ML20249B404
| ML20249B404 | |
| Person / Time | |
|---|---|
| Issue date: | 06/10/1998 |
| From: | NRC OFFICE OF THE INSPECTOR GENERAL (OIG) |
| To: | |
| Shared Package | |
| ML20249B405 | List: |
| References | |
| OIG-98A-03, OIG-98A-3, NUDOCS 9806230048 | |
| Download: ML20249B404 (16) | |
Text
{{#Wiki_filter:-___ OFFICE OF THE INSPECTOR GENERAL U.S. NUCLEAR REGULATORY COMMISSION PROCUREMENT STREAMLINING MEASURES IMPLEMENTED: IMPROVEMENTS CAN BE MADE OlG/98A-03 June 10,1998 AUDIT REPORT gREG9
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Procurement St eamhning Measures implemented: Improvements Can Be Made l REPORT SYNOPSIS As a result of Vice President Gore's National Performance Review (NPR), selected Federal ager.cies, including the U.S. Nuclear Regulatory Commission (NRC), were designated as procurement reinvention laboratories in 1993. NRC used its NPR laboratory status to streamline its procurement process in an effort to reduce procurement lead times and remove some of the burdensome aspects of the contracting process. The purpose of our review was to assess the efficiency and effectiveness of NRC's procurement streamlining process.
. Our review found that streamlining appears to have had a positive effect on NRC's procurement process. Almost all fiscal year 1997 procutements used one or more streamlining measures. In addition, NRC's Contract Tracking System reports a reduction in procurement lead times when streamlining measures were applied. We also found that the agency could take steps to improve the streamlining data it I tracks. NRC accounts for the time saved using streamlining measures primarily by applying estimated savings criteria that were established in 1994. Our review found that NRC has not reassessed these savings since that time. We believe the agency I should periodically reassess its estimated savings to ensure that the reported benefits are accurate and that tracking them remains worthwhile.
I I olG/98A-03 p,g,y s
Procurement Streamlining Measures implemented: Improvements Can Be Made TABLE OF CONTENTS 1 REPORT SYNOPSIS . . . .i INTRODUCTION ..... .. . . . . . 1 l BACKGROUND . .. . .. .. . 1 l FJNDINGS . . . . .... . .. 2 CONCLUSION . . . .. .. . . . . . . .. 3 RECOMMENDATION . .. . . .. . 3 AGENCY COMMENTS ... ... . . 4 APPENDICES I Objective, Scope, And Methodology 11 Streamlining Measures ill Agency Comments I IV Major Contributors To This Report V Glossary: Office of the Inspector General Products OlG/98A-03
Procurement Streamhning Measures implemented: Improvements Can Be Made I INTRODUCTION in 1993, at the request of the U.S. Nuclear Regulatory Commission (NRC), Vice President Gore's National Performance Review")(NPR) designated the NRC as a I procurement reinvention laboratory. NPR defines reinvention laboratories as:
. . . innovative organizations or activities that are established to test or prototype new
- reinventing govemment* initiatives. The reinvention laboratories are empowered to begin experimenting with radical new ways of doing business, and share their ideas, successes andlessons across govemment.
As a laboratory, NRC developed and implemented streamlining measures for the I purpose of reducing contract lead times and removing some of the burdensome aspects of the competitive contracting process. The objective of our review was to I evaluate the efficiency and effectiveness of the streamlining process. See Appendix l for more details on our objectNe, scope, and methodology. BACKGROUND in 1994, NRC modified its procurement process to incorporate the use of 22 streamlining measures which could result in time saved in completing procurement i milestones. The Division of Contracts and Property Management (DCPM), Office
)
of Administration, assigned estimated savings, stated in days, to each streamlining measure. The 22 streamlining measures and their estimated savings are described in Appendix II. While most of the streamlining measures are allowable under Federal Acquisition Regulation (FAR), one measure requires a FAR waiver from the Office of Federal Procurement Policy (OFPP) and the Small Business Administration. As a result of the waiver, NRC is not required to advertise its technical assistance /research I contracts in the Commerce Business Daily. NRC requests a renewal of the waiver on a biannual basis. NRC program offices, such as the Office of Nuclear Reactor Regulation, Office of Nuclear Regulatory Research, and Office of Nuclear Material Safety and Safeguards, assign staff to participate in competing the procurement and evaluating ,_I i i 8 Currently referred to as the National Partnership for Reinventing Government. OlG/98A43 Page 1 'I t E
Procurement Streamlining Measures implemented: Improvements Can Be Made the resulting proposals *. DCPM also assigns a contracting officer and contract t"ecialist to each procurement. The contracting officer coordinates with the contract specialist to ensure that all possible streamlining measures are considered. Streamlining measures are discussed by the DCPM contract specialist and the program office representatives when procurement milestones are established. At that time, the contract specialist will recommend the use of appropriate streamlining measures to the program office representatives. The agreed upon streamlining measures are incorporated into the procurement milestones. NRC has been active in overall Federal procurement streamlining initiatives. NRC participated in several OFPP procurement streamlining pilot projects and contributed to OFPP's procurement best practices guides. For example, NRC participated in the Procurement Innovation Working Group and contributed to the OFPP-sponsored " Guidelines for the Use of Oral Presentations." NRC has also contributed to OFPP's "A Guide to Best Practices for Past Performance" and "A Guide to Best Practices for Contract Administration." FINDINGS NRC appears to have made progress in reducing procurement lead times and , removing some of the burdensome aspects of contracting. In fiscal year (FY) 1997, j NRC issued 37 new contract awards totaling over $18 million. Of those totals,33 contracts totaling over $17 million used one or more streamlining measures. , According to DCPM's Contract Tracking System, total savings as a result of applying streamlining measures to those 33 FY 1997 contracts totaled 1,333 days, averaging about 40 days per procurement. However, NRC could not support the estimated savings assigned to each streamlining measure. Therefore, we could not verify the exact number of total days saved as a result of streamlining. This demonstrates NRC's need to reevaluate the estimated savings for each streamlining measure to ensure that the total savings reported are accurate and that tracking them remains worthwhile. DCPM has not reassessed its estimated savings since developing them in 1994. g At that time, DCPM assigned estimated savings to each of the 22 streamlining E measures for the purpose of tracking streamlining savings for each procurement. For example, awarding a contract without discussions is estimated to save 25 days *. However, DCPM did not document the basis for these estimated savings 2 As members of the Source Evaluation Panel (SEP). 1 3 Estimated savings for each streamlining measure are shown in Appendix II. 4 OlG/98A 03 Page 2
Procurement Streamhning Measures implemented: Improvements Can Be Made and has not revisited them to ensure that they are accurate or that tracking them is still beneficial. Although DCPM encourages its contract specialists to use actual time savings when reporting streamlining results, we found that estimated savings are almost exclusively used in lieu of actuals. DCPM told us that it plans to continue tracking streamlining savings and would like for the savings to be as accurate as possible. In addition, several streamlining measures which were innovative in 1994 are now common practice. For example, two streamlining measures promote sharing documents electronically. Currently, e-mail and an agency wide network make the sharing of documents within program offices and between program offices and DCPM a common occurrence. We discussed this with DCPM officials and they agreed that these streamlining measures should no longer be considered streamlining and further tracking is probably unnecessary. Further, there are other streamlining measures that produce no noticeable savings. Examples include the streamlining of the determinations and finding memoranda which only accounted for 4.5 of the 1,333 days saved through streamlining in FY 1997. We believe DCPM should review all of its streamlining measures to ensure that tracking them remains worthwhile. CONCLUSION We found that NRC has benefited from its procurement streamlining program. l However, NRC t'as not reassessed the estimated savings assigned to each I streamlining measure since 1994. Therefore, NRC cannot be certain whether the savings it is recording are accurate or that tracking them is beneficial. RECOMMENDATION To increase the efficiency and effectiveness of NRC's procurement streamlining efforts, we recommend that DCPM reassess the streamlining measures to ensure that estimated savings are accurate and that tracking them is worthwhile. l OlG/98A 03 Page 3
I Procurement Streamlining Measures implemented: Improvements Can Be Made AGENCY COMMENTS l On May 29,1998, the Deputy Executive Director for Management Services g responded to our draft report and agreed with the report's recommendation. 5 I I I I I l i
,i Ii OlG/98A-03 Page 4 I
Appendix 1 Procurement Streamlining Measures implemented: Improvements Can Be Made OBJECTIVES, SCOPE, AND METHODOLOGY The objective of our review was to evaluate the efficiency and effectiveness of the l U.S. Nuclear Regulatory Commission's (NRC) procurement streamlining process. We focussd our review on fiscal years 1996 and 1997 procurement which incorporated one or more sheamlining measures. l l We held interviews and discussions with NRC personnel responsible for setting procurement policy and facilitating the procurement process. We also interviewed I program office personnel who participated in streamlined procurement. In addition, we met with an Office of Federal Procurement Policy representative to discuss l procurement streamlining best practices'throughout the Government. We also reviewed National Performance Review information regarding other agencies' procurement reinvention efforts. We reviewed NRC's management controls regarding the application of streamlining measures and the tracking and reporting of streamlining measure usage. To perform our review of controls, we interviewed management and staff from the Division of Contracts and Property Management and reviewed pertinent documentation. We conducted our review at NRC Headquarters from December 1997 through March 1998, in accordance with generally accepted Government auditing standards. l l olG/98A 03 Page 1 of 1
i i l Appendix 11 Procurement Streamlining Measures Implemented: Improvements Can Be Made l , i Streamlining Measure Description Estimai l g ed Time l3 Saved by Use
- 1. Electronic transmittal Statement of Work is e-mailed to the 4 days of the Statement of contract specialist, allowing them Work. direct access to the document.
- 2. Use of commercial The Statement of Work is written for 1 day product description. the purchase of a product or service I using a commercial product description.
- 3. Delegation of authority Procurement authority between 5 days to the Director, DCPM. $750,001 and $3,000,000 has been delegated to the Director, DCPM.
I 4. The Justification for Other than Full and Open Competition This authority is delegated for technical assistance procurement between $2,501 and $100,000, or for 3 days (JOFOC) authority is other procurement between delegated to the $10,000 and $100,000. DCPM Branch Chief.
- 5. Waiver of the The CBD notice can be waived for 5 days Commerce Business technical assistance or research Daily (CBD) notice. procurement.
- 6. Set deadline for The solicitation contains a deadline 14 days proposer's questions. for proposer's questions prior to the I due date for proposals which will normally permit questions to be answered without extending the solicitation period.
- 7. Reduce proposal The solicitation period is set at less 10 days preparation time. than the period of time normally I required by the Federal Acquisition Regulation (FAR). This is permissible under the procurement reinvention laboratory for procurement not advertised in the CBD.
olG/98A 03 Page 1 of 3
1 I' Appendix 11 Procurement Streamlining Measures Implemented: Improvements Can Be Made j Streamlining Measure Description l Estimat i ed Time l Saved , by Use
- 8. Less than 3 Source Less than 3 persons are formally part 10 days Evaluation Panel of the SEP, but they may consult with (SEP) technical additional advisors.
members used in developing the Request for g Procurement Action. E
- 9. Simplified evaluation The evaluation criteria has been 0.5 days criteria using past simplified, and/or past performance performance. is used as criteria.
- 10. Limit the number of The number of pages in the proposal 4 days g pages in the proposal. has been limited to less than 100 E pages.
- 11. Prohibit foldouts, Folders, brochures, and videos have 1 day sales brochures, been prohibited from the submission.
videos, etc.
- 12. Use of commercial Submittals are evaluated based on a 1 day product description. commercial product description.
- 13. Limit competition to This is available for only competitive 1.5 days known sources. research and technical services procurement.
- 14. Oral proposals. Oral, not written, proposals are used. 5 days I
- 15. Waive audit The contracting officer waives the 15 days requirements for audit requirement previously procurement over mandatory for all firms with which
$500,000. NRC negotiates.
- 16. Award without Formal discussions with the 25 days discussions. proposer (s) are not held between receipt of the proposal (s) and award.
I ! 17. Less than 3 SEP Less than 3 SEP technical members 10 days technical members for are used to evaluate the proposals. procurement in E E excess of $500,000. , olG/98A-03 Page 2 of 3 I
Appendix il Procurement Streamlining Measures implemented: Improvements Can Be Made Streamlining Measure Description Estimat ed Time Saved by Use
- 18. Simplified evaluation The proposal evaluation criteria has 1.5 days criteria - past been simplified, and/or past performance. performance is used.
- 19. Electronic The Final Evaluation Report is e- 3 days coordination of the mailed, allowing the contract Final Evaluation specialist direct access to the Report. document during coordination.
- 20. Abolition of the A determinations and findings 0.125 determination and memorandum is no longer required days findings for cost type for cost type contracts, contracts.
- 21. Delegation of Procurement authority between 5 days authority to the DCPM $500,001 and $750,000 is delegated Branch Chief. to the DCPM Branch Chief.
- 22. Simplified if a contract is negotiated, a note to 0.125 determinations and the file suffices in lieu of a days findings for other than determinations and findings sealed bid contracts. memorandum.
I OlG/98A 03 Page 3 of 3 I
Appendix fil Procurement Streamlining Measures implemented: Improvements Can Be Made s>R RE00 y *' t UNITED STATES
; , NUCLEAR REGULATORY COMMISSION o
- WASHINGTON, D.C. 2055M)o01
%Q%,.. / May 29, 1998 I
MEMORANDUM TO: Thomas J. Barchi Assistant inspector General for Audits Office of the Inspector General FROM: Patricia G. Norry w / 1'/ Deputy Executive Director for Managemenf$,fices e
SUBJECT:
DRAFT AUDIT REPORT - PROCUREMENT STREAMLINING MEASURES IMPLEMENTED: IMPROVEMENTS CAN BE MADE I This responds to your M y :2,1998, memorandum transmitting the subject draft report. I am pleased with your conclusion that NRC has benefited from its procurement streamlining program. With respect to your specific recommendation, I submit the following: Recommendation To increase the efficiency and effectiveness of NRC's procurement streamlining efforts, we recommend that DCPM reassess the streamlining measures to ensure that estimated savings are accurate and that tracking them is worthwhile. Resoonse Agree. Completion date: July 24,1998. I I I OlG/98A-03 p g.1 og g
Appendix IV Procurement Streamlining Measures implemented: Improvements Can Be Made MAJOR CONTRIBUTORS TO THIS REPORT I Corenthis B. Kelley Team Leader Judy L. Leonhardt Senior Auditor I George T. Pourchot Audit Manager lI I I OlG/98A-03 Page 1 of 1 l
I Appendix V Procur: ment Strnmhning M;mur:s impi mentrd: Improv:ments Can Be Made I GLOSSARY: OFFICE OF THE INSPECTOR GENERAL PRODUCTS INVESTIGATIVE
- 1. INVESTIGATIVE REPORT- WHITE COVER An investigative Report documents pertinent facts of a case and describes available evidence relevant to allegations against individuals, including aspects of an allegation not substantiated.
l Investigative reports do not recommend disciplinary action against individual employees. ! Investigative reports are sensitive documents and contain information subject to the Privacy Act restrictions. Reports are given to officials and managers who have a need to know in order to l properly determine whether administrative action is warranted. The agency is expected to advise the OlG within 90 days of receiving the investigative report as to what disciplinary or other action has I 2. been taken in response to investigative report findings. EVENTINQUIRY- GREEN COVER The Event inquiry is an investigative product that documents the examination of events or agency actions that do not focus specifically on individual misconduct. These reports identify institutional weaknesses that led to or allowed a problem to occur. The agency is requested to advise the OlG I of managcrial initiatives taken in response to issues identified in these reports but tracking its recommendations is not required.
- 3. MANAGEMENT IMPLICA TIONS REPORT (MIR) - MEMORANDUM MIRs provide a " ROOT CAUSE" analysis sufficient for managers to facilitate correction of problems and to avoid similar issues in the future. Agency tracking of recommendations is not required.
AUDIT
- 4. AUDIT REPORT- BLUE COVER \
l An Audit Report is the documentation of the review, recommendations, and findings resulting from I an objective assessment of a program, function, or activity. Audits follow a defined procedure that allows for agency review and comment on draft audit repee.s. The audit results are also reported in the OlG's " Semiannual Report" to the Congress. Tracking of audit report recommendations and agency response is required.
- 5. SPECIAL EVALUA TION REPORT- BURGUNDY COVER A Special Evaluation Report documerits the results of short-term, limited assessments. it provides an initial, quick response to a question or issue, and data to determine whether an in-depth independent audit should be planned. Agency tracking of recommendations is not required.
REGULATORY
- 6. REGULATORY COMMENTARY- BROWN COVER Regulatory Commentary is the review of existing and proposed legislation, regulations, and policies I so as to assist the ag:ncy in preventing and detecting fraud, waste, and abuse in programs and operations. . Commentaries cite the IG Act as authority for the review, state the specific law, regulation or policy examined, pedinent background information considered and identifies OlG l
l 3 concems, observations, and objections. Significant observations regarding action or inaction by the g agency are reported in the OlG Semiannual Report to Congress. Each report indicates whether a response is required. Pi !
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