Direct Contracting by the Agency for International Development Can Be Better Managed
NSIAD-84-108
Published: Jul 09, 1984. Publicly Released: Jul 09, 1984.
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Highlights
In response to a congressional request, GAO examined certain aspects of the Agency for International Development's (AID) management of direct contracting, including: (1) the extent of competition; (2) the adequacy and clarity of scopes of work issued by AID; (3) the extent to which overhead rates and other indirect costs are validated and efforts made to minimize them; (4) the extent to which the numbers and technical proficiency of contractor personnel and associated costs are held at the minimum levels necessary; and (5) the adequacy of AID monitoring and reporting of contractor progress.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| U.S. Agency for International Development | The Administrator, AID, should take action to better quantify, report, and monitor the amount of, and reasons for, amendments and other noncompetitive actions. Actions should include: (1) using computer capabilities to better quantify competitive and noncompetitive procurement actions by bureaus, missions, and offices; (2) using the information so developed to identify trends and monitor changes in competitive and noncompetitive performance and establish goals for improving competitiveness in AID contracting; (3) identifying the factors that contribute to noncompetition, such as inadequate lead time; (4) formulating actions to increase competition, such as requiring project officers to plan adequate time for competition during project design; and (5) implementing and modifying personnel performance standards of project and contracting officers to reduce or eliminate pressures that lead to noncompetitive procurements. |
Closed – Implemented
AID had previously increased its staff for competition advocacy functions and established a database for contract amendments. In its January 1988 report on competition for fiscal year (FY) 1987, AID reported that it performed a limited analysis of contracting data to identify trends in competitive procurement actions. A more complete analysis of data will be initiated in FY 1988.
|
| U.S. Agency for International Development | The Administrator, AID, should: (1) develop and issue specific guidance on essential elements of adequate statements of work; (2) place greater emphasis on how to prepare scopes during training for project officers and others who prepare and negotiate contracts and monitor contractor performance; and (3) improve the availability of technical assistance, in-house or through qualified contractors, and leadtime to permit the design of well defined scopes. |
Closed – Implemented
AID issued its self-study course, which is intended to aid nonprocurement personnel to learn about the contracting process and determine when it might be appropriate to seek assistance from contracting professionals. The course has been distributed to most overseas missions.
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Topics
Contract modificationsContract performanceContractor personnelCost analysisForeign economic assistanceMonitoringNegotiated procurementOverhead costsProcurementContracting officers