OFFICE OF AUDITS
CONTRACTS, GRANTS, AND INFRASTRUCTURE DIVISION
Audit of Department of State Efforts To Promote Competition for Overseas Construction Projects
What OIG Found
The Department took steps to promote competition related to construction contracts in accordance with federal law and Department policy but did not develop a formal process for its efforts. In addition, the Department complied with requirements of the Omnibus Diplomatic Security and Antiterrorism Act of 1986 and generally promoted subcontracting opportunities for small businesses. However, neither OBO nor AQM fully complied with the acquisition planning and market research requirements in the Federal Acquisition Regulation (FAR) and Department guidance. Specifically, the acquisition planning documentation for the eight selected NEC and NCC projects did not describe how competition would be sought, promoted, and achieved during the acquisition planning process. Nor did the acquisition plans address the extent and results of the market research and indicate its impact on the various elements of the plan in accordance with the FAR. Furthermore, OIG found that the Department did not use “sources sought” notices in advance of prequalification solicitations.
OIG found that the deficiencies identified with acquisition planning and market research occurred, in part, because AQM management did not require compliance with the acquisition planning guidance outlined in AQM Memorandum 15-10. In addition, OBO and AQM did not develop and implement a formal process for executing acquisition plans and market research procedures to help ensure consistent application of the competition requirements. As a result of these deficiencies, the Department missed opportunities to expand its pool of potential construction contractors. Between October 1, 2016, and September 30, 2021, 14 (70 percent) of 20 NEC and NCC contracts awarded by AQM on behalf of OBO were awarded to one contractor. Until the deficiencies are addressed, the Department will not be in full compliance with the FAR and Department acquisition policy and will continue to miss opportunities for increased competition that could enhance the Department’s ability to obtain quality construction services at reasonable prices.
Original source can be found here.
