The Employment and Training Administration Should Stop Using State Agencies To Pass Funds Through to Contractors

Offices in the Department of Labor's Employment and Training Administration (ETA) arranged with the State of Nevada for nine pass through agreements to obtain services for several Labor activities. A pass through agreement is a procurement initiated and principally carried out by ETA, but entered into by a state and a contractor using federal funds granted to the state. The work to be performed under the nine agreements varied, but it was to be utilized primarily at the regional or national level, rather than primarily benefiting Nevada's activities. Labor selected the contractors, negotiated the substantive aspects of the agreements, asked Nevada to enter into the agreements with the contractors, monitored work progress, and certified invoices submitted by the contractors.