By Emelie Rutherford
Federal auditors have called for the Pentagon to better assess risks tied to contractors performing so-called inherently-governmental functions as part of acquisition programs.
The Department of Defense (DoD) agrees with this and related recommendations in a new Government Accountability Office (GAO) report, “Further Actions Needed to Address Weaknesses in DOD’s Management of Professional and Management Support Contracts.”
The report was requested by members of the Senate Armed Services Committee. It says Pentagon policies do not require “assessments of the risks associated with contractors closely supporting inherently governmental functions as part of its management reviews of acquisition strategies nor when task orders are issued for professional and management services.”
“Such risks include the potential loss of government control over and accountability for mission-related policy and program decisions,” it adds.
For the report, GAO analyzed seven acquisitions approved from 2004 to 2007 and 64 related task orders for services, while also reviewing federal regulations and agency policies and guidance.
“Though all seven acquisitions and more than 75 percent of the task orders GAO reviewed provided for such (professional and management) services, GAO found no evidence that these risks were among those considered in the documentation reviewed,” the November 2009 report states.
“DoD guidance issued after these acquisitions were approved requires that consideration be given to using civilian personnel rather than contractors when the activities closely support inherently governmental functions,” the GAO says. “This guidance, however, does not require DoD personnel to consider and document risks posed when contractors perform these activities. Further, DoD personnel were unaware of the need to provide enhanced oversight when contracting for such services.”
GAO recommended the Pentagon “consider and document how contractors closely support inherently governmental functions during management reviews and to mitigate related risks before issuing task orders.”
DoD concurs with these and other related recommendations spelled out in an Oct. 20 draft GAO report, according to a Nov. 20 response from Defense Procurement and Acquisition Policy Director Shay Assad.
He says the Pentagon will, among other things, revise documentation requirements for management reviews to ensure consideration is given to “address the extent to which contracted services support functions that closely support inherently governmental functions.” DoD also will “institute a required procedure to consider and document an assessment of unique risks association with contracts and task orders for services closely supporting inherently governmental functions,” Assad says.
The Pentagon officials adds that while DoD is decreasing funding for contracted support and scaling back the role for contractors performing support services, the department still “will continue to rely on service contracts to support the mission.”
“Therefore, our effective management of these contracts, particularly the professional, administrative and management support service contracts, remains critical,” he says.