One-third of the DoD FY 2006 spending on goods and services was for subcontracts. Concerns have been raised among DoD auditors and Congress about the potential for excessive pass-through charges by contractors that add little or no value when work is subcontracted. To better understand this risk, this report assesses the extent to which DoD may be vulnerable to these charges, and examines: (1) DoD¿s approach to assessing the risk of excessive pass-through charges when work is subcontracted; (2) the strategies that 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 pass-through charges. Illustrations.
The DoD and State and the U.S. Agency for International Development (USAID) have relied extensively on contractors in Iraq and Afghanistan, including using contractors to help administer other contracts or grants. Relying on contractors to perform such functions can provide benefits but also introduces potential risks, such as conflicts of interest, that should be considered and managed. This report reviewed: (1) the extent to which DoD, State, and USAID rely on contractors to perform contract and grant administration in Iraq and Afghanistan; (2) the reasons behind decisions to use such contractors and whether the decisions are guided by strategic workforce planning; and (3) whether agencies considered and mitigated related risks. Illus.
The DoD is the fed. government¿s largest purchaser of contractor-provided services, obligating more than $207 billion in FY 2009. The Nat. Defense Author. Act for FY 2008 directed DoD to issue guidance providing for independent management reviews for services acquisitions. The Act required that the guidance provide a means to evaluate specific contracting issues. This report: (1) assessed the extent to which DoD¿s guidance addressed the Act¿s requirements and how the guidance was implemented; and (2) determined the status of actions taken by the military departments pursuant to DoD¿s guidance. The report obtained data on the number of reviews conducted as of Sept. 2009; and analyzed memoranda of 29 acquisitions valued at over $1 billion.
As a result of internal control deficiencies discussed in a 2007 report on certain contracts at the Centers for Medicare and Medicaid Services (CMS), the auditor was asked to identify the extent to which CMS: (1) implemented effective control procedures over contract actions; and (2) established a strong control environment for contract management. The auditor used a statistical random sample of 2008 CMS contract actions to assess CMS internal control procedures. The results were projected to the population of 2008 CMS contract actions. The auditor reviewed contract file documentation and interviewed senior acquisition management officials. Includes recommendations. Charts and tables.
Addresses the challenges DoD faces to improve the efficiency and effectiveness of its weapon systems acquisition and contract mgmt. Weapon systems programs continue to take longer to develop, cost more, and deliver fewer quantities and capabilities than originally planned. DoD also continues to face challenges managing service contracts and contractors. The current fiscal environment combined with operational demands elevates the need to improve weapon systems acquisition and contract mgmt. DoD has taken steps in response to recommendations made over the past decade. DoD needs to: translate policy into practice; ensure steps undertaken result in intended outcomes; and conduct a reexamination of its reliance on contractors. Illus.
Competition is a critical tool for achieving the best return on the government's investment. While federal agencies are generally required to award contracts on the basis of full and open competition, they are permitted to award non-competitive contracts in certain situations. Agencies are also required to establish competition advocates to promote competition. This report assessed: (1) trends in non-competitive contracts and those receiving only one offer when competed; (2) exceptions to and factors affecting competition; (3) whether contracting approaches reflected sound procurement practices; and (4) how agencies are instituting the competition advocate role. Charts and tables. This is a print on demand publication.
When the Dept. of Homeland Security (DHS) was created, it was granted ¿other transaction¿ authority -- a special authority used to meet mission needs. While the authority provides greater flexibility to attract and work with nontraditional contractors to research, develop, and test innovative technologies, other transactions carry the risk of reduced accountability and transparency -- in part because they are exempt from certain fed. acquisition regulations and cost accounting standards. This report determines the extent to which nontraditional contractors have been involved in DHS¿s other transactions, and assesses DHS¿s mgmt. of the acquisition process when using this authority to identify additional safeguards. Includes recommendations. Illus.
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