed to Improve Outcomes for Complex Service Acquisitions, GAO-08-263, April 22, 2008.
Abstract: The Department of Homeland Security (DHS) has relied on service acquisitions to meet its expansive mission. In fiscal year 2006, DHS spent $12.7 billion to procure services. To improve service acquisition outcomes, federal procurement law establishes a preference for a performance-based approach, which focuses on developing measurable outcomes rather than prescribing how contractors should perform services. GAO was asked to (1) evaluate the implementation of a performance-based approach in the context of service acquisitions for major, complex investments, and (2) identify management challenges that may affect DHS's successful acquisitions for major investments, including those using a performance-based approach. GAO reviewed judgmentally selected contracts for eight major investments at three DHS components totaling $1.53 billion in fiscal years 2005 and 2006; prior GAO and DHS Inspector General reviews; management documents and plans; and related data, including 138 additional contracts for basic services.
All service contracts for the eight major, complex investments GAO reviewed had outcome-oriented requirements; however, four of these contracts did not have well-defined requirements, a complete set of measurable performance standards, or both. These service contracts experienced cost overruns, schedule delays, or did not otherwise meet performance expectations. In contrast, service contracts for the other four investments GAO reviewed had well-defined requirements linked to measurable performance standards. Contractors had begun work on three of these four contracts and performed within budget meeting the standards. This finding is consistent with prior GAO work on service acquisitions, which has highlighted the criticality of sound acquisition planning to develop well-defined requirements and measurable performance standards to achieving desired outcomes. In the four cases that had negative outcomes, program officials identified the contractor performance weaknesses through quality assurance surveillance and took corrective actions. Prior GAO work has found that if acquisitions, including those that are performance-based, are not appropriately planned, structured, and monitored, there is an increased risk that the government may receive products or services that are over budget, delivered late, and of unacceptable quality. In managing its service acquisitions, including those that are performance based, DHS has faced workforce and oversight challenges. Prior GAO work has highlighted the importance of having the right people with the right skills to achieve successful acquisition outcomes. Contracts for two major investments with negative cost and schedule outcomes did not have the staff needed to adequately plan and execute the contracts. Further, while representatives for several of the contracts GAO reviewed indicated that contracting and program staff worked well together, some senior acquisition representatives at the component level indicated that a lack of collaboration between these key stakeholders has been a challenge when developing and managing complex service acquisitions. In terms of oversight, component contracting and program officials said they used a performance-based approach to the maximum extent practicable; however, DHS does not have reliable data to facilitate required reporting, informed decisions, and analyzing acquisition outcomes. GAO's review also found that about half of an additional 138 contracts for basic services identified as performance-based did not have any of the elements intended to foster good outcomes: a performance work statement, measurable performance standards, and a quality assurance surveillance plan. DHS's Chief Procurement Officer (CPO)--who is responsible for departmentwide oversight of acquisitions--has several efforts under way to address some of these workforce and oversight issues. One initiative is an acquisition oversight program that is intended to assess (1) compliance with federal acquisition guidance, (2) contract administration, and (3) business judgment. However, this oversight program has not yet included an evaluation of the outcomes of contracting methods such as performance-based service acquisition. Highlights and Testimony, May 05, 2008.
MEMORANDUM FOR CHIEF ACQUISITION OFFICERS,
SENIOR PROCUREMENT EXECUTIVES,
AND SMALL AGENCY COUNCIL MEMBERS
FROM: Paul A. Denett
Administrator, May 09,2008.
SUBJECT: Improving Acquisition Data Quality FY 2008 FPDS Data
The passage of the Federal Funding Accountability and Transparency Act of 2006 and subsequent activation of the USAspending.gov website have increased public access and interest in Federal acquisition and other Federal spending data. It is therefore more important than ever that we continue to pay careful attention to the accuracy of these data. I am counting on you to assure that your data are accurate.
Interagency Contracting: Need for Improved Information and Policy Implementation at the Department of State. GAO-08-578, May 8, 2008.
What GAO Found: State officials have limited insight into the extent to which the department has
used both methods of interagency contractingdirect by placing their own
orders on another agencys contract and assisted by obtaining contract
support services from another agency. State officials cannot rely on the
federal governments primary data system for tracking procurements to
readily identify instances when State has used interagency contracts. Further,
States central procurement and accounting systems do not reliably and
comprehensively identify when interagency contracts have been used. While
State officials told GAO the most reliable way to identify interagency contract
actions would be to request data on these actions from bureaus and overseas
posts, several bureaus and posts had difficulty responding to such a request.
State reported to GAO over $800 million in interagency contract actions in
fiscal year 2006, but these data were incomplete. For example, State did not
report $144 million in assisted contracting performed on its behalf by the
Department of Defense. GAO has previously reported that the lack of reliable
information on interagency contracts inhibits agencies from making sound
contracting decisions and engaging in good management practices.
Highlights
March 26, 2008 Memorandum from the Air Force Secretary concerning small business as well as the April 30, 2008 response letter from 13 trade groups.
SIGIR-April 30, 2008 Quarterly Report to Congress
Intro: Since April 2003, the United States Congress has appropriated more than $46 billion for the relief and reconstruction of Iraq. This Quarterly Report provides a comprehensive update on how that money has been spent, with information on the top five projects in each construction sector, the top contractors by income, an overview of reconstruction management, and SIGIR's new audits and inspections. In addition, with Iraq's oil revenue income on course to hit $70 billion for 2008 twice what was expected Iraq is in a position to take on more responsibility for its own reconstruction.
The Deputy Inspector General for Auditing, Department of Defense D-2008-079 Management of Incremental Funds on the Air Force Research, Development, Test and Evaluation Contracts, April 8, 2008 (1.6MB) (Project No. D2005-D000FD-0208.000)
Defense Acquisitions: 2009 Review of Future Combat System Is Critical to Program's Direction, by Paul L. Frances, director, acquisition and sourcing management, before the Subcommittee on Air and Land Forces, House Committee on Armed Services. GAO-08-638T, April 10, 2008.
What GAO Found: Today, the FCS program is about halfway through its development phase, yet it is, in many respects, a program closer to the beginning of development. This portends additional cost increases and delays as FCS begins what is traditionally the most expensive and problematic phase of development. In the key areas of defining and developing FCS capabilities, requirements definition is still fluid, critical technologies are immature, software development is in its early stages, the information network is still years from being demonstrated, and complementary programs are at risk for not meeting the FCS schedule. It is not yet clear if or when the information network that is at the heart of the FCS concept can be developed, built, and demonstrated. Yet, the time frame for completing FCS development is ambitious; even if all goes as planned, the program will not test production-representative prototypes or fully demonstrate the system of systems until after low rate production begins
Highlights
Governmentwide Purchase Cards: Actions Needed to Strengthen Internal Controls to Reduce Fraudulent, Improper, and Abusive Purchases
GAO-08-333, March 14, 2008.
Summary Over the past several years, GAO has issued numerous reports and testimonies on internal control breakdowns in certain individual agencies' purchase card programs. In light of these findings, GAO was asked to analyze purchase card transactions governmentwide to (1) determine whether internal control weaknesses existed in the government purchase card program and (2) if so, identify examples of fraudulent, improper, and abusive activity. GAO used statistical sampling to systematically test internal controls and data mining procedures to identify fraudulent, improper, and abusive activity. GAO's work was not designed to determine the overall extent of fraudulent, improper, or abusive transactions.
Internal control weaknesses in agency purchase card programs exposed the federal government to fraud, waste, abuse, and loss of assets. When testing internal controls, GAO asked agencies to provide documentation on selected transactions to prove that the purchase of goods or services had been properly authorized and that when the good or service was delivered, an individual other than the cardholder received and signed for it. Using a statistical sample of purchase card transactions from July 1, 2005, through June 30, 2006, GAO estimated that nearly 41 percent of the transactions failed to meet either of these basic internal control standards. Using a second sample of transactions over $2,500, GAO found a similar failure rate--agencies could not demonstrate that 48 percent of these large purchases met the standard of proper authorization, independent receipt and acceptance, or both. Breakdowns in internal controls, including authorization and independent receipt and acceptance, resulted in numerous examples of fraudulent, improper, and abusive purchase card use. These examples included instances where cardholders used purchase cards to subscribe to Internet dating services, buy video iPods for personal use, and pay for lavish dinners that included top-shelf liquor. GAO identified some of the case studies, including one case where a cardholder used the purchase card program to embezzle over $642,000 over a period of 6 years from the Department of Agriculture's Forest Service firefighting fund. This cardholder was sentenced to 21 months in prison and ordered to pay full restitution. In addition, agencies were unable to locate 458 items of 1,058 total accountable and pilferable items totaling over $2.7 million that GAO selected for testing. These missing items, which GAO considered to be lost or stolen, totaled over $1.8 million and included computer servers, laptop computers, iPods, and digital cameras. For example, the Department of the Army could not adequately account for 256 items making up 16 server configurations, each of which cost nearly $100,000.
[See April 09,2008 Washington Post front page article-jaw]
Highlights
Defense Acquisitions: DOD's Increased Reliance on Service Contractors Exacerbates Long-standing Challenges, by David M. Walker, then comptroller general of the United States, before the Subcommittee on Defense, House Committee on Appropriations. GAO-08-621T, January 23, 2008.
What GAO Found(in part): DOD has increasingly turned to contractors to fill roles previously held by government employees and to perform many functions that closely support inherently governmental functions, such as contracting support, intelligence analysis, program management, and engineering and technical support for program offices. This trend has raised concerns about what the proper balance is between public and private employees in performing agency missions and the potential risk of contractors influencing the governments control over and accountability for decisions that may be based, in part, on contractor work. Further, when the decision is made to use contractors in roles closely supporting inherently governmental functions, additional risks are present. Contractors are not subject to the same ethics rules as government even when doing the same job, and the government risks entering into an improper personal services contract if an employer/employee relationship exists between the government and the contractor employee.
Highlights
Federal Contracting: Congressional Action Needed to Address Long-standing Problems with Reporting of Advisory and Assistance Services. GAO-08-319, March 31, 2008.
What GAO Found: Agencies reported A&AS obligations are inaccurate to the point of being meaningless and are not used for management purposes. GAO found a range of factors that contribute to significant inaccuracies in these data.
Almost 20 percent of the 334 contract actions GAO reviewed were erroneously identified as A&AS, including services such as fitness center maintenance and telecommunications cabling installation. Agency officials frequently cited the broad nature of the A&AS definition as a problem. Agencies GAO reviewed generally encountered challenges in tying reported A&AS obligations to their corresponding contracts because of the lack of integration of procurement and budget data systems. Agency and OMB officials unanimously told GAO they do not use reported A&AS obligations for management or other purposes. Acquisition officials said they oversee their A&AS contracts, as they do their other professional services contracts, with established contract management procedures. Reflecting the lack of a clear distinction between A&AS and general professional services contracts, DOD retracted its A&AS directive and replaced it with general service contracting guidance in 2004. Even as far back as 1996, a code to specifically designate A&AS contracts was removed from the Federal Procurement Data System, the governments procurement information system.
Highlights
Defense Acquisitions:
Assessments of Selected Weapon Programs GAO-08-467SP, March 31, 2008
,
What GAO Found: Of the 72 programs GAO assessed this
year, none of them had proceeded through system development meeting the
best practices standards for mature technologies, stable design, or
mature production processes by critical junctures of the program, each
of which are essential for achieving planned cost, schedule, and
performance outcomes. The absence of wide-spread adoption of
knowledge-based acquisition processes by DOD continues to be a major
contributor to this lack of maturity. Aside from these knowledge-based
issues, GAO this year gathered data on four additional factors that have
the potential to influence DODs ability to manage programs and improve
outcomesperformance requirements changes, program manager tenure,
reliance on nongovernmental personnel to help perform program office
roles, and software management. GAO found that 63 percent of the
programs had changed requirements once system development began, and
also experienced significant program cost increases. Average tenure to
date for program managers has been less than half of that called for by
DOD policy. About 48 percent of DOD program office staff for programs
GAO collected data from is composed of personnel outside of the
government. Finally, roughly half the programs that provided GAO data
experienced more than a 25 percent increase in the expected lines of
software code since starting their respective system development
programs.
Highlights
Defense Contracting: Army Case Study Delineates Concerns with Use of Contractors as Contract Specialists. GAO-08-360, March 26, 2008.
What GAO Recommends: GAO recommends that the Secretary of Defense issue guidance regarding personal services contracts and that the Secretary of the Army direct ACA to work with CCE to develop a plan that addresses the appropriate mix of government and contractors, implement a training program, and ensure that contractors identify themselves as such. GAO also recommends that GSA implement controls to prevent contractors from improperly advertising their services.
Highlights
OFPP-Determination of Executive
Compensation Benchmark Amount, Notice, 73 Fed. Reg. 15779, March 25,
2008.
SUMMARY: The Office of Management and Budget (OMB)
is publishing the attached memorandum to the heads of executive
departments and agencies concerning the determination of the maximum
benchmark compensation amount that will be allowable under government
contracts during contractors fiscal year 2008—$612,196. This
determination is required under Section 39 of the Office of Federal
Procurement Policy (OFPP) Act (41 U.S.C. 435), as amended. The benchmark
compensation amount applies equally to both defense and civilian
procurement agencies.
Defense Acquisitions: Termination Costs Are Generally Not a Compelling Reason to Continue Programs or Contracts That Otherwise Warrant Ending. GAO-08-379, March 14, 2008.
What GAO Recommends
GAO recommends that DOD review, and as needed amend, guidance on terminations across the military services and DOD agencies to ensure that termination guidance identifies the conditions under which it is appropriate to end programs or contracts, and provides knowledge needed to use terminations as an investment portfolio tool. DOD agreed
Highlights
MEMORANDUM FOR SECRETARIES OF THE
MILITARY DEPARTMENTS, CHAIRMAN OF THE JOINT CHIEFS OF STAFF, UNDER
SECRETARIES OF DEFENSE, COMMANDERS OF THE COMBATANT COMMANDS, From Robert M. Gates, Secretary of Defense, March
10, 2008.
SUBJECT: UCMJ Jurisdiction Over DoD Civilian Employees,
DoD Contractor Personnel, and Other Persons Serving With or Accompanying
the Armed Forces Overseas During Declared War and in Contingency
Operations
Defense Contracting: Additional Personal Conflict of Interest Safeguards Needed for Certain DOD Contractor Employees. GAO-08-169, March 07, 2008.
Why GAO Did This Study: Many defense contractor employees work side-by-side with federal employees in Department of Defense (DOD) facilities performing substantially the same tasks affecting billions in DOD spending. Given concerns with protecting the integrity of DOD operations, GAO was asked to assess (1) how many contractor employees work in DOD offices and what type of mission-critical contracted services they perform, (2) what safeguards there are to prevent personal conflicts of interest for contractor employees when performing DOD’s tasks, and (3) whether government and defense contractor officials believe additional safeguards are necessary.
Highlights
Defense Acquisitions: 2009 Is a Critical Juncture for the Army's Future Combat System. GAO-08-408, March 07, 2008.
Why GAO Did This Study: The Future Combat System (FCS) programwhich comprises 14 integrated weapon systems and an advanced information networkis the centerpiece of the Army’s effort to transition to a lighter, more agile, and more capable combat force. The substantial technical challenges, the Army’s acquisition strategy, and the cost of the program are among the reasons why the program is recognized as needing special oversight and review. Section 211 of the National Defense Authorization Act for Fiscal Year 2006 requires GAO to report annually on the FCS program. This report includes an examination of (1) how the definition, development, and demonstration of FCS capabilities are proceeding, particularly in light of the go/no-go decision scheduled for 2009; (2) the Army’s plans for making production commitments for FCS and any risks related to the completion of development; and (3) the estimated costs for developing and producing FCS.
Highlights
Defense Acquisitions: Significant Challenges Ahead in Developing and Demonstrating Future Combat System's Network and Software. GAO-08-409, March 07, 2008.
Why GAO Did This Study: The Army’s Future Combat System (FCS) requires a software-based advanced information network to meld people, sensors, and weapons into a cohesive fighting force. As software controls 95 percent of FCS’s functionality, it determines the success or failure of the program. The Army contracted with the Boeing Company as a lead systems integrator (LSI) to define, develop and integrate FCS, including software development.
Highlights
March 6, 2008
M-08-12
MEMORANDUM FOR FEDERAL AGENCIES
FROM: Robert Shea
Associate Director
SUBJECT: Guidance on Future Data Submissions under the Federal Funding Accountability and Transparency Act (Transparency Act)
Attached are the new Operational Guidelines that federal agencies shall use to report to USAspending.gov in compliance with the Federal Funding Accountability and Transparency Act. Agencies must employ these guidelines to submit data in an accurate format and on a timely basis to assure compliance with the Act. These guidelines supersede all previous guidelines. We anticipate within the next quarter, my office will provide guidance on measures of successful compliance with these guidelines and other data not currently being collected.
Richlin Security Service Co. v. Chertoff (06-1717)
Oral argument: March 19, 2008, Oral argument previews: Prepared by the
Legal Information Institute LLI Bulletin Editorial Board,
Appealed from: United States Court of Appeals, Federal Circuit (April 3, 2007)
EQUAL ACCESS TO JUSTICE ACT, PARALEGAL FEES, ATTORNEYS FEES
Richlin Security Service Company entered into two contracts with the Immigration and Naturalization Service, now part of the Department of Homeland Security, to provide security guard services for detainees being held at the Los Angeles International Airport. Due to a mutual mistake, Richlins employees were misclassified as Guard I instead of Guard II in the contracts, which resulted in their underpayment. Richlin litigated this case four times before the Department of Transportation Contract Appeals Board, which awarded Richlin payment for workers compensation premiums, payroll taxes, and wages. Richlin then applied pursuant to the Equal Access to Justice Act for reimbursement of attorney fees, expenses and costs associated with the underlying litigation. Although Richlin was fully compensated for attorneys fees, the Board only awarded Richlin reimbursement of paralegal services at cost rather than the amount billed, resulting in a $40,000 deficiency in recovery. Richlin appealed the decision to the United States Court of Appeals for the Federal Circuit, which affirmed the Boards decision. Richlin argues that paralegal services should be reimbursed under attorneys fees because paralegals perform substantive work which contributes to attorney work product. The United States contends that Congress intended for paralegal services to be considered expenses under the EAJA, which are reimbursed at cost. The outcome of this case will impact citizens and organizations that rely on the EAJA to bring claims against the government for vindication of rights.
Federal Acquisition: Oversight Plan Needed to Help Implement Acquisition Advisory Panel's Recommendations, by John P. Hutton, director, acquisition and sourcing management, before the Subcommittee on Government Management, Organization, and Procurement, House Committee on Oversight and Government Reform. GAO-08-515T, February 27, 2008. Why GAO Did This Study: A growing portion of federal spending is related to buying services such as administrative, management, and information technology support. Services accounted for about 60 percent of total fiscal year 2006 procurement dollars. The Services Acquisition Reform Act (SARA) of 2003 established an Acquisition Advisory Panel to make recommendations for improving acquisition practices. In January 2007, the panel proposed 89 recommendations to improve federal acquisition practices.
GAO was asked to testify on how the panel recommendations compare to GAOs past work and identify how the Office of Federal Procurement Policy (OFPP) expects the recommendations to be addressed. This statement is based on GAOs analysis of the advisory panels report. GAOs analysis is included in its December 2007 report titled, Federal Acquisition: Oversight Plan Needed to Help Implement Acquisition Advisory Panel Recommendation,
Highlights
February 20, 2008 M-08-11 MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS
AND AGENCIES FROM: Paul A. Denett Administrator
SUBJECT: Competitive Sourcing Requirements in Division D of
Public Law 110-161 This memorandum provides guidance on certain
government-wide provisions related to competitive sourcing in sections
739 and 747 of Division D of the Consolidated Appropriations Act, Fiscal
Year (FY) 2008, P.L. 110-161. Specifically, this guidance addresses: (1)
health and retirement fringe benefit comparability requirements, (2) the
use of competitive sourcing for human resources (HR) activities; (3)
application of the conversion differential, and (4) the performance of
commercial activities by non-profit agencies under the AbilityOne
Program.
Allison Engine
Co. v. United States (07-214), Oral argument previews: Prepared by the
Legal Information Institute LLI Bulletin Editorial Board: February 26,
2008,
In 1985, the U.S. Navy contracted with two shipyards for the
production of a new fleet of destroyers. Each destroyer
required an electrical generator set to provide electricity.
Several companies became involved in the project to build the
generator sets. None of these companies billed the federal
government but rather billed the company directly above them
in the chain of production. This case began when two
whistleblowers sued their former employer and other government
subcontractors under the False Claims Act. The U.S. District
Court for the Southern District of Ohio dismissed their claim
after holding that no FCA violation could occur without one of
the defendants having sent a direct bill to the government. On
appeal, the U.S. Court of Appeals for the Sixth Circuit held
that the case should continue because the False Claims Act
does not categorically require proof that the federal
government was billed directly. The Supreme Court's ultimate
decision could have far-reaching financial implications for
taxpayers, government contractors, and any party who seeks to
file suit under the False Claims Act.
Defense Acquisitions: DOD's Practices and Processes for Multiyear Procurement Should Be Improved. GAO-08-298, February 7, 2008.
What GAO Found DOD’s process for justifying multiyear programs leaves questions about the appropriateness of some approved MYPs and the cost effectiveness of investments made for the risks assumed, as indicated by recent submissions for the F-22A and V-22. Although the law has clear requirements for stable, low risk programs with realistic cost and savings estimates, lack of guidance and a rigorous process is not achieving this.
Highlights
Best Practices: Increased Focus on Requirements and Oversight Needed to Improve DOD's Acquisition Environment and Weapon System Quality. GAO-08-294, February 1, 2008.
What GAO Recommends: GAO recommends that the Secretary of Defense take actions to set achievable requirements for new weapon system development, oversee and expand initiatives that could improve quality, and use data to assess contractor performance and weapon system quality. DOD partially agreed with the recommendations, stating that its current practices or planned actions are appropriate. We believe our recommendations remain valid and can improve weapons systems quality.
Highlights
Executive Order
13457-Protecting American Taxpayers From Government Spending on Wasteful
Earmarks, January 29, 2008, 73 Fed. Reg. 6417, February 01, 2008.
Policy It is the policy of the Federal Government to be
judicious in the expenditure of taxpayer dollars. To ensure the proper
use of taxpayer funds that are appropriated for Government programs and
purposes, it is necessary that the number and cost of earmarks be
reduced, that their origin and purposes be transparent, and that they be
included in the text of the bills voted upon by the Congress and
presented to the President. For appropriations laws and other
legislation enacted after the date of this order, executive agencies
should not commit, obligate, or expend funds on the basis of earmarks
included in any non-statutory source, including requests in reports of
committees of the Congress or other congressional documents, or
communications from or on behalf of Members of Congress, or any other
non-statutory source, except when required by law or when an agency has
itself determined a project, program, activity, grant, or other
transaction to have merit under statutory criteria or other merit-based
decisionmaking.
Special Inspector General for Iraq Reconstruction , Quarterly Report to Congress, January 30, 2008.
Defense Contracting:
Contract Risk a Key Factor in Assessing Excessive Pass-Through
Charges. GAO-08-269, January 25, 2008.
Why GAO Did This
Study Defense’s (DOD) fiscal year 2006 spending on goods and
services was for subcontracts. Concerns have been raised among DOD
auditors and Congress about the potential for excessive passthrough
charges by contractors that add little or no value when work is
subcontracted. To better understand this risk, Congress mandated that
GAO assess the extent to which DOD may be vulnerable to these charges.
This report examines (1) DOD’s approach to assessing the risk of
excessive pass-through charges when work is subcontracted, (2) the
strategies selected private sector companies use to minimize risks of
excessive pass-through charges when purchasing goods and services, and
(3) DOD’s interim rule to prevent excessive passthrough charges
Highlights
Statement Of Stuart W. Bowen, Jr. Special Inspector General For Iraq Reconstruction Before The United States Senate, “Improving Contracting And Government Oversight Of Contractors Performing Work In Contingency Operations”, January 24, 2008.
Defense Logistics: The Army Needs to Implement an Effective Management and Oversight Plan for the Equipment Maintenance Contract in Kuwait. GAO-08-316R, January 22, 2008.
From the report: Subject: Defense Logistics: The Army Needs to Implement an Effective Management and Oversight Plan for the Equipment Maintenance Contract in Kuwait
The Department of Defense (DOD) relies on contractors to perform many of the functions needed to support troops in deployed locations. For example, at Camp Arifjan, Kuwait the Army uses contractors to provide logistics support for operations in Iraq and Afghanistan. Contractors at Camp Arifjan refurbish and repair a variety of military vehicles such as the Bradley Fighting Vehicle, armored personnel carriers, and the High-Mobility, Multi-Purpose Wheeled Vehicle (HMMWV). However, while contractors provide valuable support to deployed forces, we have frequently reported that long-standing DOD contract management and oversight problems increase the opportunity for waste and make it more difficult for DOD to ensure that contractors are meeting contract requirements efficiently, effectively, and at a reasonable price.
Federal Acquisition: Oversight Plan Needed to Help Implement Acquisition Advisory Panel Recommendations, GAO-08-160, December 20, 2007.
What GAO Recommends: GAO recommends that OFPP develop an oversight strategy or plan with milestones and reporting requirements to help it ensure the implementation of the SARA Panel recommendations and to gauge how they improve federal acquisition. OFPP agreed with GAO’s recommendation.
Highlights
FAR Case 2007-006, Contractor Compliance Program and Integrity Reporting, The Section of Public Contract Law of the American Bar Association provides comments on the proposed rule.
Private Security Contractors at War, Report from Human Rights
First.
From the Preface: This report examines the
dramatically expanded role of private security contractors (PSCs) in
Iraq and Afghanistan. It describes the failure of the U.S. government to
effectively control their actions, and in particular the inability or
unwillingness of the Department of Justice (DoJ) to hold them criminally
responsible for their illegal actions.
OFPP-Acquisition of
Green Products and Services, Notice, correction, 73 Fed. Reg. 2557,
January 15, 2008.
SUMMARY: The Office of Management and
Budget, Office of Federal Procurement Policy (OFPP) published a document
in the Federal Register of December 28, 2007, concerning a proposed OFPP
policy letter on the acquisition of green products and services. The
document erroneously contained an effective date.
Federal-Aid Highways: Increased Reliance on Contractors Can Pose Oversight Challenges for Federal and State Officials. GAO-08-198, January 8, 2007.
Why GAO Did This Study:
Pressure on state and local governments to deliver highway projects and services, and limits on the ability of state departments of transportation (state DOT) to increase staff levels have led those departments to contract out a variety of highway activities to the private sector. As requested, this report addresses (1) recent trends in the contracting of state highway activities, (2) factors that influence state highway departments’ contracting decisions, (3) how state highway departments ensure the protection of the public interest when work is contracted out, and (4) the Federal Highway Administrations’ (FHWA) role in ensuring that states protect the public interest. To complete this work, GAO reviewed federal guidelines, state auditor reports, and other relevant literature; conducted a 50-state survey; and interviewed officials from 10 selected state highway departments, industry officials, and FHWA officials.
Highlights
Office of Federal
Procurement Policy; Acquisition of Green Products and Services, Proposed
policy letter, 72 Fed. Reg. 73904, December 28, 2007.
SUMMARY: OFPP is proposing to issue a policy letter on green
procurement policies and strategies. The policy letter would address:
(1) General responsibilities of agencies for the procurement of green
products and services; (2) the relationship of green products and
services to other socioeconomic programs; (3) automatic substitution
policies; (4) listing of green products in Federal catalogues and online
ordering systems; (5) green requirements for paper and printing; (6)
application of green requirements in service contracting; and (7) energy
efficiency. The proposed policy letter would implement specific
provisions of Executive Order (E.O.) 13423, Strengthening Federal
Environmental, Energy, and Transportation Management, Section 6002 of
the Resource Conservation and Recovery Act (42 U.S.C. 6962), the Energy
Policy Act of 1992 (42 U.S.C. 6903), the Energy Policy Act of 2005 (42
U.S.C. 6361), and Section 9002 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8102). The proposed policy letter, when finalized,
would supersede OFPP Policy Letter 92-4, Procurement of
Environmentally-Sound and Energy- Efficient Products and Services, dated
November 2, 1992.
Comment Date: Comments must be received in writing on or
before February 26, 2008 to be considered in the formulation of the
final policy letter.
DOD
IG-The Army’s Procurement and Conditional Acceptance of Medium
Tactical Vehicles, Report No. D-2008-038, December 21, 2007.
Executive Summary(partial) Who Should Read This Report and
Why? Contracting officers and contract administrators should read this
report because it discusses the Army’s practices for conditional
acceptance and first inspection acceptance of the vehicles.
Background. The Family of Medium Tactical Vehicles (FMTV) consists of
families of Light-Medium Tactical Vehicles, which are 2-ton trucks, and
Medium Tactical Vehicles, which are 5-ton trucks. The FMTV includes
complementary trailers that supplement the vehicle fleet. The vehicles
have common components and various body styles for special combat,
combat support, and combat service support organizational missions. The
approved Presidential Budget for FYs 2005 and 2006 provided
approximately $956 million to procure 7,071 FMTVs. In addition, Congress
provided another $797 million to the program as part of the Emergency
Supplemental Appropriations Acts in FYs 2005 and 2006. The supplemental
budgets for FYs 2005 and 2006 provided funding to procure an additional
3,970 FMTVs.
Results. The Army was appropriately using
supplemental funds that Congress provided to the FMTV program office in
support of the Global War on Terrorism. However, the FMTV program office
was not adequately protecting the Government’s interest because it
conditionally accepted FMTVs. Further, the FMTV contractor, Stewart and
Stevenson Tactical Vehicle Systems, Limited Partnership, was not meeting
contract requirements for acceptance of vehicles at first Government
inspection.
Government Auditing Standards-Implementation Tool: Professional Requirements Tool for Use in Implementing Requirements Identified by "Must" and "Should" in the July 2007 Revision of Government Auditing Standards. GAO-08-210G, December 2007.
Department of Defense Inspector General, D-2008-022 FY 2006 DoD Purchases Made Through the National
Institutes of Health, November 15, 2007 (1.59MB) (Project No.
D2006-D000CF-0243.000)
Who Should Read This Report and Why? DoD
contracting officers, contracting specialists, program managers, and financial
managers should read this report. This report discusses problems we found when
either DoD organizations made purchases using the National Institutes of Health
(NIH) Electronic Commodities Store III (ECS III) contracts or NIH contracting
personnel made purchases on behalf of DoD using the NIH Chief Information
Officer-Solutions and Partners 2 Innovations (CIO-SP2i) contracts. Furthermore,
this report discusses 43 potential Antideficiency Act violations related to the
purchases reviewed and internal control deficiencies on interagency
acquisitions.
Defense Acquisitions: Overcoming Challenges Key to Capitalizing on Mine Countermeasures Capabilities. GAO-08-13, October 12, 2007.
What GAO Recommends
GAO is recommending that the Department of Defense analyze intelligence preparation capabilities, determine if Littoral Combat Ship concepts of operation can be reconciled, examine the need for and feasibility of fielding mine countermeasures systems on other ships, and delay full-rate production of certain systems. The Department of Defense concurred or partially concurred with the first three recommendations. It did not agree to delay full-rate production of systems, citing training needs and production efficiencies. GAO maintains that a delay is warranted as long as the Littoral Combat Ship remains the systems’ main platform.
Highlights
Army accepts Gansler Commission report on contracting; commits to action
Nov 01, 2007
Secretary of the Army Pete Geren accepted Nov. 1 the report of an independent commission citing structural weaknesses and organizational shortcomings in the U.S. Army's acquisition and contracting system used to support expeditionary operations.
Dr. Jacques Gansler, former undersecretary of defense for acquisition, technology and logistics, presented "The Commission on Army Acquisition and Program Management in Expeditionary Operations" report to Secretary Geren, who earlier this year formed the commission to assess the Army's acquisition system. Geren said the report offered the "blunt and comprehensive assessment we asked for and needed, and a plan for the way ahead."
See Gansler Commission Report and See Statement by Ike Skelton, House Armed Services Committee Chairman
Defense Contracts: Contracting for Military Food Services under the Randolph-Sheppard and Javits-Wagner-O’Day Programs. GAO-08-3, October 30., 2007.
Why GAO Did this Study Randolph-Sheppard and Javits-Wagner-O’Day (JWOD) are two federal programs that provide employment for persons with disabilities through federal contracts. In 2006, participants in the two programs had contracts with the Department of Defense (DOD) worth $465 million annually to provide dining services at military dining facilities. The 2007 National Defense Authorization Act directed GAO to study the two programs. This report examines (1) differences in how the Randolph-Sheppard and JWOD programs provide food services for DOD and (2) differences in how contracts are awarded, prices are set, and program beneficiaries (i.e. persons with disabilities) are compensated. GAO interviewed program officials, conducted a survey of states with Randolph-Sheppard programs, and reviewed eight Randolph-Sheppard and six JWOD contracts.
Highlights
Office of the Special Inspector General for Iraq Reconstruction,
Quarterly Report to Congress, October 30, 2007.
Highlights Two notable developments provide a backdrop for SIGIRs work this quarter. First, total relief and reconstruction investment for Iraq from all sourcesthe United States, Iraq, and international donorspassed the $100 billion mark. And second, total attacks on Coalition forces and Iraqis dropped to their lowest levels in over a year, primarily because of successes achieved through the surge strategy. SIGIRs oversight team also achieved two noteworthy milestones this quarter. Both the total number of audits produced and the total number of inspections produced by SIGIR since we began our oversight mission passed the 100 mark. This collective body of published reporting, together with the many investigations SIGIR has carried out, stands as a testament to the important benefits that consistent and rigorous oversight can contribute to the important mission in Iraq.
DOD IG Report,
D-2008-007 Task Orders on the Air Force Network-Centric Solutions Contract,
October 25, 2007.
Who Should Read This Report and Why? People
responsible for or involved in the implementation and execution of
multiple-award, indefinite-delivery, indefinite-quantity contracts should read
this report. The report addresses contracting, information assurance, small
business, and oversight issues that require management attention to ensure
Government contracts are sufficiently planned and implemented. Specifically, we
reviewed the task orders that have been issued from this contract.
Department of Homeland
Security: Challenges in Implementing the Improper Payments Information Act and
Recovering Improper Payments. GAO-07-913, September 19, 2007.
What
GAO Found: DHS has made some progress in implementing IPIA requirements,
but much more work remains for the agency to become compliant with IPIA. For
example, while DHS has made progress in identifying its programs, for fiscal
year 2006, the agency did not perform the required first stepa risk
assessmenton approximately $13 billion of its more than $29 billion in
disbursements subject to IPIA. Until DHS fully assesses its programs, the
potential magnitude of improper payments is unknown. Highlights
Management of DoD Contractors and Contractor Personnel Accompanying U.S. Armed Forces in Contingency Operations Outside the United States September 25, 2007 Memorandum from Gordon England, Deputy Secretary of Defense
DOD-Office of the Inspector General, D-2007-130 Contracting Practices at Air Force Laboratory Facilities
(September 28, 2007) (Project D2006-D000AB-0217.000)
This report discusses the need for contracting personnel to improve the award,
administration, and monitoring of contracts at Air Force laboratories.
MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS CHAIRMAN OF THE JOINT
CHIEFS OF STAFF COMMANDER, U.S. SPECIAL OPERATIONS COMMAND DIRECTORS OF THE
DEFENSE AGENCIES
SUBJECT: Prototyping and Competition, September 19,
2007, from John J. Young Jr, Acting Under Secretary of Defense, Acquisition &
Technology.
Excerpt: Military Services and Defense Agencies will
formulate all pending and future programs with acquisition strategies and
funding that provide for two or more competing teams producing prototypes
through Milestone (MS) B.
Small Business Contracting: Observations from Reviews of Contracting and Advocacy Activities of Federal Agencies, by William B. Shear, director, financial markets and community investment, before the Subcommittee on Government Management, Organization, and Procurement, House Committee on Oversight and Government Reform. GAO-07-1255T, September 26, 2007.
What GAO Found: Small businesses received 28 percent of the $11 billion in contracts that DHS, GSA, DOD, and the Corps awarded directly for Katrina-related projects. Information on whether DHS and GSA required subcontracting plans was generally not available in the federal governments official procurement database for 70 percent or more of the contracting dollars each agency awarded for activities related to Hurricane Katrina. This database should have contained information on whether or not the agencies required subcontracting plans in these instances. The lack of transparency surrounding much of the agencies subcontracting data may lead to unwarranted perceptions about how the federal procurement system is working, particularly in terms of the governments stated preference for contracting with small businesses. GAO recommended in its March 2007 report that DHS, GSA, and DOD take steps designed to ensure compliance with federal contracting regulations and more transparently disclose the extent to which subcontracting opportunities are available to small businesses. These agencies generally agreed with GAOs recommendations. GSA has implemented them while DOD and DHS indicate they are in the process of doing so.
Highlights
Plans for hiring reemployed annuitants to fill acquisition-related positions, OFPP Memo from Paul A. Denett, Administrator, September 04,
Acquisition Advisory Panel Final Report, The final report of the Acquisition Advisory Panel is now available. January 2007, posted September 10, 2007.
DOD-Office of the Inspector General -- Audit
Missile Defense Agency Purchases for and from Governmental Sources - Report No. D-2007-117 (PDF) - Project No. D2006-D000FH-0160.000, August 20, 2007.
Results: The Missile Defense Agency did not have adequate internal controls over governmental purchases. Specifically, the Missile Defense Agency did not properly manage the outgoing and incoming MIPR processes. The internal controls were inadequate because the Missile Defense Agency did not follow applicable MIPR regulations. As a result, the Missile Defense Agency personnel could not ensure that all purchases were in the best interest of the Government and complied with Federal, DoD, and the Missile Defense Agency regulations as well as public laws. In addition, the Defense Finance and Accounting Service did not timely respond to audit request for information and documentation for the Missile Defense Agency disbursements.
The Director of the Missile Defense Agency should direct the Business Management Office to develop procedures and controls that ensure required data and supporting documents are completed and reviewed before a MIPR is certified; develop procedures and controls to ensure that MIPR disbursements and reimbursable billings are verified against source documents and all documentation is maintained; and develop procedures and controls to ensure recorded commitments, obligations, and deobligations are valid and timely. The Director of Defense Finance and Accounting Service should develop procedures and controls to ensure that the Defense Finance and Accounting Service centers and field offices make audit information and documentation readily available for timely review.
DOD's Lack of Adherence to Key Contracting Principles on Iraq Oil Contract Put Government Interests at Risk, GAO-07-83, July 31, 2007.
What GAO Found: DOD considered DCAAs audit findings on the RIO I contract and performed additional analysis before deciding to pay the contractor nearly all of the $221 million in costs that DCAA questioned. DOD did, however, remove about $112 million of the questioned costs from the amount used to establish the contractors fee pool, which resulted in an effective lowering of the fee received by the contractor by approximately $5.8 million. Lack of timely negotiations contributed significantly to DODs decision on how to address the questioned costsall 10 task orders were negotiated more than 180 days after the work commenced. As a result, the contractor had incurred almost all its costs at the time of negotiations, which influenced DODs decision to pay nearly all of the questioned costs. The negotiation delays were in part caused by changing requirements, funding challenges, and inadequate contractor proposals. In our previous work, we have found that negotiation delays can increase risk to the government. Overall, DCAA considers $26 million of the costs questioned on the RIO I contract to be sustained, which DCAA defines as cost reductions attributable to its audit findings. We compared the sustention rates on DCAAs 11 RIO I contract audits to the sustention rates for 100 DCAA audits of other Iraq contract actions, and found that the sustention rates varied widely for both groups. Highlights
D-2007-115 Army Information Technology Enterprise Solutions-2 Services
Contract (August 9, 2007) (2.1MB) (Project
D2006-D000AS-0173.000), DOD Office of the Deputy Inspector General for Auditing
Results The Army Information Technology,
E-Commerce, and Commercial Contracting Center contracting officials did not
justify consolidating contract requirements for the $20 billion ITES-2S
contract. Additionally, the officials selected an inappropriate North American
Industry Classification System (NAICS) code in the solicitation of the contract.
As a result, ITES-2S is a bundled contract that improperly restricted small
business competition and was unsuitable for small business award. Bundling a
contract without justification violates United States Code and Federal
regulations. (See the Finding section of the report for the detailed
recommendations.) The Army Contracting Agency internal controls were not
adequate. We identified material internal control weaknesses on the adherence of
the ITES-2S contract NAICS code to the Federal Acquisition Regulation
requirements. Summary
Defense Contract Management: DOD's Lack of Adherence to Key Contracting Principles on Iraq Oil Contract Put Government Interests at Risk, GAO-07-839, July 31, 2007.
What GAO Found: DOD considered DCAA’s audit findings on the RIO I contract and performed additional analysis before deciding to pay the contractor nearly all of the $221 million in costs that DCAA questioned. DOD did, however, remove about $112 million of the questioned costs from the amount used to establish the contractor’s fee pool, which resulted in an effective lowering of the fee received by the contractor by approximately $5.8 million. Lack of timely negotiations contributed significantly to DOD’s decision on how to address the questioned costs—all 10 task orders were negotiated more than 180 days after the work commenced. As a result, the contractor had incurred almost all its costs at the time of negotiations, which influenced DOD’s decision to pay nearly all of the questioned costs. The negotiation delays were in part caused by changing requirements, funding challenges, and inadequate contractor proposals. In our previous work, we have found that negotiation delays can increase risk to the government. Overall, DCAA considers $26 million of the costs questioned on the RIO I contract to be sustained, which DCAA defines as cost reductions attributable to its audit findings. We compared the sustention rates on DCAA’s 11 RIO I contract audits to the sustention rates for 100 DCAA audits of other Iraq contract actions, and found that the sustention rates varied widely for both groups.
Highlights
Bureau of Customs and Border Protection Notice of
Issuance of Final Determination Concerning Printer Cartridges AGENCY: U.S.
Customs and Border Protection, Department of Homeland Security. ACTION: Notice
of final determination, 72 Fed. Reg. 44566, August 08, 2007.
SUMMARY: This document provides notice that the Bureau of Customs and
Border Protection (CBP) has issued a final determination concerning the country
of origin of certain printer cartridges which may be offered to the United
States Government under an undesignated government procurement contract. CBP has
concluded that, based upon the facts presented, the operations performed at the
United States facility do not result in a substantial transformation of the
goods. Therefore, the goods will not be considered to be products of the United
States.
Dates: The final determination was issued on August 2, 2007. A
copy of the final determination is attached. Any party-at-interest, as defined
in 19 CFR 177.22(d), may seek judicial review of this final determination within
30 days of August 8, 2007.
Defense Finance And Accounting Service,
Memorandum For Integrated Accounts Payable System Contractors, July
12, 2007 Subject: Requirement for Electronic Submission of Payment
Requests Defense Federal Acquisition Regulation Supplement (DFARS)
Clause 252.232-7003
This memorandum notifies you that beginning
October 1,2007, DFAS Columbus and DFAS Limestone will reject any
non-electronically received invoice if electronic submission is required
in the contract, unless the contractor has provided sufficient
documentation/rationale to show they are unable to submit the payment
requests in electronic form.
Supplemental Emergency Contracting
Cadre, July 30, 2007, MEMORANDUM FOR THE CHIEF ACQUISITION OFFICERS, from
Paul A. Denett, OFPP Administrator
Excerpt However, to ensure that
additional human resources are available to the government-wide contracting
community during an emergency, our supplemental cadre of highly-skilled
acquisition professionals must be replenished and increased. This supplemental
cadre will be available to support any agency needing additional contracting
personnel to support an emergency response and recovery effort. I ask each Chief
Acquisition Officer to encourage their agencys contracting professionals,
GS-1102s or others performing similar functions, to join this supplemental cadre
and increase the number of contracting professionals that will assist DHS and
other agencies in responding to national emergencies and disasters.
Congressional Research Service Report-Defense: FY2008 Authorization and Appropriations Updated July 30, 2007
Forest Service Could Improve
Efficiency of Field-Level Timber Sales Management by Maintaining More Detailed
Data, GAO-07-764, June 27, 2007.
Why GAO Did This Study: For
years, GAO has raised concerns about the ability of the Department of
Agriculture’s Forest Service (Service) to track the amounts it obligates
for and spends on timber sales and to use this information in managing the
sales. Timber sales are generally carried out by ranger districts (the lowest
level of the Services decentralized organizational structure), which are
overseen by national forest offices. The Bureau of Land Management (BLM) within
the Department of the Interior also conducts timber sales. This report examines
the extent to which (1) the Forest Service tracks timber sales-related
obligations and expenditures, including the extent to which the Service uses
this information in making management decisions; (2) BLM tracks timber
sales-related obligations and expenditures; and (3) both agencies track their
timber sales-related revenue. Highlights
JULY 2007 REVISION OF GOVERNMENT
AUDITING STANDARDS ISSUED, July 27, 2007. David M. Walker, comptroller
general of the United States and head of the U.S. Government Accountability
Office, has issued the July 2007 revision of Government Auditing Standards. The
standards, which were first published in 1972, and are commonly referred to as
the “Yellow Book,” cover federal entities and those organizations
receiving federal funds. Various laws require compliance with the comptroller
general’s auditing standards in connection with audits of federal entities
and funds. Furthermore, many states and local governments and other entities,
both domestically and internationally, have voluntarily adopted these standards.
The July 2007 revision of Government Auditing Standards supersedes the
2003 revision and updates the January 2007 revision. This revision contains the
January 2007 revision plus updated quality control and peer review sections in
chapter 3 which were exposed in January 2007. The July 2007 revision represents
the completed 2007 revision of Government Auditing Standards, and is the version
that should be used by government auditors until further updates and revisions
are made.
Defense Acquisitions: Realistic Business Cases Needed to Execute Navy Shipbuilding Programs, by Paul L. Francis, director, acquisition and sourcing management team, before the Subcommittee on Seapower and Expeditionary Forces, House Committee on Armed Services. GAO-07-943T, July 24, 2007.
Why GAO Did This Study: The Navy is beset with long-standing problems that affect its ability to accomplish ambitious goals for its shipbuilding portfolio. Significant cost growth and long schedule delays are persistent problems. Making headway on these problems is essential in light of the serious budget pressures facing the nation.
Highlights
Federal Contracting: Use of Contractor Performance Information, by William T. Woods, director, acquisition and sourcing management, before the Subcommittee on Government Management, Organization, and Procurement, House Committee on Oversight and Government Reform. GAO-07-1111T, July 18, 2007.
Why GAO Did This Study This testimony covers three main areas concerning the use of contractor performance information: (1) the various ways in which a contractor’s performance may be considered in the contracting process; (2) how information on past performance is to be used in selecting contractors, as well as the various mechanisms for how that occurs; and (3) some of the key issues that have arisen in considering past performance in source selection, as seen through the prism of GAO’s bid protest decisions.
Highlights
Federal Acquisitions and Contracting: Systemic Challenges Need Attention, by David M. Walker, Comptroller General of the United States, before the Senate Committee on Homeland Security and Governmental Affairs. GAO-07-1098T, July 17., 2007.
Why GAO Did This Study
In fiscal year 2006, the federal government spent over $400 billion for a wide variety of goods and services, with the Department of Defense (DOD) being the largest purchaser. Given the large and growing structural deficit, the government must get the best return it can on its investment in goods and services.
This testimony highlights four key acquisition challenges agencies face: (1) separating wants from needs, (2) establishing and supporting realistic program requirements, (3) using contractors in appropriate circumstances and contracts as a management tool, and (4) creating a capable workforce and holding it accountable
Highlights
Environmental Satellite Acquisitions: Progress and Challenges, by David A. Powner, director, information technology management issues, before the Senate Committee on Commerce, Science, and Transportation. GAO-07-1099T, July 11, 2007.
What GAO Found The GOES-R acquisition, originally estimated to cost $6.2 billion and scheduled to have the first satellite ready for launch in 2012, is at a much earlier stage in its life cycle than NPOESS. In September 2006, GAO reported that the National Oceanic and Atmospheric Administration (NOAA) had issued contracts for the preliminary design of the overall GOES-R system to three vendors and expected to award a contract to one of these vendors in August 2007 to develop the satellites. However, analyses of GOES-R cost—which in May 2006 was estimated to reach $11.4 billion—led the agency, in September 2006, to reduce the program’s scope from four to two satellites and to discontinue one of the critical sensors. Program officials now report that they are reevaluating that decision and may further revise the scope and requirements of the program in coming months. GAO also reported that NOAA had taken steps to implement lessons learned from past satellite programs, but more remained to be done to ensure sound cost estimates and adequate system engineering capabilities. GAO currently has work under way to evaluate GOES-R risks and challenges.
Highlights
Defense Contracting: Improved Insight and Controls Needed over DOD’s Time-and-Materials Contracts. GAO-07-273, June 29, 007.
What GAO Recommends
GAO is recommending that DOD require more diligence in justifying the use of certain types of time-and-materials contracts, analyze the use of time-and-materials on indefinite-quantity contracts to ensure that it does not become the default contract type, and require monitoring plans to reflect the risks inherent in this contract type. In written comments on a draft of this report, DOD concurred with the recommendations.
Highlights
Defense Contracting: Use of Undefinitized Contract Actions Understated and Definitization Time Frames Often Not Met. GAO-07-559, June 19, 2007.
What GAO Found: DOD faces a potentially large gap in its data and thus does not know the
extent to which it is using UCAs. DOD’s reported obligations for UCAs
increased from $5.98 billion in 2001 to $6.53 billion in 2005. However, the
government’s procurement system does not identify undefinitized task or
delivery orders or undefinitized contract modifications. In light of DOD’s
reported increase in its use of task and delivery orders in recent years, the
data gap could be large. Because DOD decentralizes oversight of its UCAs,
the department would have to manually obtain data from each of its local
commands in order to obtain a complete picture. The local commands GAO
visited performed oversight of their UCAs to varying degrees.
Highlights
Coast Guard: Challenges Affecting Deepwater Asset Deployment and Management and Efforts to Address Them. GAO-07-874, June 18, 2007.
Why GAO Did This Study The U.S. Coast Guard’s Deepwater program was designed to replace aging vessels and aircraft and information capabilities with new and upgraded assets and equipment. GAO’s prior work raised concerns about the Coast Guard’s efforts to upgrade or acquire assets on schedule and manage the Deepwater prime contractor.
This report responds to congressional direction contained in a conference report accompanying the Department of Homeland Security (DHS) fiscal year 2007 appropriations bill. GAO addressed two objectives: (1) What is the status of key Deepwater assets and how is the Coast Guard addressing any asset-related challenges that have been encountered? (2) What is the status of the Coast Guard’s overall management of the Deepwater contract?
Highlights
Department of Homeland Security: Progress and Challenges in Implementing the Department's Acquisition Oversight Plan. GAO-07-900, June 13, 2007
What GAO Recommends
GAO is recommending that the CPO reevaluate the approach to the acquisition planning reviews and that DHS enhance internal controls to strengthen the oversight plan through periodic external reviews and knowledge sharing. DHS concurred with GAO’s recommendations
Highlights
Defense Acquisitions: Role of Lead Systems Integrator on Future Combat Systems Program Poses Oversight Challenges. GAO-07-380, June 6, 2007.
Why GAO Did This Study: The Army’s Future Combat Systems (FCS) program features multiple new systems linked by a first-of-a-kind information network. The Army contracted with a lead systems integrator (LSI) for FCS that could serve in a more expansive role than a typical prime contractor would. In response to a congressional mandate, this report addresses (1) why the Army decided to employ an LSI for the FCS program; (2) the nature of the LSI’s working relationship with the Army; and (3) how FCS contract fees, provisions, and incentives work.
Highlights
OMB Guidance
Emergency Acquisitions Guide (May 31, 2007)
Enhancing Competition in Federal Acquisition (May 31, 2007)
Service-Disabled Veteran-Owned Small Business Procurement Program, May 24, 2007 Memorandum from Anthoney Martoccia, Director Office of Small Business Programs, OFFICE OF THE UNDER SECRETARY OF DEFENSE. Memo discusses actions taken and tools available to the acquisition workforce to help the Department of Defense achieve the SDVOSB goal
Air Force Contract Policy Memo 07-C-02, April 17, 2007. Excerpt: In cases where the terms of another agency's schedule or contract prohibit such debriefings, Air Force contracting officers shall not employ those contracting vehicles unless prior authorization is obtained from SAF/AQC.
MEMORANDUM FOR THE PRESIDENT’S MANAGEMENT COUNCIL, Clay Johnson III, Deputy Director for Management,SUBJECT: Validating the Results of Public-Private Competition, April 13, 2007.
The purpose of this memorandum is to provide guidance to help agencies substantiate that savings are achieved and performance is improved through public-private competition. Effective post competition oversight will ensure agencies and taxpayers receive the expected benefits from competition. It also reinforces public trust and confidence in the competitive sourcing initiative.
Defense Acquisitions: Improved Management and Oversight Needed to Better Control DOD's Acquisition of Services, by John P. Hutton, director, acquisition and sourcing management, before the Subcommittee on Defense, House Committee on Appropriations. GAO-07-832T, May 10. 2007.
Why GAO Did This Study: The Department of Defense (DOD) is relying more and more on contractors to provide billions of dollars in services. Congress has pushed DOD to employ sound business practices when using the private sector for services.
This testimony discusses DOD’s (1) increasing reliance on contractors; (2) efforts to follow sound business practices when acquiring services; and (3) actions to improve its management and oversight of services.
This testimony is based on GAO’s work spanning several years as well as recent reports issued by the Inspectors General.
Highlights
D-2007-079 Performance Based Service Contract for Environmental Services
at the Navy Public Works Center, San Diego, California (04/03/2007) D2005-D000CH-0123.001
Who Should Read This Report and
Why? Defense officials responsible for the Office of Management and
Budget (OMB) Circular No. A-76, “Performance of Commercial
Activities (Revised),” May 29, 2003, public-private competition
process and DoD acquisition and contracting personnel should read this
report. It addresses the management of a performance-based environmental
services contract resulting from a public-private competition and also
discusses the use of fixed-price, performance-based, indefinite-delivery,
indefinite-quantity (IDIQ) task orders.
Defense Acquisitions: Missile Defense Agency’s Flexibility Reduces Transparency of Program Cost, by Paul Francis, director, acquisition and sourcing management, before the Subcommittee on Defense, House Committee on Appropriations, GAO-07-799T, April 30, 2007
What GAO Recommends
GAO continues to encourage DOD to act on prior recommendations to
implement a knowledge-based acquisition strategy for all BMDS elements
and to adopt more transparent criteria for reporting each element’s
quantities, cost, and performance. In March 2007, GAO recommended that
DOD adopt firm baselines, use procurement funds for operational assets,
and adopt other measures to better track cost and outcomes against
goals. DOD did not agree to an element-based reporting approach, but is
investigating other ways to provide more program transparency.
Highlights
Office of the Special Inspector General for Iraq Reconstruction, Quarterly Report to Congress, April 30, 2007.
Letter sent by Senators Kerry and Snowe relating to a provision in HR 1591 (U.S. Troop Readiness, Veterans’ Health, Katrina Recovery and Iraq Accountability Appropriations Act of 2007) that may endanger small business set-asides and preferences. April 16, 2007.
Implementation of OMB Circular No. A-76 at Science Agencies. GAO-07-434R, March 16, 2007.
SUMMARY: In summary, we found that the five science agencies under the Committee’s jurisdiction generally implemented the A-76 process as revised in May 2003. However, we did find one exception and two deviations. The exception involved the Department of Commerce, which had not put out for competition any commercial activity performed by National Institute for Standards and Technology personnel. Additionally, OMB granted deviations to the new A-76 process requirements for two other agencies. OMB allowed NASA to put out for competition new commercial scientific and technological research activities-called NASA Research Announcements-outside the normal A-76 process. Nearly all of NASA’s public-private competitions have been competed under this deviation. OMB also approved the Department of Energy’s pilot program for determining whether use of the General Services Administration’s Multiple Award Schedules would increase competition.
Supplemental Information Regarding Full Committee Hearing on the General Services Administration, March 27, 2007. From the Majority Staff, Committee on Oversight and Government Reform. and the Statement Of Lurita Doan Administrator, U.S. General Services Administration Before The Committee On Oversight And Government Reform, U.S. House Of Representatives MARCH 28, 2007. See also the March 28, 2007, report from the Minority Staff, Allegations of Misconduct at the General Services Administration: A Closer Look.
Special Inspector General for Iraq Reconstruction Iraq Reconstruction: Lessons in Program and Project Management, March 21, 2007. Iraq Reconstruction: Lessons in Program and Project Management The third and final Lessons Learned report, published in March 2007, focuses on the program and project management of the U.S.-led reconstruction mission, and captures the evolution of the key agencies charted to oversee the effort. A forum of experts gathered on April 12, 2006 at the National Defense University to discuss this issue and provide recommendations for improving the U.S. government’s capacity to manage programs and projects in contingency environments. The panel included senior U.S. government officials, academics, and industry executives. The report tracks the evolution of the three organizations responsible for providing the strategic oversight and tactical direction for the reconstruction program: The Office of Reconstruction and Humanitarian Assistance, the Coalition Provisional Authority, and the U.S. Mission-Iraq. The report begins with an overview of the planning environment, which had a direct effect on the capacity of program managers to execute and control reconstruction projects. It then analyzes CPA’s Program Management Office-the entity established to plan and manage the $18.4 billion infrastructure-focused program-and the delays in executing reconstruction projects during the winter and spring of 2004. The final section of the report describes how program managers met the challenge of constant change, particularly the reprogramming that occurred during the summer and fall of 2004.
Defense Acquisitions: Air Force Decision to Include a Passenger and Cargo Capability in Its Replacement Refueling Aircraft Was Made without Required Analyses. GAO-07-367R, March 6, 2007.
Results in Brief
Mandatory Air Force policy requires Air Force organizations to use a formal capabilities-based approach to identify, evaluate, develop, field, and sustain capabilities that compete for limited resources. Contrary to mandatory Air Force implementing guidance, however, the Air Force proposal for a replacement refueling aircraft included a passenger and cargo capability without analyses identifying an associated gap, shortfall, or redundant capability. According to mandatory Air Force implementing guidance, analyses supporting the decision-making process should assess a capability based on the effects it seeks to generate and the associated operational risk of not having it. In this case, the supporting analyses determined neither need nor risk with regard to a passenger and cargo capability. Air Force officials could not provide supporting information sufficient to explain this discrepancy between the analyses and their proposal. Without sound analyses, the Air Force may be at risk of spending several billion dollars unnecessarily for a capability that may not be needed to meet a gap or shortfall.
Office of the Inspector General -- Audit
Department of the Navy Purchases for and from Governmental Sources - Report No. D-2007-062 (PDF) - Project No. D2006-D000FH-0021.000
Date: February 28, 2007
Results: Specifically, the Navy internal controls did not ensure that it properly administered outgoing and incoming MIPRs. The internal controls were inadequate because the Navy did not follow MIPR guidance. Additionally, the existing guidance from the Under Secretary of Defense (Comptroller)/Chief Financial Officer was unclear. As a result, Navy MIPRs violated public law and did not comply with Federal, DoD, and Navy regulations.
Zoltek filed a petition for certiorari with the Supreme Court on February 20, 2007. (Appendices) The Federal Circuit case is ZOLTEK CORPORATION v. THE UNITED STATES, CAFC Nos. 04-5100,-5012, September 21, 2006. The petition poses the issues as follows:
“Where a government-authorized contractor performed
some or all of the steps of a patented process outside the
United States, but the products of that process were imported
into and used in the United States by and for the United
States, the questions presented by this Petition are:
1. Whether conduct by the government through its
authorized contractors that would otherwise constitute
patent infringement under § 271(g) or 271(a) is a taking
of property subject to the Fifth Amendment?
2. Whether a patent-holder can seek compensation in
the Court of Federal Claims for such otherwise infringing
conduct either: (A) under § 1498, notwithstanding
that some or all steps of the process were performed outside
the United States; or, if not, (B) as a claim for just
compensation under the Fifth Amendment cognizable
pursuant to the Tucker Act, 28 U.S.C. § 1491(a)?”
NASA Procurement: Use of Award Fees for Achieving Program Outcomes
Should Be Improved. GAO-07-58, January 17, 2007.
Why GAO Did This Study: Cost-plus-award-fee contracts accounted for almost half of the National Aeronautic and Space Administration’s (NASA) obligated contract dollars for fiscal years 2002-2004. Since 1990, we have identified NASA’s contract management as a high-risk areain part because of a lack of emphasis on end results. You asked us to examine (1) the extent NASA’s guidance on award fees addresses problems previously identified with the use of award-fee contracts and (2) whether NASA follows its guidance in using award fees to achieve desired outcomes. We reviewed the top 10 dollar value award-fee contracts active from fiscal years 2002 through 2004.
Highlights
District of Columbia: Procurement System Needs Major Reform.
GAO-07-159, January 19, 2007.
What GAO Found: The District’s procurement law generally does not apply to all District entities nor does it provide authority to the CPO to effectively carry out and oversee the full scope of procurement responsibilities across all agencies. A lack of uniformity in its procurement law and the CPO’s limited authority not only undermines transparency, accountability, and competition but also increases the risk of preferential treatment for certain vendors and ultimately drives up costs. The current law exempts certain entities and procurements from following the law’s competition and other requirements, and according to current and former District procurement officials, there is a push to expand independent procurement authoritya move that would reverse action taken by the District a decade ago. Other provisions of current law further erode competition. Notably, the law provides broad authority for sole source contracting and establishes high-dollar thresholds for small purchases, which are generally not subject to full and open competition. Also, in implementing the law, sufficient management oversight is lacking to ensure employees do not make unauthorized commitments.
Highlights
Government Auditing Standards, January 2007 Revision (GAO-07-162G)
On February 1, 2007, the Comptroller General of the United States issued the 2007 revision of Government Auditing Standards, which supersedes the 2003 revision. The January 2007 version contains the final 2007 revisions to the standards, except for the quality control and peer review sections in chapter 3. Concurrent with the electronic issuance of this revision of Government Auditing Standards, GAO is exposing for comment redrafted sections on quality control and peer review in response to the wide range of comments we received on those sections. The printed version of the complete 2007 revision of Government Auditing Standards will be available after the quality assurance and peer review sections are finalized and incorporated into the standards. (Current anticipated time frame is late spring of 2007.)
The effective date for the 2007 revision of Government Auditing Standards is for financial audits and attestation engagements for periods beginning on or after January 1, 2008, and for performance audits beginning on or after January 1, 2008. Early implementation is permissible and encouraged.
Certain standards issued by the AICPA’s Auditing Standards Board (ASB) have earlier effective dates. For financial statement audits performed under GAGAS, the effective dates of those new ASB standards will apply. Until the 2007 GAGAS revisions become effective, auditors should adopt the terminology and definitions in SAS No. 112 when reporting on internal control deficiencies and include in their reports material weaknesses and other significant deficiencies in order to promote consistency in communicating and reporting on internal control deficiencies.
GAO:High-Risk Series: An Update, GAO-07-310, January 31, 2007.
D-2007-047 Air Force Acquisition Executive's Management Oversight and
Procurement Authority for Acquisition Category I and II Programs
(01/23/2007) (2MB)
Background: This report is the second in a series of audit reports that will discuss the Service Acquisition Executives management oversight and procurement authority for Acquisition Category IC and II programs. This report discusses the management oversight and procurement authority within the Air Force.The two other reports will address the management oversight and procurement authority within the Army and Navy. We initiated this audit because of congressional and DoD interest in whether Service milestone decision authorities and procurement officials were complying with statutory and regulatory requirements for acquisitions.
The Air Force relies on its acquisition executives (the Air Force Acquisition Executive for Acquisition Category IC programs and Program Executive Officers in most cases for Acquisition Category II programs) to be program milestone decision authorities. Milestone decision authorities oversee the development and procurement of systems to meet Air Force mission requirements. In FY 2006, the Air Force acquisition officials were responsible for overseeing the expenditure of $22.6 billion in research, development, test, and evaluation funding and $32.5 billion in procurement funding.
To evaluate the adequacy of Air Force milestone decision authority management oversight and procurement authority, we selected for review 17 Acquisition Category IC and II programs with development and production costs totaling $73 billion.
Summary
Defense Acquisitions: DOD Needs to Exert Management and Oversight
to Better Control Acquisition of Services, by Katherine V. Schinasi,
managing director, acquisition and sourcing management, before the
Subcommittee on Readiness and Management Support, Senate Committee on
Armed Services. GAO-07-359T, January 17, 2007.
What GAO Found: Numerous persistent problems have resulted in reduced efficiencies and effectiveness and have exposed DOD to unnecessary risks when acquiring services. Knowing the defense acquisition landscape helps put the magnitude of these problems in perspective-
• DOD’s obligations on service contracts have jumped from $82.3 billion in fiscal year 1996 to $141.2 billion in fiscal year 2005.
• DOD’s acquisition workforce has been downsized during this time frame without sufficient attention to requisite skills and competencies.
Highlights
DOD-
Office of the Inspector General -- Audit, D-2007-044 FY 2005 DoD Purchases Made Through the Department of the Interior January 16, 2007. (View summary only)
Results: Purchase card program officials failed to establish effective controls over the accounts of closed purchase cards with credit balances at three Army installations, three Navy installations, and two Air Force installations. For the installations reviewed, two Army, three Navy, and two Air Force agency/organization program coordinators did not monitor closed accounts that had credit balances. Also, Army, Navy, and Air Force purchase card program officials did not retain cardholder documentation for closed accounts. As a result, credit balances on closed accounts of purchase cards may not be properly identified, refunded, and available for Government use (finding A).
Controls over the use of convenience checks were weak and program officials did not establish an effective oversight program at Army, Navy, and Air Force installations visited. Specifically, Army, Navy, and Air Force officials did not issue delegation of authority letters to convenience check writers, review the program, or conduct unannounced audits of convenience check accounts. Further, Army and Air Force approving officials did not retain documentation when checks were used. As a result, convenience checks are vulnerable to unnecessary risk and misuse (finding B).
Controls over the purchase card programs at Air Force installations visited were inadequate, and program oversight was weak. In addition, controls over purchase card program training were weak at two of the three Navy installations visited. Specifically, Navy and Air Force cardholders and approving officials did not receive required initial purchase card training or the refresher purchase card training; Air Force agency/organization program coordinators and approving officials had more than the standard span of control for purchase card accounts; and Air Force agency/organization program coordinators were purchase cardholders and convenience check writers. Unless purchase card program management officials strengthen internal controls and program oversight, the Navy and Air Force cannot ensure continuous program improvement and risk mitigation necessary to prevent fraud, waste, or mismanagement (finding C).
The Director, Army Purchase Card Program Management Office; the Director of the Department of the Navy, Consolidated Card Program Management Division; and the Director, Air Force Purchase Card Program Management Office, must establish controls to ensure proper management and use of the purchase card program in accordance with DoD and Component guidance. See the Findings section of the report for the detailed recommendations.
DOD's High-Risk Areas: Progress Made Implementing Supply Chain
Management Recommendations, but Full Extent of Improvement Unknown.
GAO-07-234, January 17, 2007.
What GAO Recommends:
GAO recommends that DOD complete its logistics strategy and develop and implement outcome-focused performance metrics and cost metrics for supply chain management. DOD concurred with GAO’s recommendations.
Highlights
DOD-
Office of the Inspector General -- Audit
Controls Over the Army, Navy, and Air Force Purchase Card Programs - Report No. D-2007-043 (PDF) - Project No. D2005-D000CK-0202.000, January 10, 2007.
Results Purchase card program officials failed to establish effective controls over the accounts of closed purchase cards with credit balances at three Army installations, three Navy installations, and two Air Force installations. For the installations reviewed, two Army, three Navy, and two Air Force agency/organization program coordinators did not monitor closed accounts that had credit balances. Also, Army, Navy, and Air Force purchase card program officials did not retain cardholder documentation for closed accounts. As a result, credit balances on closed accounts of purchase cards may not be properly identified, refunded, and available for Government use (finding A).
Controls over the use of convenience checks were weak and program officials did not establish an effective oversight program at Army, Navy, and Air Force installations visited. Specifically, Army, Navy, and Air Force officials did not issue delegation of authority letters to convenience check writers, review the program, or conduct unannounced audits of convenience check accounts. Further, Army and Air Force approving officials did not retain documentation when checks were used. As a result, convenience checks are vulnerable to unnecessary risk and misuse (finding B).
Controls over the purchase card programs at Air Force installations visited were inadequate, and program oversight was weak. In addition, controls over purchase card program training were weak at two of the three Navy installations visited. Specifically, Navy and Air Force cardholders and approving officials did not receive required initial purchase card training or the refresher purchase card training; Air Force agency/organization program coordinators and approving officials had more than the standard span of control for purchase card accounts; and Air Force agency/organization program coordinators were purchase cardholders and convenience check writers. Unless purchase card program management officials strengthen internal controls and program oversight, the Navy and Air Force cannot ensure continuous program improvement and risk mitigation necessary to prevent fraud, waste, or mismanagement (finding C).
The Director, Army Purchase Card Program Management Office; the Director of the Department of the Navy, Consolidated Card Program Management Division; and the Director, Air Force Purchase Card Program Management Office, must establish controls to ensure proper management and use of the purchase card program in accordance with DoD and Component guidance. See the Findings section of the report for the detailed recommendations.
Defense Contracting: Questions for the Record. GAO-07-217R, December 21, 2006. Comptroller General David Walker responds to a number of post-hearing questions relating to various issues, including measures that DOD can employ to ensure better contracting outcomes.
Export Controls: Challenges Exist in Enforcement of an Inherently
Complex System. GAO-07-265, December 20, 2006.
Why GAO Did This Study Each year, billions of dollars in dual-use itemsitems that have both commercial and military applicationsas well as defense items are exported from the United States. To protect U.S. interests, the U.S. government controls the export of these items. A key function in the U.S. export control system is enforcement, which aims to prevent or deter the illegal export of controlled items.
Highlights
Military Operations: High-Level DOD Action Needed to Address
Long-standing Problems with Management and Oversight of Contractors
Supporting Deployed Forces. GAO-07-145, December 18, 2006.
What GAO Found: DOD continues to face long-standing problems that hinder its management and oversight of contractors at deployed locations. DOD has taken some steps to improve its guidance on the use of contractors to support deployed forces, addressing some of the problems GAO has raised since the mid-1990s. However, while the Office of the Secretary of Defense is responsible for monitoring and managing the implementation of this guidance, it has not allocated the organizational resources and accountability to focus on issues regarding contractor support to deployed forces. Also, while DOD’s new guidance is a noteworthy step, a number of problems we have previously reported on continue to pose difficulties for military personnel in deployed locations.
Highlights
Defense Acquisitions: Challenges Remain in Developing Capabilities
for Naval Surface Fire Support. GAO-07-115, November 30, 2006.
What GAO Recommends
GAO recommends that the Department of Defense clarify requirements for volume of fire, clarify Navy and Marine Corps roles in managing resources, comprehensively review the Extended Range Munition program, and assign responsibility for assessing the gap in command and control. DOD concurred with the first and third recommendations, and partially concurred with the others.
Highlights
Commerce Issues Clause for Contract Performance During Pandemic Influenza Outbreak, SARS Outbreak, or Other Biomedical Emergency or Catastrophe, Procurement Memorandum 2007-01, Michael S. Sade - Director for Acquisition Management and Procurement Executive, October 05, 2006.
Small Business Innovation Research: Agencies Need to Strengthen
Efforts to Improve the Completeness, Consistency, and Accuracy of Awards
Data. GAO-07-38, October 19, 2006.
Why GAO Did This Study: The Small Business Innovation Research (SBIR) program was created to increase the use of small businesses to meet federal research needs and commercialize the results of this research. To monitor the program, the Small Business Administration (SBA) requires participating agencies to provide, in a standard format, specific data on all SBIR awards they make. SBA then compiles these data into a database known as Tech-Net. Congress also required SBA to create, by 2001, a restricted and more comprehensive database that would provide information for government agencies to use in evaluating the program. GAO was asked to identify the (1) types of data that agencies report to SBA for inclusion in the Tech-Net database, (2) extent to which these data are provided in a standard format, (3) extent to which SBA has established the government-use database, and (4) extent to which SBIR agencies have developed and implemented techniques to track commercialization of SBIR projects. GAO reviewed 8 of the 11 agencies participating in SBIR.
Highlights
Space Acquisitions: DOD Needs to Take More Action to Address
Unrealistic Initial Cost Estimates of Space Systems. GAO-07-96,
November 17, 2006.
Why GAO Did This Study
Estimated costs for the Department of Defense’s (DOD) major space acquisition programs have increased by about $12.2 billion from initial estimates for fiscal years 2006 through 2011. Cost growth for ongoing Air Force programs above initial estimates accounts for a substantial portion of this 44 percent increase. In light
of the role that optimistic estimating is believed to have played in exacerbating space acquisition cost growth, you requested that we examine (1) in what areas space system acquisition cost estimates have been unrealistic and (2) what incentives and pressures have contributed to the quality and usefulness of cost estimates for space system acquisitions.
Highlights
Defense Acquisitions: Tailored Approach Needed to Improve Service
Acquisition Outcomes. GAO-07-20, November 9, 2006.
What GAO Found: Several key factors are necessary to improve DOD’s service acquisition outcomes—that is, obtaining the right service, at the right price, in the right manner. These factors can be found at both the strategic and the transactional levels and should be used together as a comprehensive, but tailored approach to managing service acquisition outcomes. At the strategic level, key success factors include (1) strong leadership that defines a corporate vision and normative goals; (2) sustained, results-oriented communication and metrics; (3) defined responsibilities and associated support structures; and (4) increased knowledge and focus on spending and data trends. The strategic level also sets the context for the transactional level, where the focus is on making sound decisions on individual transactions. Success factors at this level include having (1) valid and well-defined requirements; (2) properly structured business arrangements; and (3) proactively managed outcomes.
Highlights
GSA-The Establishment of The
Civilian Board of Contract Appeals and the Termination of The Boards of
Contract Appeals of the General Services Administration and the
Departments of Agriculture, Energy, Housing and Urban Development,
Interior, Labor, Transportation, and Veterans Affairs, 71 Fed. Reg.
65825, November 09, 2006.
SUMMARY: In section 847 of the
National Defense Authorization Act for Fiscal Year 2006, Pub. L. No.
109-163, Congress established the Civilian Board of Contract Appeals
(CBCA) within GSA to hear and decide contract disputes involving
executive agencies (other than the Department of Defense, the Department
of the Army, the Department of the Navy, the Department of the Air
Force, the National Aeronautics and Space Administration, the United
States Postal Service, the Postal Rate Commission, and the Tennessee
Valley Authority) under the provisions of the Contract Disputes Act of
1978 and regulations and rules issued thereunder. Boards of contract
appeals currently exist at the General Services Administration and the
departments of Agriculture, Energy, Housing and Urban Development,
Interior, Labor, Transportation, and Veterans Affairs. Effective January
6, 2007, all of those boards in existence on that date will terminate,
and their cases, Board judges, and other personnel will transfer to the
new Civilian Board.
Army Procurement Fraud Advisor’s Newsletter, Update 63, October 2006
Snowe Calls For GSA To Set Aside $500 Million Contract to Small Firms in Distressed Areas Cites Small Business Job Impact, Potential Legal Violations, Letter to GSA Administrator Doan from Senator Snowe, October 25, 2006.
Review of Administrative Task Orders for Iraq Reconstruction Contracts (SDIGR 06-028), October 23, 2006. Special Inspector General for Iraq Reconstruction.[Are administrative task orders commonly used by other agencies?-jaw]
Rebuilding Iraq: Status of Competition for Iraq Reconstruction
Contracts. GAO-07-40, October 6, 2006
What GAO Found:
While no single, comprehensive system currently tracks governmentwide Iraq reconstruction contract data, available data showed that from October 1, 2003, through March 31, 2006, DOD, USAID, and State collectively awarded the majority of Iraq reconstruction contracts competitively. Based on competition information we obtained on $10 billion of the total $11.6 billion in IRRF obligations by these agencies during the period of our review, we found that about $9.1 billion-or 91 percent-was for competitively awarded contracts. While our ability to obtain complete competition data for all DOD Iraq reconstruction contract actions was limited because not all DOD components consistently tracked or fully reported this information, we obtained information on approximately $7 billion, or 82 percent, of DOD’s total Iraq reconstruction contract obligations, and of this, we found that competition occurred for nearly all of the obligations. Additionally, based on complete data for the period of our review we found that USAID competitively awarded contract actions for 99 percent of its obligations, while State awarded contract actions competitively for only 10 percent of its obligations.
Highlights
Highlights of a GAO Forum: Federal Acquisition Challenges and
Opportunities in the 21st Century. GAO-07-45SP, October 2006
Why GAO Convened this Forum: Acquisition of products and services from contractors consumes about a quarter of discretionary spending governmentwide and is a key function in many federal agencies. In fiscal year 2005 alone, federal government contracting involved over $388 billion. The work of the government is increasingly being performed by contractors, including in emergency and large-scale logistics operations such as hurricane response and recovery and the war in Iraq.
Highlights
Ethics and Working with Contractors-Questions and Answers, A memorandum and Questions and Answers paper by Robert I. Cusick, Director, Office of Government Ethics. Questions and Answer paper.
Purchase Cards: Control Weaknesses Leave DHS Highly Vulnerable to
Fraudulent, Improper, and Abusive Activity. GAO-06-1117, September 28, 2006.
What GAO Found: A weak control environment and breakdowns in key controls exposed DHS to fraud and abuse in its use of the purchase card. While DHS’s draft Purchase Card Manual generally contained effective control procedures, it was not finalized due to a lack of leadership by the Chief Financial Officer in resolving disagreements over its implementation. This led to DHS cardholders following different procedures. Inadequate staffing, insufficient training, and ineffective monitoring, along with inconsistent purchase card policies contributed to a weak control environment and breakdowns in specific key controls. GAO and DHS OIG found a lack of documentation that key purchase card internal controls were performed. Based on a statistical sample, GAO and DHS OIG estimated that 45 percent of DHS’s purchase card transactions were not properly authorized, 63 percent did not have evidence that the goods or services were received, and 53 percent did not give priority to designated procurement sources. GAO and DHS OIG also found cardholders who failed to dispute improper charges, which resulted in losses to the federal government. Because of the urgent needs caused by the hurricanes, DHS made a number of noncompetitive purchase card acquisitions. GAO recognizes that DHS had the auth had the authority to make noncompetitive purchases; however, GAO found transactions where DHS cardholders could have exercised greater prudence without jeopardizing relief efforts.
Highlights
Interagency Contracting: Improved Guidance, Planning, and
Oversight Would Enable the Department of Homeland Security to Address
Risks. GAO-06-996, September 27, 2006.
What GAO Recommends
GAO recommends that the Secretary of Homeland Security consider the adequacy of the Office of the Chief Procurement Officer’s resources and develop guidance and training; establish criteria to consider in the decision to use an interagency contract; and implement oversight to evaluate the outcomes of interagency contracts. DHS agreed with these recommendations. In addition, Congress should require the Secretary to report on efforts to provide the Chief Procurement Officer with sufficient authority.
Highlights
Iraq Contract Costs: DOD Consideration of Defense Contract Audit
Agency's Findings. GAO-06-1132, September 25, 2006.
What GAO Found-
Defense Contract Audit Agency audit reports issued between February 2003 and February 2006 identified $2.1 billion in questioned costs and $1.4 billion in unsupported costs on Iraq contracts. DCAA defines questioned costs as costs that are unacceptable for negotiating reasonable contract prices, and unsupported costs as costs for which the contractor has not provided sufficient documentation. This information is provided to DOD for its negotiations with contractors. Based on information provided by DCAA, DOD contracting officials have taken actions to address $1.4 billion in questioned costs. As a result, DOD contracting officials negotiated contract cost reductions of $386 million according to DCAA. Based on the information provided by DCAA, as of July 2006, the remaining $700 million in questioned costs is still in process. Because unsupported costs indicate a lack of contractor information that is needed to assess costs, DCAA cannot and does not render an opinion on those costs. Therefore, DCAA does not track the resolution of unsupported costs.
Highlights
Federal Funding Accountability Transparency Act, S. 2590, In a surprise move, Congress has passed new legislation, the Federal Funding Accountability Transparency Act, S. 2590, which requires the Office of Management and Budget to publish information on all federal awards and grants over $25,000. The new legislation, passed while the Jack Abramoff scandal continues to pour bad news on Capitol Hill, offers a welcome beam of hope for procurement reform.(Introductory paragraph of an article By Christopher Yukins, associate professor of Government contract law and co-director of the Government Procurement Law Program at The George Washington University Law School in the September 20, 2006 issue of Government Contractor, a Thomson/West publication.)
Defense Acquisitions: Restructured JTRS Program Reduces Risk, but
Significant Challenges Remain. GAO-06-955, September 11,. 2006.
What GAO Found
The proposed JTRS restructuring-a plan DOD approved in March 2006-
appears to address and reduce program risks that GAO and others have
documented in recent years. While still meeting key requirements, including
those related to DOD’s network centric transformation effort, the revised
approach is expected to develop and field capabilities in increments rather
than attempting to develop and field the capabilities all at once. Costly and
non-transformational requirements will be deferred to later increments.
Deferring these requirements will allow more time to mature critical
technologies, integrate components, and test the radio system before
committing to production. JTRS program management has also been
strengthened through the establishment of a Joint Program Executive Office
(JPEO). The more centralized management structure should help the
program improve oversight and coordination of standards, system
engineering, and development of the radios.
Highlights
Defense
Acquisitions: DOD Needs to Establish an Implementing Directive to
Publish Information and Take Actions to Improve DOD Information on
Critical Acquisition Positions. GAO-06-987R, September 8, 2006.
DOD Acquisitions: Contracting for Better Outcomes, by David M.
Walker, Comptroller General of the United States, before the
Subcommittee on Defense, House Committee on Appropriations.
GAO-06-800T, September 7, 2006.
SUMMARY: In this testimony, GAO discusses (1) recent trends in DOD contracting activity and the environment in which this activity takes place, and (2) practices which undermine its ability to establish sound business arrangements, particularly those involving the selection and oversight of DOD’s contractors and incentivizing their performance.
This statement is based on work GAO has completed over the past 6 years covering a range of DOD acquisition and contracting issues. Some of these issues are long-standing. GAO has identified DOD contract management as a high-risk area for more than decade. With awards to contractors large and growing, DOD will continue to be vulnerable to contracting fraud, waste or misuse of taxpayer dollars, and abuse.
Highlights
OMB Letter to Senator Snowe, August 03, 2006. Letter sets out Administration plans to address contract bundling issues.
Iraq Reconstruction Lessons in Contracting and Procurement, July 2006. 140 page report by the Special Inspector General for Iraq Reconstruction
DOE Contracting: Better Performance Measures and Management Needed to Address Delays in Awarding Contracts. GAO-06-722, June 30, 2006.
What GAO Recommends: GAO recommends that DOE (1) develop more accurate and comprehensive performance measures for the timeliness of its contract awards and (2) establish a consistent system for identifying and sharing lessons learned and best practices on contract awards.
In commenting on the report, DOE generally agreed with the recommendations but raised concerns about GAO’s sampling methodology, as well as GAO’s characterization of late contract awards as delayed and DOE’s performance measures as incomplete. GAO believes that the methodology and conclusions are correct.
Highlights
Purchase Cards: Control Weaknesses Leave DHS Highly Vulnerable to Fraudulent, Improper, and Abusive Activity, by Gregory D. Kutz, managing director, forensic audits and special investigations, before the Senate Committee on Homeland Security and Governmental Affairs.GAO-06-957T, July 19, 2006.
What GAO Found: A weak control environment and breakdowns in key controls exposed DHS to fraud and abuse in its use of the purchase card. While DHS’s draft Purchase Card Manual generally contained effective control procedures, it was not finalized due to a lack of leadership by the CFO in resolving disagreements over its implementation. This led to DHS cardholders not following the same procedures. Inadequate staffing, insufficient training, and ineffective monitoring also contributed to the weak control environment. The weak control environment and inconsistent purchase card policies contributed to breakdowns in specific key controls. GAO and DHS OIG found a lack of documentation that key purchase card internal controls were performed. Based on a statistical sample, GAO and DHS OIG estimated that 45 percent of DHS’s purchase card transactions were not properly authorized, 63 percent did not have evidence that the goods or services were received, and 53 percent did not give priority to designated sources. GAO and DHS OIG also found cardholders who failed to dispute improper transactions, which resulted in losses to the federal government. Because of the urgent needs caused by the hurricanes, DHS made a number of noncompetitive purchase card acquisitions. GAO recognizes that DHS had the authority to make noncompetitive purchases; however, GAO found transactions where DHS cardholders could have exercised greater prudence without jeopardizing relief efforts.
Highlights
NOAA: Next Steps to
Strengthen Its Acquisition Function. GAO-06-594, June 7,
2006.
What GAO Recommends: GAO recommends establishment of
policies for using a knowledge-based approach for complex developmental
acquisitions and other actions to strengthen oversight of NOAA
contracting activities and build capacity of NOAA’s contracting
workforce to address the agency’s retirement challenges. After reviewing
a draft of this report, Commerce concurred with our findings and
recommendations.
Highlights
Defense
Acquisitions: Further Management and Oversight Changes Needed for
Efforts to Modernize Cheyenne Mountain Attack Warning Systems.
GAO-06-666, July 6, 2006.
What GAO Recommends:GAO is
recommending that DOD designate CCIC2S as a major acquisition program;
establish effective management controls; conduct an affordability
assessment, economic analysis, and independent estimate of cycle costs.
DOD agreed to designate CCIC2S as a major acquisition program and
establish management controls. In addition, DOD stated that it will
conduct affordability assessment and analyses on future CCIC2S
development activities.
Highlights
Department of Energy, Office of Worker Advocacy: Deficient Controls Led to Millions of Dollars in Improper and Questionable Payments to Contractors. GAO-06-547, May 31, 2006.
Why GAO Did This Study: The Energy Employees Occupational Illness Compensation Program Act of 2000 (EEOICPA) authorized the Department of Energy (Energy) to help its former contractor employees file state workers’ compensation claims for illnesses that could be linked to exposure to toxic substances during their employment. Concerned with the relatively small number of finalized cases and the overall effectiveness of the program, Congress asked GAO to review costs incurred by Energy to administer the program. Specifically, Congress asked GAO to determine whether (1) internal controls over program payments were adequately designed to provide reasonable assurance that improper payments to contractors would not be made or would be detected in the normal course of business and (2) program payments were properly supported as a valid use of government funds.
Highlights
OMB-Notification of Upcoming
Meetings of the Acquisition Advisory Panel, 71 Fed. Reg. 36568, June
27, 2006.
SUMMARY: The Office of Management and Budget
announces one meeting of the Acquisition Advisory Panel (AAP or
“Panel”) established in accordance with the Services
Acquisition Reform Act of 2003.
DATES: There is one meeting
announced in this Federal Register Notice. A public meeting of the Panel
will be held on July 12, 2006 beginning at 9 a.m. Eastern Time and
ending no later than 5 p.m. There are additional public meetings of the
Acquisition Advisory Panel for June and July 2006 previously published
in the Federal Register. For a schedule of all public meetings, visit http://
acquisition.gov/comp/aap/index.html and select the link called
“Schedule.”
ADDRESSES: The July 12th meeting
will be held at the new FDIC Building, 3501 N. Fairfax Drive, Arlington,
VA in the new auditorium Room C3050D. This facility is 1/4 block off of
the orange line metro stop for Virginia Square. The public is asked to
pre-register one week in advance of the meeting due to security and/or
seating limitations (see below for information on preregistration).
Alaska
Native Corporations: Increased Use of Special 8(a) Provisions Calls for
Tailored Oversight, by David E. Cooper, director, acquisition and
sourcing management, before a joint hearing of the House Committee on
Small Business and the Committee on Government Reform. GAO-06-874T,
June 21, 2006.
Why GAO Did This Study: Alaska Native
corporations (ANC) were created to settle land claims with Alaska
Natives and foster economic development. In 1986, legislation passed
that allowed ANCs to participate in the Small Business Administration’s
(SBA) 8(a) program. Since then, Congress has extended special
procurement advantages to 8(a) ANC firms, such as the ability to receive
sole-source contracts for any dollar amount and to own multiple
subsidiaries in the 8(a) program. We were asked to testify on an earlier
report where we identified (1) trends in the government’s 8(a)
contracting with ANC firms, (2) the reasons agencies have awarded 8(a)
solesource contracts to ANC firms and the facts and circumstances behind
some of these contracts, and (3) how ANCs are using the 8(a) program.
GAO also evaluated SBA’s oversight of 8(a) ANC firms.
Highlights
Defense Management: Attention Is Needed to Improve Oversight of DLA Prime Vendor Program. GAO-06-739R, June 19, 2006.
Results in Brief: Personnel at the Defense Supply Center
Philadelphia did not always conduct pricing reviews for all commodities.
The medical materiel and food subsistence commodities’ contracting
personnel reviewed pricing on a regular basis. However, required price
reviews were not being conducted for the food service equipment and
construction and equipment commodities. For example, the contracts for
food service equipment required verification of price increases, but
officials from the supply center were unable to provide documentation on
why the price of an aircraft refrigerator increased from $13,825 in
March 2002 to $32,642 in September 2004. Both logistics agency and
supply center officials acknowledged that these problems occurred
because management at the agency and supply center level were not
providing adequate oversight to ensure that contracting personnel were
monitoring prices. The lack of pricing reviews on certain commodities
has been a continual problem cited in the logistics agency’s internal
reviews since 2002. Internal reviews of the prime vendor programs
conducted in 2002 and 2003 showed that supply center contracting
personnel responsible for the food service equipment and construction
and equipment commodities failed at times to properly perform price
reviews to determine whether the prices charged by the prime vendors
were reasonable. The internal reviews found that contracting personnel
either did not have knowledge of, or were disregarding contracting rules
and regulations with regard to price reviews. As a result, the internal
reviews recommended stronger contract management and oversight to ensure
that price reviews were conducted. Management at the supply center
agreed to take corrective actions to address the 2002 and 2003 reviews.
However, issues with the lack of pricing oversight were identified again
in a 2005 internal review.
Commerce Information Technology Solutions Next Generation Governmentwide Acquisition Contract. GAO-06-791R, June 14, 2006.
Objectives
• Concerns have been raised about the fairness of the “bid down” approach of the
Department of Commerce’s Information Technology Solutions Next Generation
(COMMITS NexGen) contract because it permits incumbent contractors to
compete against smaller firms. In response to these concerns, the fiscal year
2006 Science, the Departments of State, Justice, and Commerce, and Related
Agencies appropriations conference report requested our review of the
COMMITS NexGen governmentwide acquisition contract. Specifically, we
examined:
• how the COMMITS NexGen contract is structured to meet its intended
goals;
• what effect the tier system has on the task order competiton process; and
• what oversight and internal control procedures Commerce has implemented
to address the risks of interagency contracting.
OMB-Acquisition Advisory Panel; Notification of Upcoming Meetings of
the Acquisition Advisory Panel, 71 Fed. Reg. 34397, June 14, 2006.
SUMMARY: The Office of Management and Budget
announces two meetings of the Acquisition Advisory Panel (AAP or
“Panel”) established in accordance with the Services
Acquisition Reform Act of
2003.
DATES: There are two meetings announced in this Federal
Register Notice. Public meetings of the Panel will be held on June 29th
and July 14th 2006. These meetings are in addition to those already
announced for June and July in the Federal Register at 71 FR 25613. All
meetings will begin at 9 a.m. Eastern Time and end no later than 5 p.m.
For a schedule of all confirmed meetings, please visit the Panel’s Web
site at http://acquisition.gov/comp/aap/ index.html and select the link
for “Schedule.”
ADDRESSES: The June 29th meeting
will be held at the General Services Administration (GSA) Auditorium at
1800 F Street, NW., Washington, DC 20405. The July 14th meeting will be
held at a different facility, the General Services Administration
Auditorium at 7th and D Streets, SW., Washington, DC (there is no
building number but the address is 301 7th Street, SW.). This facility
is across the street from the LEnfant Plaza metro stop. Enter the
building through the middle entrance on D Street. You must have a photo
identification to gain access to both these facilities. The public must
preregister one week in advance for all meetings due to security and/or
seating limitations (see below for information on pre-registration).
United States Coast Guard: Improvements Needed in Management and Oversight of Rescue System Acquisition. GAO-06-623, May 31, 2006.
Why GAO Did This Study: Search and rescue—one of the United States Coast Guard’s (USCG) oldest missions and highest priorities—involves minimizing loss of life, injury, and property damage by aiding people and boats in distress. In September 2002, USCG contracted to replace its search and rescue communications system-installed in the 1970s-with a new system known as Rescue 21. However, the acquisition and initial implementation of Rescue 21 has resulted in significant cost overruns and schedule delays.Highlights
2010 Census: Census Bureau Generally Follows Selected Leading Acquisition Planning Practices, but Continued Management Attention Is Needed to Help Ensure Success, GAO-06-277, May 18, 2006.
Why GAO Did This Study For the 2010 Census, the U.S. Census Bureau (Bureau) is making the most extensive use of contractors in its history to supply a number of mission-critical functions and technologies. Because of the critical role that contractors will play in the 2010 Census, GAO reviewed the Bureau’s acquisition planning process. Specifically GAO’s objectives were to (1) determine the status of the Bureau’s major decennial contracts, and (2) evaluate the extent to which the Bureau is using selected leading practices to manage its acquisition planning for these contracts.
Highlights
Sarbanes-Oxley Act:
Consideration of Key Principles Needed in Addressing Implementation for
Smaller Public Companies, GAO-06-361, April 13, 2006.
Why GAO
Did This Study: Congress passed the Sarbanes-Oxley Act to help
protect investors and restore investor confidence. While the act has
generally been recognized as important and necessary, some concerns have
been expressed about the cost for small businesses. In this report, GAO
(1) analyzes the impact of the Sarbanes-Oxley Act on smaller public
companies, particularly in terms of compliance costs; (2) describes
responses of the Securities and Exchange Commission (SEC) and Public
Company Accounting Oversight Board (PCAOB) to concerns raised by smaller
public companies; and (3) analyzes smaller public companies’ access to
auditing services and the extent to which the share of public companies
audited by mid-sized and small accounting firms has changed since the
act was passed.
Highlights
Hurricane Katrina: Improving Federal Contracting Practices in Disaster Recovery Operations, by William T. Woods, director, acquisition sourcing and management, before the House Committee on Government Reform. GAO-06-714T, May 4, 2006.
Why GAO Did This Study: The devastation experienced throughout the Gulf Coast region in the wake of Hurricanes Katrina and Rita has called into question the government’s ability to effectively respond to such disasters. The government needs to understand what went right and what went wrong, and to apply these lessons to strengthen its disaster response and recovery operations.
Highlights
OFPP-Determination of Executive
Compensation Benchmark Amount, 71 Fed. Reg. 26114, May 03, 2006.
SUMMARY: The Office of Management and Budget (OMB) is
hereby publishing the attached memorandum to the heads of executive
departments and agencies concerning the determination of the maximum
benchmark compensation amount that will be allowable under government
contracts during contractors FY 2006$546,689. This determination is
required under Section 39 of the Office of Federal Procurement Policy
(OFPP) Act (41 U.S.C. 435), as amended. The benchmark compensation
amount applies equally to both defense and civilian procurement
agencies.
OMB-Acquisition Advisory Panel; Notification of
Upcoming Meetings of the Acquisition Advisory Panel, 71 Fed. Reg.
25613, May 01, 2006.
SUMMARY: The Office of Management
and Budget announces five meetings of the Acquisition Advisory Panel
(AAP or “Panel”) established in accordance with the Services
Acquisition Reform Act of 2003.
DATES: There are five
meetings announced in this Federal Register Notice. Public meetings of
the Panel will be held on May 18th, May 31st, June 14th, July 7th and
July 21st 2006. All meetings will begin at 9 a.m. Eastern Time and end
no later than 5 p.m.
ADDRESSES: Except for the July 7th
meeting, all public meetings will be held at the Small Business
Administration (SBA), 409 Third Street, SW., Washington, DC, 2nd Floor
Eisenhower Conference Room (Metro stop at building: Federal Center
Southwest, Orange or Blue Lines). The July 7th meeting will be held at
the new FDIC Building, 3501 N. Fairfax Drive, Arlington, VA 22226, Room
203. This facility is a quarter of a block off of the Orange Line metro
stop for Virginia Square. The public must pre-register one week in
advance for all meetings due to security and/or seating limitations (see
below for information on pre-registration).
Military Housing: Management Issues Require Attention as the Privatization Program Matures. GAO-06-438, April 28, 2006.
Why GAO Did This Study: The Department of Defense (DOD) intends to privatize about 87 percent of the military-owned housing in the United States by 2010. As of December 2005, it had awarded 52 projects to privatize over 112,000 family housing units and had plans to award 57 more projects to privatize over 76,000 more units over the next 4 years. The program, begun in 1996, has become DOD’s primary means to improve family housing and to meet its housing needs when communities near installations do not have enough suitable, affordable housing.
Because of expressed interest related to the oversight responsibilities of several committees, GAO assessed (1) whether opportunities exist to improve DOD’s oversight of awarded housing privatization projects, and (2) to what extent projects are meeting occupancy expectations.
Highlights
Contract Management: Increased Use of Alaska Native Corporations' Special 8(a) Provisions Calls for Tailored Oversight, GAO-06-399, April 26, 2006.
What GAO Recommends:
GAO recommends that SBA take actions to improve oversight of ANC 8(a) activity and recommends that the seven procuring agencies in this review provide guidance to contracting officers. GAO received comments on the draft report from all 8 agencies in the review and the Native American Contractors Association. The procuring agencies agreed with the recommendation, except for the Department of Energy which did not address it. SBA expressed concern with aspects of the report and, in a subsequent e-mail, disagreed with several of our recommendations. GAO disagrees with SBA’s comments and believes its recommendations need to be implemented.
Highlights
Defense Acquisitions: Major Weapon Systems Continue to Experience Cost and Schedule Problems Under DOD's Revised Policy. GAO-06-368, April 14, 2006.
What GAO Found: Changes made in DOD’s acquisition policy over the past 5 years have not eliminated cost and schedule problems for major weapons development programs. Of the 23 major programs we assessed, 10 are already expecting development cost overruns greater than 30 percent or have delayed the delivery of initial operational capability to the warfighter by at least 1 year. The overall impact of these costly conditions is a reduction in the value of DOD’s defense dollars and a lower return on investment.
Highlights
DOE Contracting: Improved Program Management Could Help Achieve Small Business Goal, GAO-06-501, April 7, 2006.
What GAO Found: Key DOE efforts to increase small business prime contracting have included identifying more contracting opportunities for small businesses, expanding small business development and outreach activities, and increasing program management and oversight. The department has had some success in redirecting to small businesses portions of contracts to manage large DOE facilities, as well as in securing additional small business prime contracting opportunities from the department’s other contracts. As a result, the total dollars awarded annually as prime contracts to small businesses have increased, and the share of procurement dollars awarded to small business in 2005 was DOE’s second highest ever. Despite these gains, however, DOE was unable to meet its small business prime contracting goal in 4 of the past 5 years (see table below).
Highlights
Contract Security Guards: Army’s Guard Program Requires Greater Oversight and Reassessment of Acquisition Approach. GAO-06-284, April 3, 2006.
What GAO Found: The Army’s three-phased approach for acquiring contract security guards has relied heavily on sole-source contracts, despite the Army’s recognition early on that it was paying considerably more for its sole-source contracts than for those awarded competitively. The Army has devoted twice as many contract dollars-nearly $495 million-to its sole-source contracts as to its competed contracts and has placed contract security guards at 46 out of 57 installations through sole-sourcing. These sole-source contracts were awarded to two Alaska Native corporation firms under the Small Business Administration’s 8(a) Business Development Program. Congress has provided these firms with special advantages in the 8(a) program. During initial planning, the Army worked with a contractor who had not performed guard services before to refine the contract performance work statement. Highlights
Defense Acquisitions: Assessments of Selected Major Weapon Programs GAO-06-391, March 31, 2006.
What GAO Found: GAO assessed 52 systems that represent an investment of over $850 billion, ranging from the Missile Defense Agency’s Airborne Laser to the Army’s Warfighter Information Network-Tactical. DOD often exceeds development cost estimates by approximately 30 to 40 percent and experiences cuts in planned quantities, missed deadlines, and performance shortfalls. Such difficulties, absent definitive and effective reform outcomes, are likely to cause great turmoil in a budget environment in which there are growing fiscal imbalances as well as increasing conflict over increasingly limited resources. While these problems are in themselves complex, they are heightened by the fact that this current level of investment is by no means final and unchangeable. A large number of the technologies under development in these systems are sufficiently new and immature that it is uncertain how long it will take or how much it will cost to make them operational.
Highlights
Offshoring in Six Human Service Programs: Offshoring Occurs in Most States, Primarily in Customer Service and Software Development. GAO-06-342, March 28, 2006.
What GAO Found: Some work is performed offshore in the majority of states for the four state-administered programs we reviewed, but no work is performed offshore for the two federally-administered student aid programs. Offshoring occurred in one or more programs in 43 of 50 states and the District of Columbia, most frequently in the Food Stamp and TANF programs. However, expenditures for services performed offshore in the four state-administered programs appear to be relatively small. The services states most frequently reported as being performed offshore in the Food Stamp and TANF programs were functions related to customer service, such as call centers, and in the Unemployment Insurance and Child Support Enforcement programs functions were related to software development. India was the most prevalent offshore location, followed by Mexico. We did not find any occurrences of offshoring in the Pell Grant and FFEL programs and the Department of Education's U.S. residency requirement for contractors performing high-risk work has the effect of limiting offshoring.
Highlights -
Agency Management of Contractors Responding to Hurricanes Katrina and Rita, GAO-06-461R, March 15, 2006.
Summary of Findings
Given the environment in which they were operating, agency acquisition and contractor personnel have been recognized for their hard work in providing the goods and services required to be responsive. The response efforts nonetheless suffered from:
• Inadequate planning and preparation to anticipate requirements for needed goods and services.
• Lack of clearly communicated responsibilities across agencies and jurisdictions.
• Insufficient numbers and inadequate deployment of personnel to provide for effective contractor oversight.
Space Acquisitions: DOD Needs a Departmentwide Strategy for Pursuing Low-Cost Responsive Tactical Space Capabilities. GAO-06-449, March 14, 2006.
What GAO Found: Through effective management of requirements and technologies and strong leadership, DOD was able to deliver the first TacSat satellite in 12 months and for less than $10 million. The Office of Force Transformation, TacSat 1's sponsor, set requirements early in the satellite's development process and kept them stable. DOD modified existing technologies for use in space, significantly reducing the likelihood of encountering unforeseen problems that could result in costly design changes. The satellite was also built within DOD's science and technology environment, which enabled service laboratory scientists to address problems quickly, inexpensively, and innovatively. The vision and support provided by leadership were also key to achieving the successful delivery of TacSat 1. DOD has also made progress in developing three additional TacSats and is working toward developing a low-cost launch vehicle available on demand.
Highlights
Unmanned Aerial Systems: New DOD Programs Can Learn from Past Efforts to Craft Better and Less Risky Acquisition Strategies. GAO-06-447, March 15, 2006.
What GAO Found:
While the Global Hawk and Predator both began as successful
demonstration programs, they adopted different acquisition strategies that
have led to different outcomes. With substantial overlap in development,
testing, and production, the Global Hawk program has experienced serious
cost, schedule, and performance problems. As a result, since the approved
start of system development, planned quantities of the Global Hawk have
decreased 19 percent, and acquisition unit costs have increased 75 percent.
In contrast, the Predator program adopted a more structured acquisition
strategy that uses an incremental, or evolutionary, approach to
development-an approach more consistent with DOD's revised acquisition
policy preferences and commercial best practices. While the Predator
program has experienced some problems, the program's cost growth and
schedule delays have been relatively minor, and testing of prototypes in
operational environments has already begun.
Highlights
Defense Acquisitions: Initial Missile Defense Capability Shows Knowledge-Based Acquisition Strategy Is Needed. GAO-06-327, March 15 2006.
What GAO Found: MDA made good progress during fiscal year 2005 in the development and fielding of two of the seven elements reviewed. Most of the others encountered problems that slowed progress. Meanwhile, contractors for the seven elements exceeded their fiscal year budget by about $458 million, or about 14 percent, most of which was attributable to cost overruns in developing the Ground-based Midcourse Defense (GMD) element
Highlights
Defense Acquisitions: Improved Business Case Needed for Future Combat System's Successful Outcome. GAO-06-367, March 14, 2006.
What GAO Found:
The FCS entered the development phase in 2003 and has not yet reached the
level of knowledge it should have attained in the pre-development stage. The
elements of a sound business case-firm requirements, mature technologies,
a knowledge-based acquisition strategy, a realistic cost estimate, and
sufficient funding-are still not demonstrably present. The Army will
continue building basic knowledge in areas such as requirements and
technologies for several more years.
Highlights
OMB-Acquisition Advisory Panel; Notification of
Upcoming Meetings of the Acquisition Advisory Panel, 71 Fed. Reg.
12717, March 13, 2006.
SUMMARY: The Office of Management
and Budget announces two meetings of the Acquisition Advisory Panel (AAP
or “Panel”) established in accordance with the Services
Acquisition Reform Act of 2003.
DATES: There are two
meetings announced in this Federal Register notice. Public meetings of
the Panel will be held on March 29th, 2006 and April 21, 2006, both
beginning at 10 a.m. eastern standard time and ending no later than 5
p.m.
ADDRESSES: Both public meetings will be held at the
White House Conference Center, Truman Room, 726 Jackson Place, NW.,
Washington, DC 20503. The public is asked to pre-register one week in
advance for both meetings due to security and/or seating limitations
(see below for information on preregistration).
Postal Service Agrees to Establish Goals for Small, Minority-Owned and Women-Owned Businesses Beginning in FY 2007, February 28, 2006 Letter to Senator Snowe.
GAO-Publication of Volume II of GAO’s Principles of Federal
Appropriations, 71 Fed. Reg. 12199, March 09, 2006.
SUMMARY: The third edition of Volume II of GAO’s Principles of Federal
Appropriations Law is being prepared for publication by the Government
Printing Office (GPO). Government departments, agencies, and other
federal organizations that normally require more than one copy have
been given an opportunity to request them through their agencies'
account representatives at pre-publication rate. This notice is
intended for other parties who might be interested in purchasing the
book.
Discretionary Grants: Further Tightening of Education's Procedures for Making Awards Could Improve Transparency and Accountability. GAO-06-268, February 21, 2006.
What GAO Found: In 2003 and 2004, the Department of Education took steps to improve its procedures for awarding discretionary grants through competitions but certain procedures were not always followed. During this time, after Education introduced some new management controls to its competitive grants procedures, we found it generally adhered to these new policies. For example, GAO did not find evidence that Education reduced any applicant’s request without first conducting a budget analysis, as required, or that Education rescored applications after they had been peer reviewed. However, certain procedures were not always followed; for example, Education frequently did not finalize its plans for conducting competitions before starting the competitions-a step that would help ensure transparency in making awards. In addition, many files lacked documentation that the department screened the applicants, as required, to identify incompetent applicants, ineligible grantees, or unallowable expenditures. Highlights
Information on False Claims Act Litigation. GAO-06-320R, January 31.
The following questions are addressed:
•What statutory guidance and DOJ policies exist regarding the relationship between the government and relators in prosecuting qui tam cases?
•What is known about DOJ’s qui tam caseload based on the data it collects?
Defense Acquisitions: Business Case and Business Arrangements Key for Future Combat System’s Success, by Paul L. Francis, director, acquisition and sourcing management, before the Subcommittee on Airland, Senate Committee on Armed Services. GAO-06-478T, March 1, 2006.
What GAO Found:
There are a number of compelling aspects of the FCS program, and it is hard
to argue with the program’s goals. However, the elements of a sound
business case for such an acquisition program-firm requirements, mature
technologies, a knowledge-based acquisition strategy, a realistic cost
estimate and sufficient funding-are not yet present. FCS began product
development prematurely in 2003. Since then, the Army has made several
changes to improve its approach for acquiring FCS. Yet, today, the program
remains a long way from having the level of knowledge it should have had
before starting product development. FCS has all the markers for risks that
would be difficult to accept for any single system, much less a complex,
multi-system effort. These challenges are even more daunting in the case of
FCS not only because there are so many of them but because FCS represents
a new concept of operations that is predicated on technological
breakthroughs. Thus, technical problems, which accompany immaturity, not
only pose traditional risks to cost, schedule, and performance; they pose
risks to the new fighting concepts envisioned by the Army.
Highlights
DoD-Suspension of the Price Evaluation Adjustment
for Small Disadvantaged Businesses, Notice of 1-year suspension of the
price evaluation adjustment for small disadvantaged businesses, 71
Fed. Reg. 9320, February 23, 2006.
SUMMARY: The Acting
Director of Defense Procurement and Acquisition Policy has suspended the
use of the price evaluation adjustment for small disadvantaged
businesses (SDBs) in DoD procurements, as required by 10 U.S.C.
2323(e)(3), because DoD exceeded its 5 percent goal for contract awards
to SDBs in fiscal year 2005. The suspension will be in effect for 1 year
and will be reevaluated based on the level of DoD contract awards to
SDBs achieved in fiscal year 2006.
DATES: Effective Date: March 10, 2006. Applicability
Date: This suspension applies to all solicitations issued during the
period from March 10, 2006, to March 9, 2007.
OMB-Acquisition Advisory Panel; Notification of
Upcoming Meetings of the Acquisition Advisory Panel, 71 Fed. Reg.
6527, February 08, 2006.
SUMMARY: The Office of Management
and Budget announces two meetings of the Acquisition Advisory Panel (AAP
or “Panel”) established in accordance with the Services Acquisition
Reform Act of 2003.
DATES: There are two meetings announced
in this Federal Register Notice. Public meetings of the Panel will be
held on February 23rd and March 17th, 2006. All meetings will begin at
10 a.m. Eastern Standard Time and end no later than 5 p.m.
ADDRESSES: The two meetings will be held at the White House
Conference Center, Truman Room, 726 Jackson Place NW., Washington, DC
20503. The public is asked to pre-register one week in advance for all
meetings due to security and/or seating limitations (see below for
information on preregistration). time (see contact information above).
(b) Posting of Draft Reports and Preliminary Findings and
Recommendations: Members of the public are encouraged to regularly
visit the Panel’s Web site to view draft reports. Currently, the
working groups are staggering the posting of various sections of their
draft reports at http://
www.acqnet.gov/aapp under “Working
Group Reports.”
DoD-Statement of Policy and Report Relating to
Contracting With Employers of Persons With Disabilities, Request for
comments, 71 Fed. Reg. 5819, February 03, 2006.
SUMMARY: In accordance with section 848 of the National
Defense Authorization Act for Fiscal Year 2006, the Department of
Defense (DoD), the U.S. Department of Education (DoED), and the
Committee for Purchase From People Who Are Blind or Severely Disabled,
are required to issue a joint policy statement and report relating to
contracting with employers of persons with disabilities, and are seeking
comments that will assist in identifying appropriate policy solutions
for implementation of the Randolph- Sheppard Act (20 U.S.C. 107 et seq.)
and the Javits-Wagner-O’Day Act (41 U.S.C. 46 et seq.) as they
pertain to both the operation and management of military dining
facilities.
DATES: Submit written comments to the address shown below
on or before March 1, 2006.
Defense
Acquisitions: DOD Management Approach and Processes Not Well-Suited to
Support Development of Global Information Grid. GAO-06-211, January
30.
What GAO Found DOD’s management approach for the
GIG—in which no one entity is clearly in charge or accountable for
results—is not optimized to enforce investment decisions across
the department. The DOD Chief Information Officer has lead
responsibility for the GIG development effort, but this office has less
influence on investment and program decisions than the military services
and defense agencies, which determine investment priorities and manage
program development efforts. Consequently, the services and defense
agencies have relative freedom to invest or not invest in the types of
joint, net-centric systems that are consistent with GIG objectives.
Without a management approach optimized to enforce departmentwide
investment decisions, DOD is at risk of not knowing whether the GIG is
being developed within cost and schedule, whether risks are being
adequately mitigated, or whether the GIG will provide a worthwhile
return on DOD’s investment.
Highlights
NASA-Open Meeting-Houston, Texas, Procurement
Issues, 71 Fed. Reg. 5074, January 31, 2006.
SUMMARY:
NASA will conduct an open forum meeting to solicit questions, views and
opinions of interested persons or firms concerning NASA’s
procurement policies, practices, and initiatives. The purpose of the
meeting is to have an open discussion between NASA’s Assistant
Administrator for Procurement, industry, and the public. Note: This is
not a meeting about how to do business with NASA for new firms, nor will
it focus on small businesses or specific contracting opportunities.
Position papers are not being solicited.
DATES: Wednesday,
March 8, 2006, from 1 p.m. to 3 p.m.
Quarterly Report of Proceedings of the Armed Services Board of Contract Appeals for the Calendar Quarter Ending 31 December 2005, January 10, 2006.
OMB-Acquisition Advisory Panel; Notification of
Upcoming Meetings of the Acquisition Advisory Panel January 9,
2006., 71 FR 2068, January 12, 2006.
SUMMARY: The
Office of Management and Budget is issuing this notice to advise the
public that the January 19, 2006 public meeting of the Acquisition
Advisory Panel (AAP or “Panel”) established in accordance
with the Services Acquisition Reform Act (SARA) of 2003 has been
cancelled and replaced with a January 31, 2006 public meeting.
DATES: The meeting being cancelled by this notice is the
January 19, 2006 meeting and a new meeting is announced for January 31,
2006, beginning at 9 a.m. eastern time and ending no later than 5 p.m.
GAO-Service Contract Act: Wage Determination Process Could Benefit from Greater Transparency, and Better Use of Violation Data Could Improve Enforcement. GAO-06-27, December 7, 2005.
What GAO Recommends
To improve the transparency of its wage determination process and its SCA strategic enforcement planning efforts, GAO recommends that WHD, among other things, make publicly available the basic methodology it uses to issue wage determinations and consider analyzing its historical SCA contractor violation data to help plan its compliance assistance and investigative efforts. In its written comments, DOL agreed with all of the report’s recommendations.
Highlights
GAO:U.S. Office of Special Counsel: Selected Contracting and Human Capital Issues. GAO-06-16, November 17, 2005.
What GAO Found:
At OS’s request, the Administrative Resource Center (ARC), an office
within the U.S. Department of the Treasury’s Bureau of the Public Debt
which provides OSC with contracting support for a fee, issued a $140,000
sole-source task order for an organizational assessment to a consulting firm,
Military Professional Resources, Inc. (MPRI). In doing so, several required
steps were not taken:
• competition was not sought among Schedule vendors and there was no
convincing demonstration of why a sole-source order was necessary.
• the determination of the reasonableness of MPRI’s price was not
documented, and
• OSC officials performed duties normally done by contracting officer’s
representatives without authorization or training and, further, performed
other duties that should have been reserved for the contracting officer.
Highlights
GAO-NOTICE REGARDING CHANGES TO PROTECTIVE ORDERS & CLARIFICATION OF FILING PROCEDURES, December 16, 2005.
U.S. Postal Service: Purchasing Changes Seem Promising, but Ombudsman Revisions and Continued Oversight Are Needed. GAO-06-190, December 15, 2005.
What GAO Found: USPS has recently taken actions to streamline its purchasing regulations. The three main changes are (1) revoking and superseding its former purchasing regulations, handbooks, circulars, manuals, and guidelines and replacing them with streamlined regulations and interim internal guidance; (2) establishing new provisions for entering into business relationships with suppliers, including the process for declining to accept or consider proposals; and (3) creating a new process for resolving disputes, disagreements, or arguments between USPS and suppliers/potential suppliers, including the establishment of an ombudsman. Some postal stakeholders stated these were positive changes, while others raised concerns about the need or justification for such major changes; potential limitations on suppliers’ ability to appeal USPS decisions; and how USPS officials would be held accountable for the fairness of purchasing decisions and its results (i.e., ability to achieve cost savings) given this additional flexibility and discretion. USPS stated these changes would result in a more flexible, efficient, businesslike purchasing system.
Highlights
Defense Acquisitions: DOD Has Paid Billions in Award and Incentive Fees Regardless of Acquisition Outcomes. GAO-06-66, December 15, 2005.
What GAO Found
The power of monetary incentives to motivate excellent contractor performance and improve acquisition outcomes is diluted by the way DOD structures and implements incentives. While there were two examples in our sample in which the Missile Defense Agency attempted to link award fees directly to desired acquisition outcomes, such as demonstrating a capability within an established schedule, award fees are generally not linked to acquisition outcomes. As a result, DOD has paid out an estimated $8 billion in award fees to date on the contracts in our study population, regardless of outcomes.
Highlights
Competitive Sourcing: Health Benefit Cost Comparison Had Minimal Impact, but DOD Needs Uniform Implementation Process. GAO-06-72, December 9, 2005
What GAO Found:
Most DOD components implemented the health benefit cost provision using a process designed to ensure that private sector proposals include an amount for employee health benefits at least equal to the amount that Office of Management and Budget Circular A-76 requires to be added to agency cost estimates to account for employee health benefits. Under Circular A-76, this amount is 5.5 percent of direct labor costs. The Defense Logistics Agency (DLA), however, used a different process designed to determine whether a private sector offeror’s monthly health benefit premium contributions are at least equal to DOD’s. While DOD’s and DLA’s processes are both reasonable approaches, the use of different processes could result in different competitive sourcing outcomes in some cases. Highlights
Offshoring of Services: An Overview of the Issues. GAO-06-5, November 28, 2005.
What GAO Found
Analysts of the offshoring phenomenon have expressed a range of views about the likely impacts of offshoring on four broad areas. The differing views reflect several factors: the fact that services offshoring is a relatively recent development whose impact is not fully known, the limitations of available data on offshoring, and different theoretical expectations about how services offshoring will impact the U.S. economy. These four areas are:
• The average U.S. standard of living: Traditional economic theory generally predicts that offshoring will benefit U.S. living standards in the long run. However, some economists have argued that offshoring could harm U.S. long-term living standards under certain scenarios, such as if offshoring undermines U.S. technological leadership.
• Employment and job loss: While economic theory generally predicts that offshoring will have little effect on overall U.S. employment levels in the long-run, there is widespread recognition that pockets of workers will lose jobs due to offshoring, though there is disagreement about the expected magnitude of job loss and implications for displaced workers.
• Distribution of income: Some economists maintain that offshoring could increase income inequality in the U.S., while others argue that changes in the income distribution are driven primarily by factors other than offshoring, such as technological change.
• Security and consumer privacy: Experts express varying degrees of concern about the impact of services offshoring on the security of our national defense system and critical infrastructure—psuch as utilities and communication networks—as well as the privacy and security of consumers’ financial and medical information.
A wide range of policies has been proposed in response to concerns about offshoring and its potential effects. These proposals can be categorized into four areas by the concerns they seek to address: (1) improving U.S. global competitiveness, (2) addressing effects on the U.S. workforce, (3) addressing security concerns, and (4) reducing the extent of offshoring. Some analysts have recommended policies in more than one area.
Determining appropriate policy responses to the offshoring phenomenon is challenging due to the limited state of knowledge about the extent and impacts of offshoring. Nonetheless, there are some key areas where additional research might help advance the debate, such as trends in the wages and skill levels of jobs being offshored, reemployment experiences of workers displaced by offshoring, and the extent to which current laws and practices in different sectors of the economy mitigate any increased security-related risks posed by offshoring. In the face of limited federal data, researchers have begun using a variety of approaches to examine such areas.
Highlights
DOD Acquisition Outcomes: A Case for Change. GAO-06-257T, November 15, 2005.
What GAO Found: DOD is facing a cascading number of problems in managing its acquisitions. Cost increases incurred while developing new weapon systems mean DOD cannot produce as many of those weapons as intended nor can it be relied on to deliver to the warfighter when promised. Military operations in Afghanistan and Iraq are consuming a large share of DOD resources and causing the department to invest more money sooner than expected to replace or fix existing weapons. Meanwhile, DOD is intent on transforming military operations and has its eye on multiple megasystems that are expected to be the most expensive and complex ever. These costly conditions are running head-on into the nation’s unsustainable fiscal path. Highlights -
Subcommittees of the Interagency ADR Working Group
Steering Committee, 70 FR 68086, November 9, 2005.
SUMMARY: This notice solicits public comment on three
documents created by subcommittees of the Interagency ADR Working Group
Steering Committee (“Steering Committee”), a group of
federal subject matter experts. The first document, “Protecting
the Confidentiality of Dispute Resolution Proceedings: A Guide for
Federal Workplace ADR Program Administrators”
(“Confidentiality Guide”), provides practical guidance to
program administrators on the application of the confidentiality
provisions of the Administrative Dispute Resolution Act of 1996
(“the ADR Act” 5 U.S.C. 574) to federal workplace dispute
resolution programs. The other two documents (“Supplementation and
Annotation documents”), consist of: (1) “A Guide for Federal
Employee Mediators,” a supplementation and annotation of the 2005
Model Standards of Conduct for Mediators issued by the American
Arbitration Association (“AAA”), American Bar Association
(“ABA”), and the Association for Conflict Resolution
(“ACR”), for use by federal employee mediators; and (2)
“A Guide for Federal Employee Ombuds,” a supplementation and
annotation of the Standards for the Establishment and Operations of
Ombuds Offices issued on February 9, 2004 by the ABA, prepared by the
Steering Committee in conjunction with the Coalition for Federal
Ombudsmen (“CFO”) for use by federal employee ombuds.
Complete versions of each of the three documents can be found at
http://www.adr.gov/draftguides.html or may be requested in hard copy
from Hon. Richard C. Walters at 202-273-6747. The Steering Committee
invites all interested individuals or organizations to submit comments
on these documents for its consideration before they are posted in final
form.
DATES: All comments must be postmarked or emailed by 30 days from
the date of this notice, in order to receive consideration.
Hurricanes Katrina and Rita: Preliminary Observations on Contracting for Response and Recovery Efforts. GAO-06-246T, November 8.
Statement of David E. Cooper, Director Acquisition and Sourcing Management,
Highlights.
OMB-Notification of Upcoming
Meetings of the Acquisition Advisory Panel, 70 FR 67761, November
08, 2005.
SUMMARY: The Office of Management and Budget
announces four meetings of the Acquisition Advisory Panel (AAP or
“Panel”) established in accordance with the Services
Acquisition Reform Act of 2003.
DATES: There are four
meetings announced in this Federal Register Notice. Public meetings of
the Panel will be held on November 29th and December 16th, 2005 and
January 5th and January 19th, 2006. All meetings will begin at 9 a.m.
eastern standard time and end no later than 5 p.m.
ADDRESSES: The November 29, 2005 meeting will be held at
the General Services Administration (GSA) Auditorium at 1800 F Street,
NW., Washington, DC 20405. The location for the December 16, 2005,
January 5, 2006, and January 19, 2006 meetings will be the Federal
Deposit Insurance Corporation (FDIC) basement auditorium, 801 17th
Street, NW., Washington DC 20434. The public is asked to pre-register
one week in advance for all meetings due to security and/or seating
limitations (see below for information on pre-registration).
Seventh Quarterly Report from the Office of the Special Inspector General for Iraq Reconstruction, October 30, 2005. [Some interesting things including the workforce information on numbered pages 77 to 86.-jaw]
Contracts
Awarded to Assist the Global War on Terrorism by the U.S. Army Corps of
Engineers, DoD IG Report D-2006-007, October 14, 2005.
Who
Should Read This Report and Why? Those involved in planning and buying
construction services in Afghanistan should read this report. The report
provides insight on actions taken by U.S. Army Corp of Engineers personnel
regarding the planning, design, construction, and contracting procedures
for creating facilities for the Afghan National Army, as well as
construction projects in the U.S. Central Command area of responsibility
Federal Agencies Fail to Reach Small Business Contracting Goals - Gulf Region Firms Feel Impact,
Democratic House Small Business Committee Report, October 20, 2005
Further Action Needed to Improve Veterans Affairs Acquisition Function. GAO
Report GAO-06-144, October 19, 2005.
What GAO Recommends GAO
recommends that the Secretary of Veterans Affairs direct the Deputy
Assistant Secretary for Acquisition and Materiel Management to (1)
identify specific time frames and milestones for completing actions on
the key NAVSUP recommendations and (2) establish a method to measure
progress in implementing the recommendations.
Highlights
Department of Energy:
Additional Opportunities Exist for Reducing Laboratory Contractors’ Support
Costs. GAO Report No. 05-897, September 9,2005.
What GAO
Recommends: GAO is recommending that DOE take several actions to
improve the comparability of functional support cost data among
laboratories and reduce support costs by assessing the overall
effectiveness of initiatives and ensuring that DOE laboratories adopt
important cost saving initiatives.Highlights
FRAMEWORK FOR
ASSESSING THE ACQUISITION FUNCTION AT FEDERAL AGENCIES, GAO Report
05-218G, September 01, 2005.
Abstract: Federal agencies are
relying increasingly on contractors to perform their missions. With
hundreds of billions of tax dollars spent each year on goods and
services, it is essential that federal acquisition be handled in an
efficient, effective, and accountable manner. The Government
Accountability Office (GAO), however--as well as other accountability
organizations, inspectors general, and the agencies themselves--continue
to identify systemic weaknesses in key areas of acquisition. In fact,
the acquisition function at several agencies has been on GAO’s high-risk
list, which identifies areas in the federal government with greater
vulnerability to fraud, waste, abuse, and mismanagement. In January
2005, we added interagency contracting to this list. Far too often, the
result of poor acquisitions has been an inability to obtain quality
goods and services on time and at a fair price. We can no longer afford
such outcomes. Given current fiscal demands and the fiscal challenges we
are likely to face in the 21st century, the federal government must
improve its ability to acquire goods and services in a cost-effective
manner.
GAO developed this framework to enable high-level, qualitative
assessments of the strengths and weaknesses of the acquisition function
at federal agencies. Such assessments can help senior agency executives
identify areas needing greater management attention, and enable
accountability organizations (including GAO) to identify areas requiring
more focused follow-up work.
The framework consists of four interrelated cornerstones that our work
has shown are essential to an efficient, effective, and accountable
acquisition process: (1) organizational alignment and leadership, (2)
policies and processes, (3) human capital, and (4) knowledge and
information management. The framework supports an integrated evaluation
approach, but each of these cornerstones can stand alone so users of
this framework may tailor evaluations to an agency’s specific needs.
GAO Correspondence-Improvements Needed to the Federal Procurement Data System-Next Generation. GAO-05-960R, September 27. In a letter to OMB Director Bolton the GAO expresses its “concerns regarding whether the new system has achieved the intended improvements in the areas of timeliness and accuracy of data, as well as ease of use and access to data.”
Defense Procurement: Air Force Did Not Fully Evaluate Options in Waiving Berry Amendment for Selected Aircraft. GAO Report No. 05-957, September 23.
What GAO Recommends
GAO recommends that the Department of Defense direct the Air Force to
(1) conduct an analysis of each commercial derivative aircraft system in
the waiver to consider opportunities to achieve compliance with the
Berry Amendment requirements or document why such compliance is not
possible and (2) assess, on a periodic basis, whether changes have
occurred in the supplier base for each aircraft system in the waiver
that would provide opportunities to procure domestically produced items
as required by the Berry Amendment. DOD and the Air Force agreed with
both of GAO’s recommendations. Highlights
Comments on Proposed Changes to Government Property Provisions, FAR Case 2004-025, September 19, 2005. Comments by Smith-Pachter McWhorter & Allen. September 20, 2005. Proposed regulation is here.
Proclamation 7924 of September 8, 2005 To Suspend Subchapter IV of Chapter 31 of Title 40, United States Code, Within a Limited Geographic Area in Response to the National Emergency Caused by Hurricane Katrina, 70 FR 54277, September 13, 2005. President suspends wage provisions in Katrina effected areas.
OFPP-Cost Accounting Standards
Board; CAS Exemption for Contracts Executed and Performed Entirely
Outside the United States, Its Territories, and Possessions, Staff
Discussion Paper (SDP); request for comments. 70 FR 53977, September
13, 2005.
SUMMARY: The Cost Accounting Standards (CAS)
Board, Office of Federal Procurement Policy, invites public comments on
the staff discussion paper regarding a provision that provides an
exemption from CAS for contracts that are executed and performed
entirely outside the United States, its territories, and possessions.
DATES: Comments must be in writing
and must be received by November 14,
2005.
Defense Management: DOD
Needs to Demonstrate That Performance-Based Logistics Contracts Are
Achieving Expected Benefits. GAO-05-966, September 9, 2005.
What GAO Recommends GAO recommended that DOD, to demonstrate
whether performance based logistics contracts are resulting in reduced
costs and increased performance, develop procedures to track whether
program offices validate their business case decisions and verify the
reliability of contractor cost and performance data. Full report.
OMB-Acquisition Advisory Panel; Notification of
Upcoming Meetings of the Acquisition Advisory Panel, 70 FR 53398,
September 08, 2005.
Summary: The Office of Management and
Budget announces a meeting of the Acquisition Advisory Panel (AAP or
“Panel”) established in accordance with the Services
Acquisition Reform Act of 2003.
DATES: The public meeting of the Panel will be held on
September 27, 2005, beginning at 9 a.m. Eastern Time and ending no later
than 5 p.m.
Defense Acquisitions: Actions Needed to Ensure Adequate Funding for Operation and Sustainment of the Ballistic Missile Defense System. GAO-05-817, September 6.
What GAO Found: There is currently uncertainty as to which assets may eventually be
transferred to each military service and under what conditions those
transfers should occur. This uncertainty makes it difficult for the services to
plan to address the requirements of DOD acquisition regulations and realign
their budgets to support the missile defense mission. According to MDA and
other DOD officials, when transfer criteria were established in 2002, the
Department did not fully understand the complexity of the BMDS and how it
could affect transfer decisions. For example, it has been difficult to
determine whether MDA or a military service will be responsible for
managing and funding some assets, such as stand-alone missile defense
radars, because these assets are not integrated on service platforms or do
not perform core service missions. MDA officials suggested that these
components could be operated by either contractors or military personnel
and MDA might fund their operation and sustainment. A team that includes
representatives from the military services, the combatant commands, MDA,
and other DOD offices was established early this year to address transfer
issues. However, because MDA and the services have been unable to reach
agreement on the transfer of some missile defense assets, a unit under the
Joint Chiefs of Staff was tasked in July 2005 with recommending revisions to
the existing transfer criteria.
Full report
Federal Procurement: Additional Data Reporting Could Improve the Suspension and Debarment Process. GAO-05-479, July 29, 2005.
What GAO Recommends:
GAO makes two recommendations: that GSA make contractor identification
numbers a required field in the EPLS database and that OMB require sharing
of data on administrative agreements and compelling reason determinations.
DOD, GSA, and OMB concurred with these recommendations.
GSA Acquisition Regulation; White
Paper-Adding Ancillary Repair and Alteration Services to the General
Services Administration Schedules Program, Notice with a request for
comments, 70 FR 48953, August 22, 2005.
SUMMARY: The
General Services Administration (GSA) is considering adding ancillary
Repair and Alteration (R&A) services to the GSA Schedules Program. The
Federal Acquisition Regulation (FAR) describes R&A services as a subset
of construction services. As such, the GSA Schedules Program has not
been able to provide fully-integrated solutions that often involve R&A
services. The GSA requests that interested parties provide comments.
DATES: Interested parties should submit written comments to
the FAR Secretariat on or before October 21, 2005 to be considered in
the formulation of a final rule.
GSABCA 2005-01, GSBCA; Rules of Procedure of the General Services
Administration Board of Contract Appeals, Final rule, 70 FR 48882, August 22, 2005.
SUMMARY: This document contains final revisions to the rules governing
proceedings before the General Services Administration Board of Contract
Appeals (Board). The Board is revising the language regarding the
processing of awards for payment in contract appeals. The Board, by
majority vote, has adopted this revised rule pursuant to its authority
contained in the Contract Disputes Act of 1978 (41 U.S.C. 601 613).
DATES: Effective Date: August 22, 2005.
Information Technology Association of America(“ITAA”), Comments submitted to the Section 1423 Acquisition Advisory Panel, August 18, 2005. [For discussion purposes, not endorsed by PubKLaw LLC]
OMB Issues New Guidance on Charge Cards, OMB Circular A-123, Management’s Responsibility for Internal Control, August 05, 2005. Appendix B, Improving the Management of Government Charge Card Programs
DoD-Notice of the Defense Acquisition Performance
Assessment Project Meetings, 70 FR 442571, August 03, 2005.
SUMMARY: Pursuant to the Federal Advisory Committee Act (FACA),
Public Law 96463, notice is hereby given that the Defense Acquisition
Performance Assessment (DAPA) Project will hold meetings at the Anteon
Conference Center, 1560 Wilson Blvd., Suite 400, Arlington, VA 22209, on
the dates as stated below. In accordance with Federal Advisory Committee
Act of 1972, as amended, it has been determined that designated Project
meetings will be confidential and/or proprietary in nature pursuant to 5
U.S.C. 552b(c)(4) and will be closed to the public. This notice is being
published in less than the 15 calendar days required by law (August 1011,
2005, meeting) due to administrative oversight in publishing.
Interagency Contracting: Franchise Funds Provide Convenience but Value to DOD Is Not Demonstrated. GAO-05-456, July 29, 2005.
What GAO Found: GovWorks and FedSource, two of the franchise funds that DOD has relied on
for contracting services, have not always ensured fair and reasonable prices
while purchasing goods and services. The franchise funds also may have
missed opportunities to achieve savings from millions of dollars in
purchases, including engineering, telecommunications, or construction
services. In the course of its review, GAO examined $249 million worth of
orders and work assignments from the contracts the franchise funds used to
make purchases on DODs behalf. In many cases, GovWorks sought but did
not receive competing proposals. GovWorks added substantial workas
much as 20 times above the original value of a particular orderwithout
determining that prices were fair and reasonable. FedSource generally did
not ensure competition for work, did not conduct price analyses, and
sometimes paid contractors higher prices for services than established in
contracts with no justification provided in the contract files.
REBUILDING IRAQ Actions Needed to Improve Use of Private
Security Providers, GAO Report 05-737, July 28, 2005.
What
GAO Found: The civilian U.S. government agencies and reconstruction
contractors in Iraq that GAO evaluated have obtained security services,
such as personal and convoy security, from private security providers
because providing security to them is not the U.S. militarys stated
mission. U.S. military forces provide security for those Department of
Defense (DOD) civilians and contractors who directly support the combat
mission. In Iraq, the Department of State and other federal agencies
contract with several private security providers to protect their
employees. Under their contracts, contractors rebuilding Iraq are
responsible for providing their own security and have done so by
awarding subcontracts to private security providers. As of December
2004, the agencies and contractors we reviewed had obligated more than
$766 million for private security providers. The contractors efforts to
obtain suitable security providers met with mixed results, as they often
found that their security provider could not meet their needs. Overall,
GAO found that contractors replaced their initial security providers on
more than half the 2003 contracts it reviewed. Contractor officials
attributed this turnover to various factors, including the absence of
useful agency guidance.
Coast Guard: Progress Being Made on Addressing Deepwater Legacy Condition Issues and Program Management, but Acquisition Challenges Remain. GAO-05-757, July 22.
Performance Contracts Offer Benefits,
but Vigilance Is Needed to Protect
Government Interests, GAO Report, 05-940 June 22, 2005.
What GAO Found
Although comprehensive data on federal agencies’ use of ESPCs are not
available, in fiscal years 1999 through 2003, we found that 20 federal
agencies undertook 254 ESPCs to finance investments in energy-saving
improvements for 5 to 25 years. Through the ESPCs, federal agencies plan
to make annual payments amounting to at least $2.5 billion spread over the
lifetime of the contracts.
Agencies expect to achieve benefits that include energy savings worth at
least $2.5 billion over the life of the contracts, as well as other benefits that
cannot be easily quantified, such as improved reliability of the newer
equipment over the aging equipment it replaced, environmental
improvements, and additional energy and financial savings once the
contracts have been paid for. While these benefits could be achieved using
upfront funds and with lower financing costs, agencies stated that they
generally have not received sufficient funds upfront for doing so and see
ESPCs as a necessary supplement to upfront funding in order to achieve the
benefits cited. Agencies believe that ESPCs also provide unique benefits
such as a partial shift of risk from agencies to private energy services
companies and a more integrated approach to providing efficiency
measures.
DOD Cannot Ensure Its Oversight of
Contractors under Foreign Influence Is Sufficient, GAO Report
05-681, July 15, 2005.
What GAO Found DSS’s oversight of contractors under FOCI depends on contractors self--
reporting foreign business transactions such as foreign acquisitions. As part
of its oversight responsibilities, DSS verifies the extent of the foreign
relationship, works with the contractor to establish protective measures to
insulate foreign interests, and monitors contractor compliance with these
measures. In summary, GAO found that DSS cannot ensure that its approach
to overseeing contractors under FOCI is sufficient to reduce the risk of
foreign interests gaining unauthorized access to U.S. classified information.
OMB-Acquisition Advisory Panel; Notification of Upcoming Meetings of
the Acquisition Advisory Panel, 70 FR 39810, July 11, 2005.
Summary:The Office of Management and Budget announces two
meetings of the Acquisition Advisory Panel (AAP or “Panel”)
established in accordance with the Services Acquisition Reform Act of
2003.
DATES: There are two meetings announced in this Federal Register
Notice. A public meeting of the Panel will be held on July 27, 2005,
beginning at 9 a.m. Pacific Time and ending no later than 5 p.m. A
second public meeting of the Panel will be held on August 18, 2005,
beginning at 9 a.m. Eastern Time and ending no later than 5 p.m.
ADDRESSES: The July 27, 2005 meeting will be held at the Hyatt Regency
Long Beach, Conference Room Beacon B, 200 South Pine Avenue, Long Beach,
CA 90802. The August 18, 2005 meeting will be held at the Federal
Deposit Insurance Corporation (FDIC), Basement auditorium, 801 17th
Street NW., Washington DC 20434. The public is asked to pre-register one
week in advance for each meetings due to security and/or seating
limitations (see below for information on preregistration).
OMB-Acquisition Advisory Panel; Notification of
Upcoming Meetings of the Acquisition Advisory Panel, 70 FR 36664,
June 23, 2005.
Summary: The Office of Management and Budget
announces a meeting of the Acquisition Advisory Panel (AAP or
“Panel”) established in accordance with the Services
Acquisition Reform Act of 2003.
DATES: A public meeting
of the Panel will be held on July 12, 2005 beginning at 9 a.m. eastern
time and ending no later than 5 p.m.
ADDRESSES: The July
12, 2005 meeting will be held at the Federal Deposit Insurance
Corporation (FDIC), Basement Auditorium, 801 17th Street, NW.,
Washington, DC 20434. The public is asked to pre-register one week in
advance for the meeting due to security and seating limitations (see
below for information on pre-registration).
GAO Testimony-COAST GUARD
Preliminary Observations on the Condition of Deepwater Legacy Assets and Acquisition Management Challenges
Statement of Margaret T. Wrightson, Director, Homeland Security and Justice, GAO-05651T, June 21, 2005.
What GAO Found: If the Coast Guard adopts a more aggressive acquisition schedule, it will likely continue to face a number of challenges that have already affected its ability to effectively manage the Deepwater program. GAO has warned that the Coast Guard’s acquisition strategy, which relies on a prime contractor (“system integrator”) to identify and deliver the assets needed, carries substantial risks. In 2004, well into the contract’s second year, key components for managing the program and overseeing the system integrator’s performance had not been effectively implemented. While the Coast Guard has been addressing these problems—for example, putting more emphasis on competition as a means to control costs—many areas have not been fully addressed. A more aggressive acquisition schedule would only heighten the risks.
TESTIMONY of STAN SOLOWAY President, Professional Services Council– Before the Committee on Government Reform Subcommittee on National Security, Emerging Threats, and International Relations June 21, 2005
ITAA and PSC Comments on the Proposed EVMS Regs, June 7, 2005. The Information Technology Association of America (“ITAA”) and the Professional Services Council (“PSC”) submitted these joint comments in response to the proposed rule dated April 8, 2005 (70 Fed. Reg. 17,945) to amend the Federal Acquisition Regulation (the “FAR”) to implement an earned value management system (“EVMS”) policy Government-wide.
Financial Management: Thousands of Civilian Agency Contractors Abuse the Federal Tax Systems with Little Consequence, GAO testimony by Gregory D. Kutz, managing director, forensic audits and special investigations; and Steven J. Sebastian, director, financial management and assurance, before the Permanent Subcommittee on Investigations, Senate Committee on Homeland Security and Governmental Affairs. GAO-05-683T, June 16, 2005. Highlights only.
GSA Acquisition Letter-Implementation of the Small Business Competitiveness Demonstration Program, Acuisition Letter V-05-08, June 01, 2005. Memorandum for all GSA Contracting Activities-This Acquisition Letter provides fiscal year 2004 performance data for the Small Business Competitiveness Demonstration Program to be used for solicitations issued on or after June 1, 2005.
GAO Report, DEPARTMENT OF ENERGY Improved Oversight
Could Better Ensure Opportunities for Small Business Subcontracting,
GAO Report 05-549, May 13, 2005.
What GAO Recommends: GAO
recommends that DOE (1) ensure that facility management contractors are
following federal guidelines for reporting subcontracting achievements;
(2) for internal management purposes, calculate contractors’
achievements as a percent of the annual contract funding; and (3) issue
guidance to clarify oversight responsibilities. In commenting on the
report, DOE agreed with ensuring that reporting guidelines are being
followed and clarifying oversight responsibilities. DOE disagreed with
calculating the achievement data as a percent of contract funding, but
we believe doing so would improve oversight.
Department of Justice position on the applicability of the False Claims Act (FCA) to the Coalition Provisional Authority (CPA) in Iraq. The April 01, 2005 brief addresses the issue of whether the FCA applies to false claims made or presented to the CPA. The April 22, 2005 brief addresses the question of whether the CPA is an entity, agency or instrumentality of the United States for the purposes of the FCA. [Thanks to the ABA Procurement Fraud Committee and Jack Boese, Counsel for Custer Battles, for these materials.]
OMB-Acquisition Advisory Panel; Notification of
Upcoming Meetings of the Acquisition Advisory Panel, 70 FR 30821,
May 27, 2005.
Summary: The Office of Management and Budget
announces a meeting of the Acquisition Advisory Panel (AAP or
“Panel”) established in accordance with the Services
Acquisition Reform Act of 2003.
DATES: A public meeting
of the Panel will be held on June 14, 2005 beginning at 9 a.m. eastern
time and ending no later than 5 p.m.
ADDRESSES: The June
14, 2005 meeting will be held at the Federal Deposit Insurance
Corporation (FDIC), Basement Auditorium, 801 17th Street, NW.,
Washington, DC 20434. The public is asked to pre-register one week in
advance for the meeting due to security and seating limitations (see
below for information on pre-registration).
DEPARTMENT OF ENERGY Improved Oversight Could Better
Ensure Opportunities for Small Business Subcontracting, GAO Report
05-459, May 13, 2005.
What GAO Recommends GAO recommends that
DOE (1) ensure that facility management contractors are following federal
guidelines for reporting subcontracting achievements; (2) for internal
management purposes, calculate contractors’ achievements as a percent of
the annual contract funding; and (3) issue guidance to clarify oversight
responsibilities. In commenting on the report, DOE agreed with ensuring
that reporting guidelines are being followed and clarifying oversight
responsibilities. DOE disagreed with calculating the achievement data as a
percent of contract funding, but we believe doing so would improve
oversight.
See Proposal for Public Comment Posted on the Section 1423 Advisory Panel Web Site In a May 5, 2005 memorandum to the Panel’s Commercial Practices Working Group, Advisory Committee member Marshall Doke “recommends legislation to provide that, except as otherwise expressly required by statutes, the same rules of interpretation and performance of contracts and the liability of the parties shall apply to contractors and the Government.”
Small Business Size Standards-Public
Hearing, 70 FR 25133, May 12, 2005.
Summary: The U.S.
Small Business Administration (SBA) announces that it is holding a
series of public hearings throughout the country on the topic of small
business size standards and other issues such as the possible
participation of businesses majority-owned by venture capital companies
in the Small Business Innovation Research Program. Testimony presented
at these hearings will become part of the administrative record for
SBA’s consideration when the Agency deliberates on approaches to
simplify and restructure size standards and other changes to make size
standards easier to understand and use.
DATES: The Public
Hearings Section below specifies the dates and locations of the public
hearings. Attendees must pre-register 5 business days prior to the
scheduled hearing date.
OFPP-Determination of Executive Compensation
Benchmark Amount Pursuant to Section 39 of the Office of Federal
Procurement Policy (OFPP) Act (41 U.S.C. 435), as Amended, 70 FR
23888, May 05, 2005.
Summary: The Office of Management and
Budget (OMB) is hereby publishing the attached memorandum to the heads
of executive departments and agencies concerning the determination of
the maximum “benchmark” compensation amount that will be
allowable under government contracts during contractors’ FY
2005—$473,318. This determination is required under Section 39 of
the Office of Federal Procurement Policy (OFPP) Act (41 U.S.C. 435), as
amended. The benchmark compensation amount applies equally to both
defense and civilian procurement agencies.(Originally ublished in the Government Contractor
INTERAGENCY
CONTRACTING Problems with DOD’s and Interior’s Orders to Support Military
Operations, GAO Report GAO-05-201, April 29, 2005. Why GAO Did This Study
In recent years, federal agencies have increasingly
turned to interagency contracts-here one agency, for example, places an
order under an existing contract for another agency-as a way to streamline
the procurement process. Interagency contracting can offer benefits of
improved efficiency, but this approach needs to be effectively managed. To
learn more about some of the challenges of interagency contracting, we
reviewed the process that the Department of Defense (DOD) used to acquire
interrogation and certain other services through the Department the
Interior to support military operations in Iraq. On behalf of DOD, Interior
issued 11 task orders, valued at over $66 million, on an existing contract.
This report identifies breakdowns in the procurement process, contributing
factors that led to the breakdowns, and the extent to which recent actions
by Interior and DOD address these contributing factors.
OMB-
Notification of Upcoming Meetings of the Acquisition Advisory Panel, 70
FR 21255, April 25, 2005.
SUMMARY: The Office of
Management and Budget announces two meetings of the Acquisition Advisory
Panel (AAP or “Panel”) established in accordance with the
Services Acquisition Reform Act of 2003.
DATES: There are
two meetings announced in this Federal Register Notice. A public meeting
of the Panel will be held on May 17, 2005, beginning at 9 a.m. Eastern
Time and ending no later than 5 p.m. A second public meeting of the
Panel will be held on May 23, 2005, beginning at 9:15 a.m. central time
and ending no later than 5 p.m.
ADDRESSES: The May 17,
2005 meeting will be held at the Federal Deposit Insurance Corporation
(FDIC), Basement auditorium, 801 17th Street, NW., Washington, DC 20434.
The May 23, 2005 meeting will be held in the Fritz G. Lanham Federal
Bldg, 819 Taylor Street, Room 4A14H (Texas Room), Ft. Worth, TX 76102.
The public is asked to pre-register one week in advance for both
meetings due to security and/or seating limitations (see below for
information on pre-registration).
GAO Testimony-Coast Guard: Preliminary Observations on the Condition of Deepwater Legacy Assets and Acquisition Management Issues, by Margaret T. Wrightson, director, homeland security and justice, before the Subcommittee on Cost Guard and Maritime Transportation, House Committee on Transportation and Infrastructure. GAO-05-307T, April 20, 2005.
OFPP Policy
Letter 05-01, Developing and Managing the Acquisition Workforce, 70 FR 20181, April 18, 2005.
Summary: The principal purposes of
Policy Letter 05-01 are: (1) To define the acquisition workforce to
include additional acquisition-related functions and create a
multi-disciplined acquisition community, (2) to align the civilian
(non-Department of Defense) and defense acquisition workforce training
requirements, and (3) to emphasize the importance to federal managers
and the workforce of continuous learning, to include training on
critical subjects such as ethics, performance-based contracting, and
other timely and topical areas.
See full text of policy Letter 05-01 here.
Letter to OMB Director Bolton from Senate and House Small Business Committees, April 15, 2005. The Chairs and Ranking Members of both committees write to OMB objecting to what they describe as “anti-small business legislation” in H.R. 1268, the Iraq/Afghanistan Emergency Supplemental Appropriations Act for Fiscal Year 2005, particularly Section 6023 which allows DOE to count subcontracts of its M&O contractors and other prime contracts toward meeting DOE’s small business goals.
The comments of SBA’s Thomas M. Sullivan, Chief Counsel for Advocacy, are also available here.
GAO-Testimony of Daniel I.Gordon, AIR FORCE PROCUREMENT Protests Challenging Role of
Biased Official Sustained, GAO-05-436T, April 14, 2005.
What GAO Found
The Federal Acquisition Regulation (FAR) provides that government
business shall be conducted in a manner above reproach and, except as
authorized by statute or regulation, with complete impartiality and with
preferential treatment for none. The documents supporting Mrs. Druyun’s
criminal conviction establish that she was biased in favor of Boeing. Where,
as here, the record establishes that a procurement official was biased in
favor of one offeror, the need to maintain the integrity of the procurement
process requires that GAO sustain the protests unless there is compelling
evidence that the bias did not prejudice the protesters.
In light of the admission by Mrs. Druyun that she was biased in favor of
Boeing, we sustained the protests challenging the C-130 contract award and
the protest challenging the small diameter bomb because the Air Force failed
to show that her bias did not affect the contract award decisions, or
otherwise prejudice the protesters.
Office
of E-Government and Information Technology: Notice of Draft Agency
Implementation Guidance for Homeland Security Presidential Directive
1270, Request for comment, FR 18063, April 08, 2005.
Summary: The Office of Management and Budget requests
comments on the draft department and agency implementation guidance on
Homeland Security Presidential Directive 12(HSPD-12). The guidance is
posted at http://www.whitehouse.gov/omb/inforeg/infopoltech.html.
DATES: To ensure consideration of comments, comments must be in writing
and received by OMB no later than May 9, 2005.
GAO-Progress in Implementing the Services
Acquisition Reform Act of 2003, GAO Report 05-2334, March 31,
2005.
What GAO Found: Just over a year after the enactment
of SARA, progress made on regulations, guidance, and other implementing
actions varies. While nearly all the key provisions of SARA are being
implemented, some provisions are further along than others.
CONTRACT MANAGEMENT, Opportunities to Improve Surveillance on Department of Defense Service Contracts, GAO Report
GAO-05-274, March 2005.
What GAO Found: Surveillance
varied on the 90 contracts we reviewed. Surveillance was insufficient on
26 of the contracts we reviewed but was sufficient on 64 contracts.
Fifteen had no surveillance because no personnel were assigned such
responsibilities; the other 11 had assigned personnel but could not
provide evidence of surveillance due to incomplete documentation. Also,
some surveillance personnel did not receive required training before
beginning their assignments.
What GAO Recommends GAO
recommends that DOD: require properly trained surveillance personnel be
assigned to service contracts by the date of contract award; ensure
surveillance personnel are held accountable for their duties; ensure
DOD’s service contract review process and data collection
requirements provide more useful information; and revise guidance on
surveillance for services procured from other agencies’ contracts.
DOD should also direct the Army to conduct surveillance, as appropriate,
on ongoing Contract Advisory and Assistance Services contracts awarded
before April 2004. DOD concurred with four of our recommendations and
partially concurred with a fifth and identified actions it has taken or
plans to take to address them.
OMB-North American Industry Classification System-Update for 2007, 70 FR 12389, March 11, 2005.
Action: Notice
of solicitation of comments on the Economic Classification Policy
Committee’s recommendations for the 2007 revision of the North American
Industry Classification System.
Dates: To ensure
consideration of comments on the adoption and implementation of the
NAICS revisions detailed in this notice, comments must be in writing.
Please submit comments as soon as possible, but no later than June 9,
2005. Please be aware of delays in mail processing at Federal facilities
due to heightened security. Respondents are encouraged to send both a
hard copy and a second copy via fax or e-mail. This proposed revision to
NAICS would become effective in the U.S. for publication of
establishment data that refer to periods beginning on or after January
1, 2007.
OMB-Improving Government Charge Card Management, Notice and request for
comments, 70 FR 9394, Fbruary 5, 2005
SUMMARY: The Office of
Management and Budget (OMB) requests comments on a draft guidance document
entitled Improving Government Charge Card Management. The draft guidance,
located at http://www.whitehouse.gov/omb/financial/fia_travel.html,
consolidates and updates current government charge card program guidance
previously issued by OMB, the General Services Administration, the
Department of the Treasury, and other Federal agencies. The draft guidance
applies to all Executive Branch departments and agencies, establishing
standard minimum requirements and suggested best practices in areas of
charge card management such as planning, training, risk management, data
collection, credit worthiness, and strategic buying. When this guidance is
finalized, it will be issued as either a new OMB Circular or as an addendum
to an existing OMB Circular.
DATES: To ensure consideration of
comments, interested parties should submit comments in writing to the
Office of Federal Financial Management (OFFM), Office of Management and
Budget, on or before March 28, 2005
[The site-http://www.whitehouse.gov/omb/financial/fia_travel.html appears to be an old page, at least today-2/25/05-jaw]
STATEMENT REGARDING PROTESTS by LOCKHEED MARTIN CORPORATION, L3 COMMUNICATIONS INTEGRATED SYSTEM, AND BAE SYSTEMS INTEGRATED DEFENSE SOLUTIONS, INC. of the C-130 AVIONICS MODERNIZATION PROCUREMENT February 24,2005. In a decision issued on February 24, 2005, the Government Accountability Office (GAO) sustained protests filed by Lockheed Martin Corporation, L3 Communications Integrated System, and BAE Systems Integrated Defense Solutions, Inc. concerning the Department of the Air Forces award of a contract to the Boeing Company for the C-130 Avionics Modernization Program. The protesters alleged that the decision to award to Boeing was the result of improper involvement and influence by Darleen Druyun, then the Air Force’s Principal Deputy Assistant Secretary for Acquisition, who subsequently pled guilty in United States District Court to violating the provisions of 18 U.S.C. section 208(a) regarding conflicts of interest.
GAO STATEMENT REGARDING LOCKHEED MARTIN SMALL DIAMETER BOMB PROCUREMENT PROTEST, February 18, 2005. Press Release. GAO sustains Lockheed protest in which Darlene Druyan was involved.
The Air Force Should Improve How It Purchases AWACS Spare Parts, GAO Report 05-169, February 16, 2005.
Partial abstractOver the past several years, the Air Force has negotiated and awarded more than $23 million in contracts to the Boeing Corporation for the purchase of certain spare parts for its Airborne Warning and Control System (AWACS) aircraft. Since they first became operational in March 1977, AWACS aircraft have provided U.S. and allied defense forces with the ability to detect, identify, and track airborne threats. In March 2003, GAO received allegations that the Air Force was overpaying Boeing for AWACS spare parts. This report provides the findings of GAO’s review into these allegations. Specifically, GAO identified spare parts price increases and determined whether the Air Force obtained and evaluated sufficient information to ensure the prices were fair and reasonable. GAO also determined the extent to which competition was used to purchase the spare parts.
International Agreements Result in Waivers of Some U.S. Domestic Source Restrictions, GAO Report 05-188, January 26, 2005.
Summary: Congress enacted
domestic source restrictions to encourage federal agencies to purchase U.S.
goods and services. Congress has also approved international trade
agreements that seek to reduce or eliminate restrictions on trade. In
addition, the Department of Defense (DOD) has signed defense procurement
memoranda of understanding (MOUs) with foreign countries under which the
department has agreed to waive certain domestic source restrictions to the
extent permitted by law. To provide a better understanding of the
relationship between domestic source restrictions and international
agreements, GAO was asked to determine the effect these agreements have on
the applicability of U.S. domestic source restrictions.
GAO-Update of High-Risk Series Reports, GAO 05-207, January 25, 2005. GAO’s four areas of hi risks includes the management of interagency contracting. Interagency contracts can leverage the government’s buying power and provide a simplified and expedited method of procurement. But several factors can pose risks, including the rapid growth of dollars involved combined with the limited expertise of some of agencies in using these contracts and recent problems related to their management. Various improvement efforts have been initiated to address this area, but improved policies and processes, and their effective implementation, are needed to ensure that interagency contracting achieves its full potential in the most effective and efficient manner.
Senate Committee on Small Business and Entrepreneurship Comments on DOSAR Proposed Regulations, January 12, 2005. The Senate committee advises the Secretary of State that the Committee is of the view that the proposed amendments to the DOSAR do not demonstrate that there is a statutory basis for exempting contracts awarded overseas from the reach of the Small Business Act. The Committee urges the State Department “to clearly commit to compliance with the Small Business Act in all procurements regardless of the place of award and to modify its regulations accordingly.”
GAO-Partnerships and Energy Savings Performance Contracts Raise
Budgeting and Monitoring Concerns, GAO-05-55, December 16, 2004.
What GAO Found:
Energy savings performance contracts (ESPC) and public/private
partnership arrangements we examined were authorized by Congress and
did not require reporting of the full, long-term costs up front in the budget.
ESPCs are financed over time through annual cost savings from energy
conservation measures (ECM) and only their initial-year costs must be
recognized up front. OMB policy determined how agencies obligated ESPCs
in their budgets. With partnerships, agencies sometimes used short-term
leases to acquire assets constructed for the government’s long-term use and
benefit. As a result, budgetary decisions may favor alternatively financed
assets. However, spreading costs over time enabled agencies to acquire
capital that might not have been obtainable if full, up-front appropriations
were required.
Analysis of Type of Business Coding for the Top 1,000 Contractors Receiving Small Business Awards in FY 2002 , Report for the SBA Office of Advocacy, Research Summary No. 246 December 2004
COMPENDIUM OF AUDITS OF THE FEDERAL TECHNOLOGY SERVICE REGIONAL CLIENT SUPPORT CENTERS, GSA IG Audit, December 14, 2004.
Summary Results Our audits of FY 2003 procurements identified a number of improper contract and task order awards involving millions of dollars that did not comply with procurement laws and regulations. Our findings identified numerous instances of inappropriate contracting practices, such as misuse of contracting vehicles, inadequate competition, nonexistent or ineffective contract administration, poor or non-existent support for fair and reasonable pricing, misleading descriptions of work, persistent and unsupported use of time and materials task orders, misuse of the IT Fund, and purchase of “open market” items without negotiation or price evaluation.
Our limited reviews of FY 2004 procurement actions generally indicated some improvement overall from recent enhanced management controls put in place in the Regions. However, in some regions, we found several of the same issues identified in our reviews of 2003 procurements, such as improper contracting actions, inadequate competition, and insufficient documentation of price reasonableness. We will perform more comprehensive audit tests of the CSC program management controls during FY 2005 to further assess the Regions’ improvement efforts.
Several factors contributed to the problems noted, including, an ineffective system of internal management controls: an environment that emphasized client agency satisfaction and a culture that emphasized revenue growth. As a result, there is no reasonable assurance that goods and services were procured at fair and reasonable prices, and the fundamental objectives underlying the Federal procurement process were not achieved.
Though procurement irregularities were observed in all Regions, the significance and prevalence of the deficiencies varied by Region, as did the progress of improvement actions. Our detailed findings on each individual Region were summarized in individual audit reports on each Region and issued to the FTS Commissioner and the respective Regional Administrator. These reports and their appendices, including management responses, are included in their entirety in sections I through XI that follow after this Summary Results section. [11.5 Meg pdf file-423 pages]
Further
Action Needed to Promote Successful Use of Special DHS Acquisition
Authority, GAO Report 05-136, December 15, 2004.
Summary To promote the efficient and effective use of its
other transactions authority GAO recommends that DHS (1) provide
guidance on including audit provisions in other transactions
agreements, (2) develop a training program in the use of other
transactions, and (3) capture knowledge obtained during the
acquisition process for use in planning and implementing future other
transactions projects.
FAA’s Acquisition Management Has
Improved, but Policies and Oversight Need Strengthening to Help Ensure
Results, GAO Report 05-23, November 12, 2004.
Summary GAO’s review of seven major ATC systems and
analysis of FAA’s performance in acquiring major systems found that
AMS has not resolved longstanding problems it experienced prior to its
implementation of AMS—including developing requirements and managing
software—and is just beginning to focus on how these acquisitions will
improve the efficiency of ATC operations. While FAA has made progress
by providing guidance for avoiding past weaknesses, it has not applied
these improvements consistently. According to FAA officials,
reorganization under and improved oversight by FAA’s new
performance-based Air Traffic Organization should help ensure greater
consistency and an increased focus on results. Past GAO reports have
demonstrated that the success of an acquisition process depends on
good management, whether it be under AMS or the FAR.
2004 PSC Procurement Policy Survey—Business as Unusual, Moving Target & Shifting Risks
The Professional Services Council, in partnership with PSC member
company Grant Thornton, has released the results of their bi-yearly 2004
Procurement Policy Survey that explores the government acquisition
community’s perspectives on a range of key acquisition issues and
trends
2004 Alternative Dispute Resolution Awards in Acquisition, October 22, 2004. Robert A. Burton, Acting Administrator of the Office of Federal Procurement Policy, announces the third annual competition to recognize outstanding uses of ADR by federal agencies and private companies in acquisition matters. Nominations must be received by December 31, 2004.
Executive Order 13360 of October 20, 2004, Providing Opportunities for Service-Disabled Veteran Businesses To Increase Their Federal Contracting and Subcontracting, 69 FR 62547, October 26, 2004. The President issues Executive Order 13360 to strengthen opportunities in Federal contracting for service-disabled veteran businesses.
Darleen A. Druyun, former Air Force procurment official, was sentenced to federal prision recently. See October 2, 2004 Washington Post article. The Plea agreement and supplemental plea agreements for this matter are also available.
BEST PRACTICES Using Spend Analysis to Help Agencies Take a More Strategic Approach to Procurement, GAO Report, September 16, 2004. This report includes recommendations to help Veterans Affairs, Agriculture, and HHS adopt the full range of spend analysis best practices. This report also includes recommendations intended to help Justice and Transportation step up the process of gaining knowledge of their spending to take a more strategic approach to procurement.
DEFENSE MANAGEMENT Opportunities to Enhance the Implementation of Performance-Based Logistics, GAO Report 04-715, August 16, 2004. GAO recommends that DOD (1) revise its policy and guidance to the services to reflect the industry practice of using performance-based logistics as a tool to achieve economies at the subsystem or component level, rather than at the platform-level, and (2) provide for sufficient technical data to support alternative support options using either the public or the private sector. DOD concurred with our recommendations, noting that it would re-emphasize via policy and training the use of performance-based logistics at the subsystem level and take steps to update acquisition policy to include guidance on purchasing rights or long-term access to technical data.
INFORMATION TECHNOLOGY—DOD’s Acquisition Policies and Guidance Need to Incorporate Additional Best Practices and Controls, GAO Report No. 04-722, July 30, 2004. DOD’s revised policies and guidance largely incorporate 10 best practices for acquiring any type of information technology (IT) business system. For example, the revisions include the requirement that acquisitions be economically justified on the basis of costs, benefits, and risks. However, the revisions generally do not incorporate 8 best practices relating to the acquisition of commercial component-based systems. For example, they do not address basing any decision to modify commercial components on a thorough analysis of the impact of doing so or on preparing system users for the business process and job roles and responsibilities changes that are embedded in the functionality of commercial IT products. In total, GAO found that DOD’s acquisition policies and guidance fully incorporate 8 of the 18 best practices that they were evaluated against, partially incorporate 5 practices, and do not incorporate the remaining 5 practices (see figure). DOD intends to expand its acquisition guidance to incorporate additional best practices by September 30, 2004, but department officials cite other priorities as a reason why they have not been able to complete this effort and could not provide a plan specifying how this will be accomplished. Until DOD’s revised policies and guidance incorporate key systems acquisition best practices, the risk that system investments will not consistently deliver promised capabilities and benefits on time and within budget is increased.
CONTRACT MANAGEMENT—Guidance Needed to Promote Competition for Defense Task Orders, GAO Report No. 04-874, July 30, 2004. Competition requirements were waived for nearly half (34 of 74) of the multiple-award contract and federal supply schedule orders GAO reviewed. Often, contracting officers waived competition based on requests from the program offices to retain the services of contractors currently performing the work. In addressing these requests, safeguards to ensure that waivers were granted only under appropriate circumstances were lacking. Specifically, guidance for granting waivers did not sufficiently describe the circumstances under which a waiver of competition could be used. In addition, the requirements for documenting the basis for waivers were not specific, and there was no requirement that waivers be approved above the level of the contracting officer.
DEFENSE ACQUISITIONS—The Global Information Grid and Challenges Facing Its Implementation, GAO Report No. 04-858 July 28, 2004. The GIG is a huge and complex undertaking that is intended to integrate virtually all of DOD’s information systems, services, and applications into one seamless, reliable, and secure network. DOD’s overall concept is to enable data access for a variety of systems and users in the network no matter which military service owns a weapon system or where a user might be located around the world. DOD is looking to the GIG to form the basis of a network-centric or “netcentric” way of fighting wars and to create a decisive advantage over adversaries. DOD
House of Representatives Committee On Government Reform-Oversight on Iraqi Contracting, Testimony of Dr. Steven Kelman, July 21, 2004
Contracting With Service-Disabled Veteran Owned Small Businesses, July 15, 2004. Testimony of Professor Steven L. Schooner before the House of Representatives Benefits Subcommittee of the Committee on Veterans Affairs and Subcommittee on Workforce, Empowerment, and Government Programs of the Committee on Small Business
Further Efforts Needed to Sustain VA’s Progress in Purchasing Medical Products and Services, GAO Report 04-718, June 22, 2004 (Released July 22, 2004), GAO recommends that VA use its buying power to obtain more favorable prices for healthcare services, and strengthen oversight to ensure its medical centers obtain the best available prices. GAO also recommends that VA identify the complete cost of the FSS program and reassess its user fee to see if it needs to be adjusted. VA concurred with GAO’s recommendations.
GAO Report, TSA–High-Level Attention Needed to Strengthen Acquisition Function, GAO 04-544, May 2004, Released July 1, 2004. GAO is recommending that the Secretary of the Department of Homeland Security direct the Administrator of TSA to elevate the Office of Acquisition, develop adequate internal controls and performance measures to ensure effective policies and processes, and assess its current acquisition workforce and proposed knowledge management systems.
Impact of Strategy to Mitigate Effects of Contract Bundling Strategy on Small Business Is Uncertain, GAO Report 04-454, June 29, 2004. GAO recommends that OMB (1) ensure agencies report uniform and reliable contract bundling data and (2) establish contract bundling metrics. OMB concurred with the first recommendation, but not the second. GAO believes metrics are needed to help determine how bundling affects small businesses. GAO also recommends that SBA disseminate best practices to maximize small business contracting opportunities, as required by the OFPP strategy. SBA concurred.
NONCOMPETITIVE FEDERAL CONTRACTS INCREASE UNDER THE BUSH ADMINISTRATION, UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON GOVERNMENT REFORM MINORITY SPECIAL INVESTIGATIONS DIVISION MAY 2004.
COALITION PROVISIONAL AUTHORITY-Order Number 87,-PUBLIC CONTRTACTS, May 14, 2004. Section 1 Principles of Government Public Procurement provides:
1) This Order applies to all procurements of goods, services, and
construction services by the State of Iraq acting through Ministries or
other federal agencies (collectively “agencies”); or governmental units
including Regions; Governorates; and all other subdivisions of the State
of Iraq (collectively “governmental units”) that may commit public
funds. Procurement is the acquiring by contract with public funds of
goods, services or construction services by and for the use of the
government through purchase or lease. The State of Iraq through
Ministries or other federal agencies; Regions; Governorates; and all
other subdivisions of the State of Iraq shall commit public funds in
accordance with the following basic principles:
[See comments submitted by ABA]a) To the maximum extent practicable, full, fair and open competitive public bidding procedures, including, but not limited to: effective tender publication; objective bid evaluation criteria; public bid opening; and, the use of electronic commerce methods.
b) International standards of transparency, predictability, fairness and equality of treatment;
c) Procurement process integrity, minimum ethical standards and non-conflict of interest;
d) Offeror’s right to file tender protests and related appeals;
e) Tender dispute resolution mechanisms and the timely resolution of such disputes.
Determination of Executive Compensation Benchmark Amount, OMB- 69 FR 26897, May 14, 2004.
SUMMARY: The Office of Management and Budget (OMB) is hereby publishing
the attached memorandum to the heads of executive departments and
agencies concerning the determination of the maximum “benchmark”
compensation amount that will be allowable under government contracts
during contractors’ FY 2004--$432,851. This determination is required
to be made pursuant to Section 808 of Pub. L. 105-85. It applies
equally to both defense and civilian procurement agencies.
Public Comments Submitted in Response to USPS Proposed Procurement Rule Changes The law firm of Wickwire Gavin has collected and posted the comments which were received by the Postal Service in response to the proposed changes. Thanks to David Hendel ands Steve Hurlbut for this effort.
The Coalition Provisional Authority (CPA): Origin, Characteristics, and Institutional Authorities, April 29, 2004, L. Elaine Halchin Analyst in American National Government and Finance Division, Congressional Research Service, Library of Congress. Interesting paper on the CPA including discussion of procurement, fiscal law issues and the Turkcell protest.
Comments on Procurement Processes in Iraq–March 15, 2004. Cover letter with disclaimers.
These comments on procurement processes in Iraq were prepared by a varied group of United States procurement practitioners, chaired by Michael K. Love. They are members of the Section of Public Contract Law of the American Bar Association. They responded to a request from ABA’s Central European and Eurasian Law Initiative (CEELI) for assistance with a request from the United States Department of State, Bureau for International Narcotics and Law Enforcement.
These comments reflect the consensus of the drafters named therein. The views expressed are those of the drafters. They have not been approved by the Section’s governing Council or by the ABA House of Delegates or Board of Governors, and they thus should not be construed as representing the Policy of the American Bar Association. They should also not be construed to represent the views of the drafters’ firm, agencies, present or past clients or those of any entity of the American Bar Association.
Army Policy for Use of the Army’s Microsoft Enterprise License Agreement, 69 FR 12838, March 18, 2004.
SUMMARY: The Army policy for use of the Microsoft (MS) Enterprise
License Agreement (ELA) was signed on February 4, 2004 by Mr. Claude M.
Bolton, Jr., Army Acquisition Executive and Lieutenant General Steven
W. Boutelle, Army Chief Information Officer/G-6.
The policy designates the MS ELA as the single source for MS
software and establishes procedures for using and acquiring MS products
for new IT hardware purchases. The policy applies to the Active Army,
the Army National Guard, and the U.S. Army Reserve.
Effective immediately, hardware vendors will utilize the Army
inventory of MS ELA products when Army organizations purchase new
desktops, laptops, and servers requiring MS software. Army
organizations must ensure hardware vendors install the MS ELS software
provided by the Army. Therefore, the MS ELA policy prohibits Army
organizations from procuring MS software from hardware vendors or any
other source of MS software. The Army Small Computer Program (ASCP) is
the Army’s exclusive source for all MS software purchases.
DATES: The policy is effective immediately and applies to the Active
Army, the Army National Guard, and the U.S. Army Reserve.
Coast Guard’s Deepwater Program Needs Increased Attention to Management and Contractor Oversight, GAO Report 04-380, March 2004. GAO recommends that the Secretary of Homeland Security direct the Commandant of the Coast Guard to take a number of actions to improve Deepwater management and contractor oversight.
Some DOD Contractors Abuse the Federal Tax System with Little Consequence, GAO Report 04-095, February 12, 2004. DOD and IRS records showed that over 27,000 contractors owed about $3 billion in unpaid taxes as of September 30, 2002. DOD has not fully implemented provisions of the Debt Collection Improvement Act of 1996 that would assist IRS in levying up to 15 percent of each contract payment to offset a DOD contractors federal tax debt. We estimate that DOD could have collected at least $100 million in fiscal year 2002 had it and IRS fully utilized the levy process authorized by the Taxpayer Relief Act of 1997. As of September 2003, DOD had collected only about $687,000 in part because DOD provides contractor payment information from only 1 of its 16 payment systems to TOP. DOD had no formal plans at the completion of our work to provide payment information from its other 15 payment systems to TOP.
Department of Homeland Security-Acquisition Program, An October 22, 2003, presentation to the Board of Contract Appeals Bar Association by Greg Rothwell, Chief Procurement Officer
Restructuring GSA’s Federal Supply Service and Federal Technology Service, GAO Testimony 04-132T, October 2, 2003. GAO recommends that as it moves forward with its current performance initiative, GSA develop the capability to provide its customer agencies with information and analyses they need to leverage their buying power to reduce procurement costs.
Full Service Contracting, A retired navy officer friend, Jeff Cuskey, who is a professor at the Navy Post Graduate School (NPS) in Monterey, CA, is engaged in a research project for the Department of the Navy on Full Service Contracting. Jeff would appreciate any comments, insights, experiences, etc., on this subject, especially with respect to potential legal issues. Thanks for your participation. LeRoy Haugh, phone 703-532-5377.
GAO Report-High-Level Attention Needed to Transform DOD Services Acquisition, GAO 03-935 September, 2003. DOD should strengthen its contracting management structure for services and business processes to promote use of best practices such as centralizing key functions, conducting spend analyses, using commodity teams, achieving strategic orientation, reducing purchasing costs, and improving performance. DOD also needs a strategic plan on how the military departments could best accomplish this.
Contracts On Line. A recent article about Ralph Nader’s proposal that contracts should be on line is of interest. As described below, GSA had requested comments on a pilot program to post awarded on the worldwide web. Comments on the GSA proposal by the COUNCIL OF DEFENSE AND SPACE INDUSTRY ASSOCIATIONS(CODSIA) and ABA’s Section of Public Contract Law are available for review.
GAO Report:Civilian Agency Compliance with Revised Task and Delivery Order Regulations,GAO Report 03-983, August 29, 2003. To evaluate compliance, GAO examined how agencies provided vendors with a fair opportunity to be considered for orders, clearly described the services or supplies needed, and complied with capital planning requirements.
The CORE Final Project Report to the Calfornia Department of General Services-"Review and Analysis of Uniform Procurement Practices", August 2003. The call for uniformity in government purchasing practices
has been sounding in the State of California for more than
three decades. Reactions, responses, and recommendations
have varied in focus and pace, from reports by the Legislature
to Executive Orders, from policy quick fixes using
Management Memorandum to the protracted process of
reorganizing and consolidating the State’s entire purchasing
code.
Although some progress has been realized, many of the
underlying, core issues remain unresolved, hindering any
lasting and meaningful improvements. This report presents
findings, recommendations, and implementation plans for
initiatives aimed at resolving core issues regarding uniform
purchasing policies and procedures. Comments by Members of the Public Contract Law Section should be sent to Norm Thorpe at illini202@ameritech.net
Request for Amicus Support August 20, 2003. Cy Phillips requests amicus support for his petition for cert to the Supreme Court for the Core Concepts Federal Prision Industries (FPI) case. The CAFC had affirmed the COFC stating that "The Court of Federal Claims correctly concluded that FPI is a NAFI whose contracts are not expressly deemed contracts with the United States under the Tucker Act and that it therefore lacked jurisdiction over Core Concepts’ complaint."[As a post script, this case was filed yesterday, and it is before the Court as 03-254. The period for filing an amicus brief expires on Thursday, September 18th.]
GSA Proposes Debarment of MCA, July 31, 2003. The U.S. General Services Administration (GSA) today announced the proposed debarment of MCI WorldCom from receiving new Federal government contracts.
Blue Ribbon Commission on the Use of Competitive Procedures for Department of Energy Laboratories; Notice of Open Meeting
68 FR 42404, July 17, 2003.
SUMMARY: This notice announces an open meeting of the Secretary of
Energy Advisory Board’s subcommittee known as the Blue Ribbon
Commission on the Use of Competitive Procedures for Department of
Energy Laboratories. The Federal Advisory Committee Act (Public Law 92-
463, 86 Stat. 770), requires that agencies publish these notices in the
Federal Register to allow for public participation.
Name: Blue Ribbon Commission (BRC) on the Use of Competitive
Procedures at Department of Energy Laboratories.
Dates and Times: Tuesday, August 5, 2003, 2 p.m.-4 p.m.
ADDRESSES: Ritz Carlton Hotel, Salon 2, Pentagon City, 1250 South Hayes
Street, Arlington, VA 22202.
DFARS Transformation, Phase 2 Final Report, Ron Poussard, Director of the Defense Acquisition Regulatory Council, presented an overview of the goals and status of the ongoing effort to transform the DFARS at the June 17, 2003 meeting of the Acquisition Reform & Experimental Procurement Processes Committee meeting of the ABA’s Section of Public Contract Law. (1.4 M PDF file)
Notice of Public Meeting; Utilities Privatization, Department of Defense.
SUMMARY:
The Director, Defense Procurement and Acquisition Policy, and
the Deputy Under Secretary of Defense, Installations and Environment,
are co-sponsoring a public meeting to discuss potential deviations to
Federal Acquisition Regulation (FAR) Part 31 (Contract Cost Principles
and Procedures) for contracts awarded under the statutory authority at
10 U.S.C. 2688 (Utility systems; conveyance authority). Under the
Department of Defense Utilities Privatization Program, by September
2005, the Department will complete a privatization evaluation of each
utility system at every Active Duty, Reserve, and Guard installation,
within the United States and overseas, that is not designated for
closure under a base closure law. The co-sponsors of the meeting would
like to hear the views of interested parties regarding which
provisions, if any, of FAR part 31 are significantly problematic for
utility contractors and the reasons why.
DATES: The meeting will be held on July 21, 2003, from 9 a.m. to 5
p.m., local time.
ADDRESSES: The meeting will be held in Room C-43, Crystal Mall 3, 1931
Jefferson Davis Highway, Arlington, VA 22202.
FOR FURTHER INFORMATION CONTACT: Mr. David Capitano, Office of the
Director, Defense Procurement and Acquisition Policy, by telephone at
703-847-7486 or by e-mail at david.capitano@osd.mil.
GAO—Comments on Selected Provisions of the Services Acquisition Reform Act of 2003(SARA). June 13, 2003. These comments are a follow-on to earlier comments by GAO on the proposed legislation. See Comments on Proposed Services Acquisition Reform Act, April 30, 2003
GENERAL ACCOUNTING OFFICE, Bid Protest Regulations, Government Contracts, Notice, 68 FR 35411, June 13, 2003. PDF Version.
SUMMARY: The Office of Management and Budget (OMB) recently announced
major revisions to Circular A-76, which governs how Federal agencies
determine whether to transfer performance of commercial activities from
the public to the private sector, or vice versa. Performance of
Commercial Activities, 68 FR 32134 (May 29, 2003). As relevant here,
the revisions would make competitions involving in-house government
competitors more similar to private/private competitions conducted
under the Federal Acquisition Regulation (FAR) than has been the case
with the competitive sourcing process. This notice solicits comments
regarding two key legal questions, namely, whether the revisions made
to the Circular affect the standing of an in-house entity to file a bid
protest at the General Accounting Office (GAO), and who would have the
representational capacity to file such a protest. This notice also
solicits comments on other procedural issues raised by the Circular’s
revisions.
DATES: Comments should be submitted on or before July 16, 2003.
Integrated Acquisition Environment Pilot; Posting Awarded Contracts on the Worldwide Web, 68 FR 33950, June 06, 2003. The Integrated Acquisition Environment (IAE) Program Office, GSA. Notice and request for comments. PDF version.
SUMMARY: The Integrated Acquisition Environment (IAE) program office,
which is responsible for improving Federal acquisition processes
through reliance on a technology-based integrated infrastructure, is
initiating a pilot to begin making Federal contracts available to the
general public on the worldwide web (web). This pilot effort is
intended to increase transparency in agency acquisition activities and
further the Administration’s global vision of a citizen-centric E-
Government. The IAE program office seeks public comment to help in
identifying priorities for the pilot’s implementation.
DATES: Interested parties should submit comments to the Regulatory
Secretariat at the address shown below on or before August 5, 2003.
OMB Office of Federal Procurement Policy (OFPP) announces its second annual competition for Alternative Dispute Resolution Awards in Acquisition, together with materials needed for submitting nominations. Nominations are due by July 15, 2003 and the awards will be conferred sometime this Fall at a very special ceremony. The awards program contemplates awards not only for federal agency ADR programs, but also for outstanding ADR programs and initiatives in the private sector.
Office of Federal Procurement Policy; Determination of Executive
Compensation Benchmark Amount Pursuant to Section 808 of Public Law
105-85, 68 FR 23501, May 02, 2003.
SUMMARY: The Office of Management and Budget (OMB) is hereby publishing
the attached memorandum to the heads of executive departments and
agencies concerning the determination of the maximum ``benchmark’’
compensation that will be allowable under government contracts during
contractors’ FY 2003--$405,273. This determination is required to be
made pursuant to Section 808 of Public Law 105-85. It applies equally
to both defense and civilian procurement agencies.
Office of Federal Financial Management; Standard Data Elements for Federal Grant Applications, 68 FR 17090, April 08, 2003. Notice of proposed requirement to establish standard data
elements.
SUMMARY: OMB proposes (1) to establish a standard set of data elements
and definitions as found on the SF-424, plus five additional data
elements for Federal agencies and grant applicants to use on both paper
and electronic applications for discretionary grants, and (2) to
require a new assurance statement to replace the current assurances
found on the SF-424. The Federal E-Grants initiative calls for the
development of a one-stop, electronic grant portal where potential
grant recipients will receive full service electronic grant
administration as part of the implementation of the Federal Financial
Assistance Management Improvement Act of 1999 (Pub. L. 106-107).
DATES: Comments on the proposed data elements, definitions and
consolidated assurance statement must be submitted by June 9, 2003.
FAA PURCHASE CARDS—Weak Controls Resulted in Instances of Improper and Wasteful Purchases, GAO Report No. GAO-03-405, March 27, 2003.
What GAO Found: Weaknesses in FAA’s purchase card controls resulted in instances of
improper, wasteful, and questionable purchases, as well as missing and
stolen assets. These internal control weaknesses included inadequate
segregation of duties, lax supervisory review and approval, missing
purchase documentation, inadequate training, and insufficient program
monitoring activities, all of which created an environment vulnerable to
fraud, waste, and abuse.
Commercial Use of Share-in-Savings Contracting, GAO Report 03-327, January, 2003.
What GAO Found: SIS can be a highly effective contracting technique to motivate
contractors to generate savings and revenues for their clients. But to
be successful, clients and their contractors need to be specific and in
agreement in their goals and objectives, as well as how to achieve them.
This can be a difficult task for more complex services, but the
companies we spoke with found that pursuing this type of arrangement was
worth the extra effort. [Share-In-Savings contracts are authorized by SEC. 210. SHARE-IN-SAVINGS INITIATIVES of the E-Government Act of 2002.]
Manager’s Guide to Technology Transition in an Evolutionary Acquisition Environment, January 31, 2003. Defense Procurement and Acquisition Policy, Office of the Under Secretary of Defense (Acquisition, Technology and Logistics) This document, the Manager’s Guide to Technology Transition In an Evolutionary Acquisition Environment (the guide) is intended to be a source of information to promote collaboration among team members. It provides an overview of the processes, communities, programs, and challenges associated with technology transition. The guide shows the reader possible ways ahead for their programs and areas of pursuit and, where possible, lists sources that can provide information about strategies or approaches. (3.2 M pdf file)
Missile Defense: Events Related to Contractor Selection for the Exoatmospheric Kill Vehicle, GAO Report-03-324R, January 27, 2003. The report documents the circumstances in which Boeing disclosed to the government that employees of its team had obtained and misused proprietary information developed by another competitor, Raytheon. [As reported in the January 30, 2003 issue of the Washinton Post, page A21, in a story by Bradley Graham.]
ACQUISITION WORKFORCE Status of Agency Efforts to Address Future Needs, GAO Report-03-055, Published January 17, 2003. GAO is recommending that the Office of Federal Procurement Policy (OFPP) work with procurement executives to ensure that the lessons learned from agencies’ efforts to address future acquisition workforce needs are shared with all federal agencies.
Guidance on public-private business arrangements per 10 USC 2536 The Under Secretary for Defense, December 30, 2002. Memorandum implements DOD FY 2002 Authorization Act provisions which changed 10 USC § 2563 to allow certain damage claims for sales contracts under working capital funded activities.[The subject line of the memo appears to contain a transposition typo—it should state 10 USC 2563, not 2536.]
E.O. 13279, Equal Protection of the Laws for Faith-Based and Community Organizations, December 12. 2002. and E. O. 13280, Responsibilities of the Department of Agriculture and the Agency for International Development With Respect to Faith- Based and Community Initiatives, December 12, 2002. Executive Orders to ensure, in part, that "No organization should be discriminated against on the basis of religion or religious belief in the administration or distribution of Federal financial assistance under social service programs." Financial Assistance is defined to include grants, contracts, loans, loan guarantees, property, cooperative agreements, food commodities, direct appropriations, or other assistance.
Adjudicated Violations of Certain Laws by Federal Contractors, GAO Report GAO-03-163, November 15, 2002. GAO report on December 2000 proposed rules on contractor responsibility ("black listing" issues.)
Performance Based Service Contracts. A recent meeting of the Acquisition Reform and Experimental Procurement Processes Committee of the ABA Section of Public Contract Law had a presentation from the principal authors of the September, 2002, GAO Report "Guidance Needed for Using Performance Based Service Contracting". The government’s recently released "Seven Steps to Peformance-Based Services Acquisition" was briefly discussed as a topic for a future meeting.
Have Federal Procurement Reforms Gone Too Far? PDF File. (Text version) A discussion on the PubKLaw-L list from 10/21/02 to 10/30/02 which began from a paper by Judge Stephen M. Daniels, Chairman of the GSBCA. Judge Daniels’ paper may be found here.
OFPP Contract Bundling Report, October 29, 2002. A Strategy for Increasing Federal Contracting Opportunities for Small Business. (800K pdf file)
Training Supporting Implementation of Section 803 of the National
Defense Authorization Act for Fiscal Year 2002, Competition
Requirements for Purchase of Services Under Multiple Award Contracts, 67 FR 65721 October 28, 2002.
SUMMARY: The Director, Defense Procurement, is sponsoring two training
sessions to support implementation of the Defense Federal Acquisition
Regulation Supplement final rule published in the Federal Register on
October 25, 2002, under DFARS Case 2001-D017, Competition Requirements
for Purchase of Services Under Multiple Award Contracts.
DATES: Training will be conducted on October 31, 2002, and on November
12, 2002, from 1-3 p.m.
Lyons Security, Complaint for Declaratory and Injunctive Relief Civil Action No. 02-1548 (JR), D.D.C, Filed August 7, 2002. Lyons challenges a debarment by the State Department over State’s allegations that Lyons fabricated documents submitted in a bid protest to the GAO. Interesting case and another good example of the use of hyperlinks in a filing from Cy Phillips.
Office of Federal Procurement Policy; Determination of Executive Compensation Benchmark Amount Pursuant to Section 808 of Public Law 105-85; Notice, 67 FR 30463, May 6, 2002. OFPP establishes Executive Compensation at $387,783.
CDA Interest Calculator, Attached is an Excel spreadsheet from Douglas Kornreich, US Corps of Engineers, to calculate CDA Interest. You put the balance under "settlement amount" and then type in the starting date, and each 6 month period thereafter to the ending date. It automatically does the lookup in the interest rate table. Note that you need to keep updating the rates . . . The rate that was set as of 1/1/01, is not yet included.
Confidentiality in Federal Alternative Dispute Resolution Programs 65 FR 83085, December 29, 2000. Department of Justice. Guidance from the Federal Alternative Resolution Council.
SUMMARY: This notice publishes a document entitled "Confidentiality in
Federal Alternative Dispute Resolution Programs", which provides
guidance to assist Federal agencies in developing ADR programs. The
document was created by a subcommittee of the Federal ADR Steering
Committee, a group of subject matter experts from federal agencies with
ADR programs. It was approved by the Federal ADR Council, a group of
high-level government officials chaired by the Attorney General. The
document contains detailed guidance on the nature and limits of
confidentiality in Federal ADR programs and also includes guidelines
for a statement on these issues that Federal neutrals may use in ADR
proceedings. PDF Version
EPA Policy on Alternative Dispute Resolution, 65 FR 81858, December 27, 2000.
SUMMARY: This document publishes the final policy of the United States
Environmental Protection Agency (EPA) regarding the use of alternative
dispute resolution ("ADR"). A draft of this policy was published in
the Federal Register (65 FR 59837) on October 6, 2000, for public
comment. The public comment period closed on December 5, 2000, and no
comments were received. Therefore, EPA is republishing this policy as a
final policy. Nothing in this document creates any right or benefit by
a party against the United States.
Revision of OMB Circular No. A-130, Transmittal No. 4., 65 FR 76777, December 12, 2000. Management of Federal Information Resources PDF Version See complied revised Circular and Appendices at http://cio.gov/docs/Documents.htm#omb
GAO Report-Not Following Procedures Undermines Best Pricing Under GSA’s Schedule
GAO-01-125, November 28, 2000. GAO reviews DOD’s ordering under FSS contracts.
Federal Acquisition Regulation; Reverse Auctioning; Notice, 65 FR 65231, October 31, 2000.
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (the Councils) are considering whether
there is a need at this time for guidance on the use of reverse auction
techniques and, if so, how it can be most effectively communicated
(e.g., through the Federal Acquisition Regulation, best practice
guides, agency instructions, or training). The Councils request that
interested parties provide comments.
DATES: Interested parties should submit comments to the FAR Secretariat
at the address shown below on or before January 2, 2001.
On March 27, 2000, the FAA Administrator granted a new delegaton to Office of Dispute Resolution for Acquisition ("ODRA") for final decisions of the agency with respect to bid protest and contract disputes.
OFPP Rescind Various Policy Letters. 65 FR 16968, March 30, 2000. Rescission of Office of Federal Procurement Policy; Policy
Letters 77-2, 78-2, 78-3, 78-4, 79-1, 79-2, 80-3, 80-6, 80-8, 81-1, 81-
2, 82-1, 83-1, 83-2, 83-3, 84-1, 85-1, 89-1, 91-2, 91-4, 92-5, and 95-1.
SUMMARY: Notice is hereby given that the Office of Federal Procurement
Policy (OFPP) is rescinding the following OFPP Policy Letters: 77-2,
Section 502(c) of Pub. L. 95-89; 78-2, Preventing "Wage Busting" for
Professionals: Procedures for Evaluating Contractor Proposals for
Service Contracts; 78-3, Requests for Disclosure of Contractor-Supplied
Information Obtained in the Course of a Procurement; 78-4, Field
Contract Support Cross-Servicing Program; 79-1, Implementation of
Section 15(k) of the Small Business Act, as amended: Office of Small
and Disadvantaged Business Utilization; 79-2, Boards of Contract
Appeals: Position Allocation Pursuant to Public Law 95-563; 80-3,
Regulatory Guidance on Pub. L. 95-563, the Contract Disputes Act of
1978; 80-6, Regulatory Guidance on Section 221 of Public Law 95-507;
80-8, Establishment of Procurement Data Reporting Requirements to
Comply with Public Law 96-39 (as amended by Transmittal Memoranda Nos.
1, 2, and 3); 81-1, Procurement Procedures, Advance Procurement
Planning, and Review of End-of-Year Purchases; 81-2, Policy Guidance
for the Labor Surplus Area Programs; 82-1, Policy Guidance Concerning
Government-wide Debarment, Suspension, and Ineligibility; 83-1,
Withholding of Funds from Construction Contract Progress Payments; 83-
2, Publicizing the Development of Procurement Policies and Regulations;
83-3, Procurement of Architect-Engineer Services, 84-1, Federally
Funded Research and Development Centers; 85-1, Federal Acquisition
Regulations System; 89-1, Conflict of Interest Policies Applicable to
Consultants; 91-2, Service Contracting; 91-4, Use of Irrevocable
Letters of Credit; 92-5, Past Performance Information; and 95-1,
Subcontracting Plans for Companies Supplying Commercial Items.
Antidumping Duty Order-Vector Supercomputers from Japan. 62 FR 55392, October 24, 1997. The International Trade Administration of the Department of Commerce issues an antidumping order for vector supercomputers shipped to fulfill the requirements of a contract entered into on or after October 16, 1997. As a result of the order, Customs is required to collect a cash deposit ranging from 173.08 percent to 454 percent depending on the manufacturer.
Sales at Less Than Fair Value:Vector Supercomputers from Japan On August 28, 1997 the International Trade Administration of the Department of Commerce Published its August 20, 1997 determination that vector supercomputers from Japan are being sold in the United States at less than fair value. The determination set the margin as follows: Fujitsu Ltd. - 173.08%; NEC Corp. - 454.00%; and all others - 313.54% For entries after April 7, 1987, the Custom Service will require a cash deposit or a bond equal to the estimated amount by which the normal value exceeds the export price. Pdf Version.