Accession Number : ADA338600

Title :   Audit Report: Contracted Advisory and Assistance Services Contracts.

Corporate Author : OFFICE OF THE ASSISTANT INSPECTOR GENERAL FOR AUDIT (DOD) ARLINGTON VA SYSTEMS AND LOGISTICS

PDF Url : ADA338600

Report Date : 01 FEB 1991

Pagination or Media Count : 145

Abstract : This is our final report on the Audit of Contracted Advisory and Assistance Services (CAAS) contracts for your information and use. Comments on a draft report were considered in preparing the final report. We made the audit from October 1988 through December 1990 as part of a Government-wide audit of CAAS by the President's Council on Integrity and Efficiency. The primary objective was to determine the adequacy of management controls over CAAS. The audit evaluated the use of sole-source contracts and unsolicited proposals, and whether contract modifications were used to significantly increase the scope and cost of the original contract. We also examined the process for deciding whether work was to be performed in-house or by CAAS, and the cost-effectiveness of contracting for the services. We reviewed the internal controls applicable to the identification, reporting, and procurement of CAAS. The audit included a random sample of 407 contract actions that were reported in the Federal Procurement Data System during FY 1987. DoD reported expenditures of $2.05 billion for CAAS and $1.8 billion for Contractor Support Services for FY 1987. The audit showed that management controls over CAAS needed improvement. Although the acquisition of CAAS through sole- source contracts or unsolicited proposals were generally justified, contract modifications more than doubled the cost from the original estimate on 22 percent of the contracts. The audit showed that additional management attention was needed to ensure that CAAS efforts were properly identified and reported, that long-term relationships with contractors were justified and not based on favoritism, and that competition was maximized in the procurement of CAAS.

Descriptors :   *MANAGEMENT PLANNING AND CONTROL, *FINANCIAL MANAGEMENT, *AUDITING, GOVERNMENT PROCUREMENT, INFORMATION SYSTEMS, COST EFFECTIVENESS, CONTRACT ADMINISTRATION, LONG RANGE(TIME), DATA ACQUISITION, DIRECTIVES, ADVISORY ACTIVITIES, COST BENEFIT ANALYSIS.

Subject Categories : Economics and Cost Analysis
      Personnel Management and Labor Relations

Distribution Statement : APPROVED FOR PUBLIC RELEASE