Contract Performance

Contract Performance

Introduction

The report 'Better Controls needed in reviewing selection of in-house or contract of performance of support activities' was submit by the Controller General of the United States to the Speaker of the house of representatives and the president of the senate as an evaluation and a suggestion to improve support activities' contract performance by the Department of Defense (DOD). The report highlights a number of problems highlighted by the General Accounting Office (GAO), which also gave recommendations for the problems and lacking related to the support activities' contract performance (Department of Defense, 1972). This paper summarizes the report, with particular attention to the issue of contract performance. In addition to this the regulatory provisions (FAR) pertaining to contract performance especially those that are related to the issue which is being discussed in the report are analyzed.

Discussion

This paper before analyzing the report and evaluating it against the regulatory provisions (FAR) that relate to the particular contract performance issue of the report requires a brief description of performance contracting along with a detailed summary of the report being analyzed and evaluated.

Performance Contracting

Performance contracting is a process that permits companies to investigate alternatives for increasing utility efficiency or exploring innovative educational reform initiatives without bearing the full cost of those endeavors. Scarce resources and the public's increased emphasis on outcomes and accountability prompted government agencies, such as the United States Department of Defense (DOD), to explore the applicability of performance contracting in the 1960s. Tests and other measurement instruments used to evaluate achievement in performance contracting prove challenging and in some cases are inadequate, depending on instrument selection and interpretation.

Two critical elements of performance contracting involve completing a needs assessment and designing the evaluation. Although additional components vary depending on organizational context and statutory requirements, the list generally includes a request for proposals (RFP), a contract, and activities commonly associated with performance measurement or program evaluation (Hansen, 1993).

Overview of the report

The report based on five chapters discusses some key issues, highlights a number of problems that need to be addressed and also gives recommendations on how to better address these issues or to solve these problems. The digest at the start of the report gives the overview of the budget allotted to the Department of Defense (DOD) to provide its installations along with the industrial and commercial services and products. The policies as explained in the Office of management and Budget Circular No. A-76 requires all government agencies to maintain an inventory. This inventory is then reviewed/audited by the General Accounting Office (GAO). The findings and conclusion as mentioned in the section being discussed found out that the inventory management has been ineffective and the deficiencies comprised of:

Unsupported justifications;

Significant functions not reviewed;

Reviews not completed on schedule;

Areas of significant potential savings not reviewed;

Activities included not required by Circular A-76, and

Activities not included in the program.

The section then lists down a few recommendations and suggestions for the secretary of defense, along with some policy actions and unresolved issues. The later part provides the affairs ...