Service Contract Inventory FY 2012 Agency Inventory Analysis

1.0 Overview

On November 5, 2010, the Office of Management and Budget (OMB) issued a Memorandum, "Service Contract Inventories", to assist agencies in understanding how contracted services are used in support of mission and operations and to ensure the appropriate utilization of contractors' skills for a balanced workforce. The Equal Employment Opportunity Commission (EEOC) Service Contract Inventory analysis is developed as a part of the Review and Planning Requirements under Section 743 of Division C of the FY 2010 Consolidated Appropriations Act, P.L. 111-117.

As required in the above OMB Memorandum, EEOC prepared an annual inventory of FY 2012 service contracts and analyzed how contracted resources are distributed by function and location across the Commission and within its components. In accordance with section 743(e)(2) of P.L. 111-117, EEOC conducted the required analysis of contracts and information in the inventory to determine if contract labor is being used in an appropriate and effective manner and if the mix of federal employees and contractors in the agency is effectively balanced. The analysis covered the following elements under section 743(e)(2) and Appendix D of the OMB Memorandum dated November 5, 2010, ensuring that--

(i) each contract in the inventory that is a personal services contract has been entered into, and is being performed, in accordance with applicable laws and regulations;

(ii) the agency is giving special management attention, as set forth in FAR 37.114, to functions that are closely associated with inherently governmental functions;

(iii) the agency is not using contractor employees to perform inherently governmental functions;

(iv) the agency has specific safeguards and monitoring systems in place to ensure that work being performed by contractors has not changed or expanded during performance to become an inherently governmental function;

(v) the agency is not using contractor employees to perform critical functions in such a way that could affect the ability of the agency to maintain control of its mission and operations; and,

(vi) there are sufficient internal agency resources to manage and oversee contracts effectively.

2.0 Analysis of FY 2012 Inventory

Based on our review, we have determined that EEOC's contract oversight and management are compliant with federal and agency level statutes and regulations. The Acquisition Services Division (ASD) gathered information from the Program Office Manager and Contracting Officer's Representatives (COR) on the contract vehicles for the critical function under Information Technology (IT) and Telecom-Other IT and Telecommunications services. A summary of the findings of our analysis and the steps we have identified that will strengthen our internal controls over the quality of this data follows.

Table 2-1: Special Interest Function Codes for Analysis

2.1 Personal Services Contracts (Special Interest Function Code R497). There are no personal services contracts in EEOC's FY 2012 Service Contract Inventory.

2.2 Analysis of Special Interest Function Code D399 - IT and Telecom - Other IT and Telecommunications. EEOC reviewed delivery/task orders which were awarded under FAR Part 8 for IT and Telecom-Other IT and Telecommunications services for EEOC's Office of Information Technology (OIT). The majority of the work was performed in two areas under this function code: (1) Enterprise Application Support and (2) Enterprise Operations Support.

Special management attention for functions that are closely associated with inherently governmental functions. Under the EEOC Enterprise Applications Support (EAS) Delivery Order Number (No.) EECDO100141 under GSA Alliant Small Business Government-wide Acquisition (GWAC) Contract No. GS06F0596Z with Advanced Software Systems, Inc. (ASSYST), tasks are managed by a certified Contracting Officer's Representative (COR), in coordination with the EEOC Office of Information Technology (OIT) - Enterprise Applications Branch (EAB) supervisor, or an assigned OIT Project Manager (PM). These tasks are based upon and are within the scope of the Work Orders:

• Document Management System (DMS) Administration, Support, Development, and Maintenance
• Web Site and Application Design, Development and Maintenance
• Accessibility Expert Consulting, Testing, and Technical Support
• Applications Development and Maintenance Support.

Under the EEOC's Enterprise Operations Support (EOS) Delivery Order No. EECDO100153 under GSA's Alliant Small Business GWAC Contract No. GS06F0592Z, awarded to AAC, Inc., tasks issued to contracts are handled through a tasking process, originally issued in 2011 and updated most recently in February 2014 to reflect the EEOC's new ServiceNow IT Service Management system. See attached "OIT Enterprise Operations Support Tasking Process". This tasking process is broken out in three areas: Engineering Project or O&M Task, Incident Response, and Routine Service Request. EOS areas supported by contractors include:

• critical backup and restore for disaster recovery
• maintenance of the e-mail system
• windows servers
• teleconferencing support
• storage area networks supporting the document management system and integrated mission system (IMS) and
• Local and Wide area Networks (LAN and WAN).

2.2.1 Prevention of contractor employees performing inherently governmental functions.

Enterprise Application Support contractors do not direct any Federal employees. The contractor performance is overseen by the COR in coordination with the EAB supervisor or OIT PM. Any new tasks are reviewed to ensure that they are within scope and are not inherently governmental functions; such as: Administering contracts or participating as a voting member on any source selection boards.

Enterprise Operations Support contractors do not direct FTEs. Work assignments are issued through automated processes overseen by IT managers that are in the scope of the EOS contract. In addition, work performed by EOS contractors is overseen by the EOS Work Order Task Manager who reports directly to the EOS COR and the contractor's Program Manager.

2.2.2 Safeguards and monitoring systems in place to ensure that work being performed by contractors has not changed or expanded during performance to become an inherently governmental function.

Enterprise Applications Support contractors perform tasks as agreed upon by the contractor and the EEOC using the above referenced tasking process. They do not assign tasks to Federal employees or oversee work assigned to Federal employees.

Enterprise Operations Support contractors perform duties as assigned through the above referenced tasking process. EOS contractors do not assign tasks to FTEs or oversee work assigned to FTEs.

2.2.3 Critical Function Performance and Agency Control of Mission and Operations.

In OIT, the ratio of Federal employees to Enterprise Applications Support contractors is approximately 5:1.

EOS - All agency projects/tasks, operational support duties, service requests, incidents, and problem investigations are overseen by IT managers. For each area of infrastructure managed directly by EEOC, knowledgeable FTEs are assigned as principle leads.

2.2.4 Agency Resources for Management and Oversight of Contracts.

The Enterprise Applications Support COR oversees contractor assignments, work performance, expenditures, and contract administration.

The EOS COR oversees contractor work and accepts deliverables. In order to ensure better oversight over complex projects, the EOS COR requested, and the ASD director agreed, to institute the role of Government Technical Monitor (GTM) to enable delegated oversight over large and complex acquisitions, including work orders under the EOS contract.

3.0 Identification of Poorly Performed Contracts. EEOC had no poorly performed contracts for Fiscal Year 2012.

4.0 Contracts Considered for Conversion

4.1 Convert to Performance by Federal Employees. No contracts were identified for conversion to performance by Federal employees.

4.2 Convert to Alternative Acquisition Approach. EEOC is in the process of collecting data for a high-level spend analysis to identify requirements in the following areas for the Strategic Sourcing Program: IT support services, expert services, mediation services and contract clerical services.