Resolution Trust Corporation:

Further Actions Needed to Implement Contracting Management Initiatives

GGD-92-47: Published: Mar 5, 1992. Publicly Released: Mar 5, 1992.

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Pursuant to a legislative requirement, GAO reviewed the: (1) status of Resolution Trust Corporation (RTC) efforts to incorporate contracting system reforms; and (2) changes affecting the contractor selection process and the evaluation of proposals submitted by contractors competing for standard asset management and disposition agreement (SAMDA) contracts.

GAO found that: (1) by February 1992, RTC had made substantial progress in developing a policies and procedures manual, defining contracting roles and responsibilities, and developing standardized contract solicitation documents for the SAMDA contracting process, as the RTC Funding Act required; (2) RTC has nearly completed realigning its organizational structure to provide better separation of duties between contracting and program staff; (3) RTC also standardized its forms and procedures for reviewing SAMDA contract proposals and for analyzing proposed contract fees; (4) RTC field staff in different offices do not uniformly evaluate the technical competency of potential SAMDA contractors and lack guidelines for evaluating the financial capability for all types of potential contractors; (5) only 63 percent of the contracting personnel at the six consolidated offices visited had experience in contracting before accepting positions with RTC, although the act directed RTC to develop training programs specifically for RTC and private contracting staff; and (6) RTC needs to complete the development of its contracting training courses and accelerate the training in order to ensure that the best contractors will be hired to assist in the disposal of failed thrifts' assets.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: On April 16, 1993, RTC issued a series of desk guides including the following guides: Contracting for Program Offices, Simplified Contracting Desk Guide, Debriefing Desk Guide, Proposal Evaluation for Technical Evaluation Plan Members and Contracting Officers, and Final Selection and Award for Formal Contracting. On June 30, 1993, RTC issued the final guide in the series, Contractor Financial Capability Review Desk Guide.

    Recommendation: The President and Chief Executive Officer, RTC, should develop desk guides to help field staff implement contracting policies and procedures properly and consistently.

    Agency Affected: Resolution Trust Corporation

  2. Status: Closed - Implemented

    Comments: Exhibit W to the RTC Contract Policies and Procedures Manual revision issued in May 1992 provides the evaluation standards.

    Recommendation: The President and Chief Executive Officer, RTC, should develop uniform source selection plans criteria and standards for documenting selection decisions.

    Agency Affected: Resolution Trust Corporation

  3. Status: Closed - Implemented

    Comments: On June 30, 1993, permanent procedures were put into place with the issuance of the Contractor Financial Capability Review Desk Guide.

    Recommendation: The President and Chief Executive Officer, RTC, should issue interim guidelines for performing all financial capability evaluations as soon as possible and place a high priority on developing uniform, permanent procedures.

    Agency Affected: Resolution Trust Corporation

  4. Status: Closed - Implemented

    Comments: Since RTC's contracting system was revised in May 1992, it has trained over 1,000 employees on this system.

    Recommendation: The President and Chief Executive Officer, RTC, should accelerate the development and implementation of contracting training programs.

    Agency Affected: Resolution Trust Corporation

 

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