The Department Needs to Improve Oversight Practices to Close Out Contract Files by Complying with Federal Regulations and Departmental Requirements

For our audit of a sample of 124 standalone contracts and individual task orders composed of various contract types (e.g., time-and-material, labor-hour, and fixed price) that were closed during fiscal years (FYs) 2016 and 2017, our objective was to determine whether National Institute of Standards Technology (NIST), National Oceanic and Atmospheric Administration (NOAA), and U.S. Census Bureau (the Bureau) contracting personnel administered contract closeout procedures in accordance with federal and Departmental regulations. Overall, we found that—for all 124 standalone contracts and individual task orders—contracting personnel did not comply with at least one or more of the key Federal Acquisition Regulation, Commerce Acquisition Manual, and Departmental contract closeout requirements. Based on our review, the total expended value of contracts that did not fully comply with the closeout requirements was approximately $391.3 million.