Controls Over Consulting Service Contracts at Federal Agencies Need Tightening

Federal agencies spend between $1 billion and $2 billion annually on consulting services contracts to obtain a variety of goods and services. Proper use of consulting services is a normal, legitimate, and economical way to improve Government services and operations, and agencies must continue to have the option to use consulting services where appropriate. Responding to Presidential and congressional concern, the Office of Management and Budget (OMB) issued a bulletin to all executive agencies to better control and report the use of consulting services. In spite of this new guidance, a GAO review of 111 contracts, valued at $19.9 million, in 6 agencies, revealed that little substantive improvement has been made.