Audit of Acquisition Planning and Cost Controls While Transitioning Support Service Contracts in Iraq

Submitting OIG:

Department of State OIG

Date Issued:

Thursday, September 16, 2021

Agency Reviewed / Investigated:

Department of State

Submitting OIG-Specific Report Number:

AUD-MERO-21-43

Component, if applicable:

Bureau of Administration

Bureau of Legislative Affairs

Bureau of Near Eastern Affairs

Location(s):

Iraq

Type of Report:

Audit

Questioned Costs:

$663,193,784

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
AUD-MERO-21-43-Web-Posting508.pdf	1.7 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
OIG recommends that the Bureau of Administration, in coordination with the Bureau of Near Eastern Affairs, discontinue its practice of awarding noncompetitive contracts for Operations Maintenance Support Services and Baghdad Life Support Services. The bureau should award Mission Iraq-specific task orders under the Diplomatic Platform Support Services contract or use an alternative mechanism to competitively replace the Operations and Maintenance Support Services and Bagdad Life Support Services contracts.
2	Open	No
OIG recommends that the Bureau of Administration, Office of the Procurement Executive (OPE), in accordance with the Federal Acquisition Regulation 7.104 “General procedures,” disseminate procedures that are described in Office of Acquisition Management Memorandum 15-10 to review acquisition plans with key stakeholders annually or whenever significant changes occur. OPE should also establish additional internal controls to ensure the procedures are followed, such as training personnel on the requirements and minimum documentation requirements for acquisition plan reviews.
3	Open	No
OIG recommends that the Bureau of Administration, Office of the Procurement Executive, in accordance with Government Accountability Office Standards for Internal Control in the Federal Government, establish procedures to conduct regular monitoring of internal controls, respond to schedule risks, and engage in effective communication with the program office to identify and address noncompliance with Federal and Department of State criteria, timeliness, and external coordination.
4	Open	No
OIG recommends that the Bureau of Administration, Office of the Procurement Executive, implement controls to (a) achieve critical acquisition deadlines on time, including checking the acquisition’s progress and assessing changes in the operating environment and (b) identify contracts that have missed critical deadlines, including Diplomatic Platform Support Services, for Department of State (Department) leadership to review and take action as necessary. Controls should ensure that the Department prioritizes timely acquisitions to achieve cost savings, economies of scale, and efficiencies.
7	Open	No
OIG recommends that the Bureau of Administration, Office of the Procurement Executive (OPE), strengthen its review and approval process and oversight of noncompetitive contract actions awarded, based on Federal Acquisition Regulation 6.302-2, “Unusual and compelling urgency,” related to circumstances permitting other than full and open competition. OPE should put in place controls to ensure those actions are not excessive, such as enforcement of time limitations on the duration of the use of these actions, and use appropriate rationales, which exclude lack of advanced planning. In addition, OPE should provide training, as appropriate, to officials in the review process to ensure controls are followed.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

OIG recommends that the Bureau of Administration, in coordination with the Bureau of Near Eastern Affairs, discontinue its practice of awarding noncompetitive contracts for Operations Maintenance Support Services and Baghdad Life Support Services. The bureau should award Mission Iraq-specific task orders under the Diplomatic Platform Support Services contract or use an alternative mechanism to competitively replace the Operations and Maintenance Support Services and Bagdad Life Support Services contracts.

Open

OIG recommends that the Bureau of Administration, Office of the Procurement Executive (OPE), in accordance with the Federal Acquisition Regulation 7.104 “General procedures,” disseminate procedures that are described in Office of Acquisition Management Memorandum 15-10 to review acquisition plans with key stakeholders annually or whenever significant changes occur. OPE should also establish additional internal controls to ensure the procedures are followed, such as training personnel on the requirements and minimum documentation requirements for acquisition plan reviews.

Open

OIG recommends that the Bureau of Administration, Office of the Procurement Executive, in accordance with Government Accountability Office Standards for Internal Control in the Federal Government, establish procedures to conduct regular monitoring of internal controls, respond to schedule risks, and engage in effective communication with the program office to identify and address noncompliance with Federal and Department of State criteria, timeliness, and external coordination.

Open

OIG recommends that the Bureau of Administration, Office of the Procurement Executive, implement controls to (a) achieve critical acquisition deadlines on time, including checking the acquisition’s progress and assessing changes in the operating environment and (b) identify contracts that have missed critical deadlines, including Diplomatic Platform Support Services, for Department of State (Department) leadership to review and take action as necessary. Controls should ensure that the Department prioritizes timely acquisitions to achieve cost savings, economies of scale, and efficiencies.