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s	U.S. Environmental Protection Agency	2007-P-00037
£ %M \ Office of Inspector General	September 20,2007
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%; At a Glance
Catalyst for Improving the Environment
Why We Did This Review
The objectives of our audit
were to determine whether the
U.S. Environmental Protection
Agency (EPA) implemented
the agreed-upon corrective
actions from a previous Office
of Inspector General (OIG)
report on Federal Supply
Schedule (FSS) orders. We
also sought to determine
whether EPA is following
established procedures in
awarding FSS orders.
Background
In September 2003, we issued
Audit Report No. 2003-P-
00015, EPA Can Improve Use
of Federal Supply Schedules
When Procuring Services.
EPA was in general agreement
with the report, and agreed to
implement several
recommendations to improve
the process for ordering from
the FSS. Ordering agencies,
such as EPA, can issue orders
directly to contractors that are
on the schedules approved by
the General Services
Administration.
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.qov/oiq/reports/2007/
20070920-2007-P-00037.pdf
Progress Made in Improving Use of Federal Supply
Schedule Orders, but More Action Needed
What We Found
EPA implemented all but one of the recommendations in our original report. As a
result of this previous report, EPA:
•	Published guidance in its Contract Management Manual for issuing orders
against the FSS.
•	Provided training to its contracting officers on the use of the General
Services Administration's Schedule, market research, and Performance-
Based Service Acquisitions.
•	Is acquiring a new, commercial off-the-shelf Federal acquisition system
for Agency-wide use over the Internet that will replace the Agency's
current systems.
Regarding the one recommendation not implemented, EPA did not provide
samples of sole source justifications to program offices as agreed. Agency
officials said this occurred due technology challenges in sharing files. However,
posting justifications on EPA's intranet should resolve the issue.
During our review, we noted other areas that require attention. By ensuring that
adequate market research is conducted, EPA can increase competition. Also,
Independent Government Cost Estimates need improvement to ensure EPA does
not overpay for services and supplies acquired via the FSS.
What We Recommend
We recommend that the Assistant Administrator for Administration and Resources
Management provide examples on EPA's intranet of adequate justifications for
limiting competition. We also recommend that the Assistant Administrator
emphasize Quality Assessment Plan requirements for evaluating: the effectiveness
of market research, justifications for limiting competition, development of
Independent Government Cost Estimates, and the use of the FSS order checklist.
Further, we recommend that Office of Acquisition Management market the
benefits of online procurement tools to contracting staff. EPA agreed with all of
our recommendations and plans to implement the corrective measures we
proposed.

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