Audit of Noncompetitive Contracts in Support of Overseas Contingency Operations in Afghanistan and Iraq

Submitting OIG:

Department of State OIG

Date Issued:

Wednesday, October 20, 2021

Agency Reviewed / Investigated:

Department of State

Submitting OIG-Specific Report Number:

AUD-MERO-22-03

Component, if applicable:

Bureau of Administration

Location(s):

United States

Afghanistan

Iraq

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
AUD-MERO-22-03-Web508.pdf	1.32 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
OIG recommends that the Bureau of Administration develop and implement additional internal control procedures for monitoring to ensure that justifications and approvals for other than full and open competition are completed and approved in accordance with Federal Acquisition Regulation requirements and Office of the Procurement Executive guidance and that reviewing officials verify that the justifications include all required content.
2	Open	Yes
OIG recommends that the Bureau of Administration develop and implement internal controls to ensure Contracting Officers comply with Federal Acquisition Regulation Subpart 6.305, Office of the Procurement Executive Procurement Implementation Bulletin 2014-11, and Office of Acquisitions Management Memorandum 16-16 regarding providing public notice of noncompetitive contracts and maintaining proof of public notice in contract files.
3	Open	No
OIG recommends that the Bureau of Administration (a) determine the feasibility, practicality, and cost-effectiveness of adding functions to the new online application being developed for justifications and approvals that will automatically transfer completed justifications to the electronic contract file and also post the justifications publicly in accordance with the Competition in Contracting Act and the Federal Acquisition Regulation and (b) if determined to be feasible, practical, and cost-effective, incorporate such a function in the application.
4	Open	No
OIG recommends that the Bureau of Administration issue guidance requiring that all contracting personnel use the newly created online application for justifications and approvals once the application has been tested and determined to meet the goals established by the Bureau of Administration.
5	Open	No
OIG recommends that the Bureau of Administration issue a directive to the Office of Acquisitions Management to update its Quality Assurance Plan to expand the steps necessary to ensure compliance with Federal Acquisition Regulation provisions regarding preparing fair and reasonable price determinations for noncompetitive awards. The steps should include requiring that Contracting Officers use the sample template for price negotiation memoranda and retain evidence of the analysis conducted in support of such determinations in the contract files.
6	Open	No
OIG recommends that the Bureau of Administration develop and implement guidance directing all price negotiation memoranda-approving officials certify that price negotiation memoranda address all required elements in compliance with Federal Acquisition Regulation Subpart 15.406-3 before approving them.
7	Open	No
OIG recommends that the Bureau of Administration issue a directive to the Office of Acquisitions Management to update its Memorandum 15-09, “Contract File Documentation,” regarding price negotiation memoranda. The updated memorandum should include instructions for Contracting Officers to verify that all price negotiation memoranda packages are properly approved and placed in the contract file.
8	Open	No
OIG recommends that the Bureau of Administration develop and implement additional internal control procedures for monitoring compliance with Federal Acquisition Regulation requirements and Department policy regarding determining and documenting fair and reasonable price determinations and maintaining complete contract files.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

OIG recommends that the Bureau of Administration develop and implement additional internal control procedures for monitoring to ensure that justifications and approvals for other than full and open competition are completed and approved in accordance with Federal Acquisition Regulation requirements and Office of the Procurement Executive guidance and that reviewing officials verify that the justifications include all required content.

Open

Yes

OIG recommends that the Bureau of Administration develop and implement internal controls to ensure Contracting Officers comply with Federal Acquisition Regulation Subpart 6.305, Office of the Procurement Executive Procurement Implementation Bulletin 2014-11, and Office of Acquisitions Management Memorandum 16-16 regarding providing public notice of noncompetitive contracts and maintaining proof of public notice in contract files.

Open

OIG recommends that the Bureau of Administration (a) determine the feasibility, practicality, and cost-effectiveness of adding functions to the new online application being developed for justifications and approvals that will automatically transfer completed justifications to the electronic contract file and also post the justifications publicly in accordance with the Competition in Contracting Act and the Federal Acquisition Regulation and (b) if determined to be feasible, practical, and cost-effective, incorporate such a function in the application.

Open