U.S. Environmental Protection Agency	08-P-0186
^	% Office of Inspector General	June 30 2008
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¦ At a Glance
Catalyst for Improving the Environment
Why We Did This Review
We performed this review to
determine if the U.S.
Environmental Protection
Agency's (EPA's) award of
noncompetitive contracts was
appropriate. Specifically, we
determined if these contracts
were awarded according to
federal regulations and EPA
policy.
Background
One of the goals of federal
contracting is to promote
competition when buying
goods and services. In limited
circumstances, however,
federal agencies are authorized
to award contracts without
providing for full and open
competition. The Federal
Acquisition Regulation (FAR)
has established specific
procedures for agencies to
follow under these
circumstances. The Office of
Acquisition Management,
within the Office of
Administration and Resources
Management, is responsible
for EPA's contracting
activities.
For further information,
contact our Office of
Congressional and Public
Liaison at (202) 566-2391.
To view the full report,
click on the following link:
www.epa.aov/oia/reports/2008/
20080630-08-P-0186.pdf
EPA Can Improve the Awarding of
Noncompetitive Contracts
What We Found
While EPA's most recent competition report made several recommendations to
strengthen EPA's competition practices, additional measures would help to further
improve compliance with the FAR and EPA policy. For example, we identified
Justifications for Other than Full and Open Competition (JOFOCs) that were not
approved at the appropriate level, including two of seven that were not approved
by the Competition Advocate. Eight of 15 JOFOCs we reviewed were not
prepared in accordance with federal requirements. FAR Part 6 establishes the
approval requirements for JOFOCs and identifies their required elements. These
issues occurred because either EPA did not have effective internal controls, or
because existing controls were not followed. Without the required approvals for
the JOFOCs and without the required elements, EPA increases the risk that
inappropriate sole source procurements will be awarded.
We also identified two noncompetitive procurements in which market research
could have been improved. FAR Part 10 requires federal agencies to conduct
market research appropriate to the circumstances. Improved market research may
lead to competitive acquisitions, allowing potential offerors the opportunity to
compete for contracts. By increasing competition, the government saves taxpayer
money, improves contractor performance, and curbs fraud.
What We Recommend
We recommend that the Assistant Administrator for the Office of Administration
and Resources Management:
•	Document in each contract file the circumstances why the JOFOC was
not approved at the appropriate level and the corrective actions taken.
•	Revise the Approval Matrix in the Acquisition Handbook to require that
contracting staff one level above the Contracting Officer review and
approve all JOFOCs to ensure they include required elements.
•	Ensure that internal controls designed to identify JOFOCs for sole source
procurements over $550,000 requiring the Competition Advocate's
approval are developed and properly implemented.
The report contains other recommendations to strengthen EPA's controls. EPA
agreed with our recommendations and provided adequate corrective action plans.

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