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Civilian Agency Procurement: Improvements Needed in Contracting and Contract Administration

GGD-89-109 Published: Sep 05, 1989. Publicly Released: Oct 27, 1989.
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Highlights

Pursuant to a congressional request, GAO examined 87 contracts worth a total of about $1.4 billion at the Departments of Education, Energy, Health and Human Services, and Housing and Urban Development, focusing on how well the agencies administered large contracts.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of Federal Procurement Policy The Administrator, Office of Federal Procurement Policy (OFPP), should encourage civilian agencies to strengthen their contracting practices. Specifically, OFPP should work together with the heads of civilian agencies and initiate a concerted effort to improve civilian agency contracting and contract administration. Weaknesses that should be addressed by this effort include: (1) planning contracts; (2) writing specifications and statements of work; (3) using cost-plus-fixed-fee contracts for repetitive requirements; (4) hindering contractor performance by failing to comply with contract terms; (5) exceeding authority when program officers direct contractors to do work not covered by the contract; (6) extending contract completion dates because of poor planning for replacement contracts; (7) modifying contracts that have expired; and (8) monitoring contracts and communication between program and contracting officers.
Closed – Implemented
On March 15, 1991, OFPP issued a policy letter to civilian agency procurement executives reemphasizing the need for contract planning; clearing defining requirements in specifications and statements of work; complying and adhering to contract terms; and proper use of contract modifications. The letter also provided contract administration guidelines for civilian agencies.

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Topics

Contract administrationContract modificationsContract oversightContract termsCost overrunsCost plus fixed fee contractsDefective solicitationsFederal agenciesInternal controlsIrregular procurement