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G20050723 - Memo S. Dingbaum Fm T. Hagan Review of NRCs Contract Closeout Process (OIG-05-A-16)
	ML060970594
Person / Time
Issue date:	04/16/2006
From:	Hagan T; Office of Administration
To:	Dingbaum S; NRC/OIG
	Cucura J, ADM/DC, 415-6538
Shared Package
ML060970589	List: ML060970594; ML060970608; ML060970629;
References
	G20050723, OIG-05-A-16, W200500342, W200500343, W200500344, W200500345
	Download: ML060970594 (3)
	v • d • e

April 14, 2006 MEMORANDUM TO:

Stephen D. Dingbaum Assistant Inspector General for Audits FROM:

Timothy F. Hagan, Director /RA/

Office of Administration

SUBJECT:

REVIEW OF NRCS CONTRACT CLOSEOUT PROCESS (OIG-05-A-16)

This is to provide you with the status of the Office of Administrations (ADM) actions in response to Recommendations 1 through 4 of the subject report.

Recommendation 1 Revise Management Directive (MD) 11.1 and the internal contract closeout policy to include Federal Acquisition Regulations (FAR) contract closeout time standards.

Status The FAR contract closeout time standards were incorporated into the revised Division of Contracts (DC) Instruction No. 92-08 entitled, Contract Closeout Procedures, on January 31, 2006 (Enclosure 1).

The FAR contract closeout time standards were added to the MD 11.1, NRC Acquisition of Supplies and Services on March 29, 2006 (Enclosure 2).

Recommendation 2 Implement, sign, and date the internal contract closeout policy.

Status Completed January 31, 2006 (See Enclosure 1).

CONTACT: Mary Lynn Scott, ADM/DC (301) 415-7305

S. Dingbaum Recommendation 3 Revise the performance metric to address compliance with FAR contract closeout time standards.

Status FAR contract closeout time standards were incorporated in the ADMs fiscal year (FY) 2006 Operating Plan on October 13, 2005 (Enclosure 3). DC also incorporated a target for reducing contract closeouts that are out of standard in its latest update to the FY 2006 Operating Plan (Enclosure 4). This target will be reassessed annually.

DCs success in meeting these targets depends in large part on its ability to obtain timely audit information for contracts in closeout. To that end, on January 31, 2006, DC requested OIG assistance in obtaining closeout audits for 32 contracts and will continue to work with OIG to identify the source of audits required for closeout and to obtain assistance as necessary in assuring timely receipt of required audits.

Recommendation 4 Develop and implement a process to monitor compliance with agency deobligation policy.

Status Revised DC Instruction 92-08 contains a process to monitor compliance with agency deobligation policy. The process includes generation of periodic reports for use by DC branch chiefs in monitoring deobligation of excess funds.