FAA Lacks Adequate Controls to Accurately Track and Award its Sole-Source Contracts

In March 2009, the President issued a memorandum directing the Office of Management and Budget (OMB) to develop and issue Government-wide guidance governing the use and oversight of sole-source contracts. Accordingly, in July 2009 OMB directed all Federal agencies to reduce the amount of dollars obligated on noncompetitive contracts, including sole-source contracts. Sole-source contracts can be used when only one contractor is capable of delivering the goods or services needed and, therefore, it is not feasible to obtain competitive bids. However, these types of contracts are considered high-risk and can result in wasted taxpayer resources, poor contractor results, and inadequate accountability. Since 2009, Congress has required Federal agencies to report annually to the Senate and House Appropriations Committees on their sole-source contracting actions. According to the U.S. Department of Transportation’s (DOT) annual reports to Congress on sole-source contracts, the Federal Aviation Administration (FAA)—which awards more contract dollars annually than any other Operating Administration in the Department—accounted for approximately 65 percent of DOT’s sole-source awards between fiscal years 2008 and 2013. The Office of Inspector General (OIG) audit objectives were to (1) assess FAA’s actions since OMB’s 2009 directive to reduce the use of sole-source contracts, including follow-on contracts to sole-source awards, and (2) determine whether FAA’s practices prior to award of sole-source contracts comply with FAA’s Acquisition Management System (AMS) requirements. OIG reviewed a statistical sample of 34 sole-source contracts from a universe of 377 contracts awarded between fiscal year 2012 and April 2015 to determine whether FAA complied with AMS policy and guidance. The results of the review allowed OIG to project the total estimated value of sole-source contracts in the universe that did not fully comply with key pre-award procurement practices required by AMS.

Language

  • English

Media Info

  • Media Type: Digital/other
  • Edition: Audit Report
  • Features: Appendices; References; Tables;
  • Pagination: 24p

Subject/Index Terms

Filing Info

  • Accession Number: 01603568
  • Record Type: Publication
  • Report/Paper Numbers: ZA-2016-065
  • Files: TRIS, ATRI, USDOT
  • Created Date: Jun 15 2016 8:43AM