Defense Acquisitions: Further Actions Needed to Address Weaknesses in DOD's Management of Professional and Management Support Contracts
GAO-10-39
Published: Nov 20, 2009. Publicly Released: Nov 20, 2009.
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Highlights
In fiscal year 2008, the Department of Defense (DOD) obligated $200 billion on services contracts, including $42 billion for professional and management services. The Government Accountability Office (GAO) previously identified weaknesses in DOD's management and oversight of services contracts, contributing to DOD contract management being on GAO's high-risk list. For selected professional and management support contracts, GAO was asked to examine (1) the extent to which DOD considered the risks of contractors closely supporting inherently governmental functions at key decision points, (2) how DOD implemented performance-based practices, (3) the extent to which DOD designated trained surveillance personnel, and (4) whether a new review process may improve DOD's management of such contracts. GAO reviewed federal regulations, agency policies and guidance, and analyzed seven acquisitions approved from 2004 to 2007 and 64 related task orders for services.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | To better inform acquisition decisions, assist DOD personnel in performing their management oversight responsibilities, and improve DOD's surveillance of services contracts, the Secretary of Defense should revise documentation requirements for DOD's current management review to include information on the extent to which services to be provided will closely support inherently governmental functions as well as the consideration given to using DOD civilian employees to perform such functions. |
In response to requirements in the House Armed Services Committee Report 112-479, accompanying the National Defense Authorization Act for Fiscal Year 2013, DOD will issue new guidance to require that contracting officers implement a standardized services contract approval form. Defense Procurement and Acquisition Policy officials stated that the standardized checklist, which is to be approved before issuance of any contract solicitation, will identify if the services to be performed include those that closely supporting inherently governmental activities. Officials added that the check list will also include whether consideration was given to using DOD civilian employees to perform such functions.
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| Department of Defense | To better inform acquisition decisions, assist DOD personnel in performing their management oversight responsibilities, and improve DOD's surveillance of services contracts, the Secretary of Defense should require before the award of any contract or issuance of task order for services closely supporting inherently governmental functions that program and contracting officials consider and document their assessment of the unique risks of these services and the steps that have been taken to mitigate such risks. |
As of September 2017, DOD has not provided additional guidance to its contracting officers on considering, documenting, and mitigating the risks associated when obtaining services closely associated with inherently governmental functions and has no plans to do so.
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| Department of Defense | To better inform acquisition decisions, assist DOD personnel in performing their management oversight responsibilities, and improve DOD's surveillance of services contracts, the Secretary of Defense should develop guidance to identify approaches that DOD should take to enhance management oversight when contractors provide services that closely support inherently governmental functions. |
As of September 2017, DOD has not provided additional guidance to its contracting officers on the steps they should take to enhance oversight of contractors providing services closely associated with inherently governmental functions and has no plans to do so.
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| Department of Defense | To better inform acquisition decisions, assist DOD personnel in performing their management oversight responsibilities, and improve DOD's surveillance of services contracts, the Secretary of Defense should direct the military departments to review their procedures to ensure that properly trained surveillance personnel have been assigned prior to and throughout a contract's period of performance. |
In June 2012, DOD amended the Defense Federal Acquisition Regulation Supplement to require its contracting officers to use the DOD Contracting Officer Representative Tracking Tool to electronically document surveillance personnel nominations, appointments, terminations, and training certifications for all service contracts valued above the micro-purchase threshold. The tool also provides the military departments with a means to electronically monitor the status of surveillance personnel appointments and training across DOD.
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Topics
Audit oversightContract administrationContract oversightContract performanceContractsManagement and operating contractsPerformance managementPerformance measuresProgram evaluationProgram managementRequirements definitionRisk assessmentService contractsStandardsStrategic planningWork measurementGovernment agency oversight