Memorandum

To: Assistant Directors for Administration

Director, National Business Center

From: Debra E. Sonderman, Director

Office of Acquisition and Property Management and

Senior Procurement Executive

Subject: Acquisition and Financial Assistance Management Review Template

The attached template is** mandatory** for conducting regional and
headquarters/service center acquisition and financial assistant
management reviews, which began with the FY 2007 reporting cycle. It is
based on the Government Accountability Office's (GAO) *Framework for
Assessing the Acquisition Function at Federal Agencies* (September
2005). The framework provides a top-down approach to management and
control reviews and solidly supports the requirements of Office of
Management and Budget Circular A-123, Management Responsibility for
Internal Control.

The template is designed to assist reviewers through the review process
and has been revised based on bureau comments from the FY07 review
cycle. The template provides a standard reporting format that can be
used to prepare draft and final reports. The template will be posted to
the Office of Acquisition and Property Management website
([<http://www.doi.gov/pam/acquisition.html>]{.underline}). We welcome
your comments on the template and framework-based reviews, and hope that
you will find them thorough and useful in identifying and mitigating
areas of risk.

Please provide your comments to Melodee Stith, Associate Director,
Acquisition and Financial Assistance, who can be reached on
202-208-5830.

Attachment

cc: Director, Office of Financial Management

Bureau Audit Liaisons

Acquisition Managers' Partnership

bcc: PAMrdgfile/subjfile:TMARTINEZ:tm:sgw:11/20/2007:O:\\\\ICR
Functional Reviews\\FY08:Acquisition Review Template.doc

**Acquisition and Financial Assistance **

**Management Review **

**United States Department of the Interior **

**\[Bureau/Office\] **

**\[Bureau/Office Region Reviewed\] **

**United States **

**Department of the Interior **

**\[Bureau/Office\] **

**\[Date of Report Issuance\] **

**TABLE OF CONTENTS **

**Acknowledgement Page **

**Executive Summary Page **

**Summary Ratings by Framework Component Page **

**Bureau and/or Region Acquisition Profile Page **

**Assessment Observation Summary Records Pages **

**Summary of Recommendations Pages **

**Assessment Approaches/Review Methodology Page **

**Appendix **

**Acquisition Data Profiles Appendix **

**ACKNOWLEDGEMENT **

The following acquisition management review (AFAMR) was announced by
memorandum to \[identify\] from \[identify\] on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. An on-site review was conducted in
\[identify location\] during the week of \[identify period in which
on-site review was conducted\] by the following Bureau/Office staff:

An exit briefing providing preliminary findings was held between the
review team and \[identify\] on \[date\].

The review team gratefully acknowledges the support provided to it
throughout the review by \[identify Bureau/Office/Regional management,
and contracting communities, etc.\].

**EXECUTIVE SUMMARY **

In this section, please provide a brief one to one-and-half page summary
of the overall findings of the review and some overall corrective
actions, as appropriate. The summary must be concise and findings
discussed in terms of the broad framework categories. For example, for
acquisition, highlight any major findings in the following four areas:

-   Organizational Alignment and Leadership;

-   Policies and Processes;

-   Human Capital; and

-   Knowledge and Information Management

Just a sentence or two describing your findings in each area will be
sufficient to give reviewers a "snapshot" of what you looked at; what
you found; and any suggested corrective action recommendations, and/or
commendations, etc. that you have to offer.

**SUMMARY RATINGS BY FRAMEWORK COMPONENT **

**[Rating Key]{.underline}: **

**Blue = **Superior performance: Best practice for effectiveness,
efficiency, and compliance.

Green = Satisfactory performance: Function operates effectively,
efficiently, and in a compliant manner. Reasonable assurance exists that
internal control objectives are being achieved.

Yellow (Yellow) = Conditions exist that affect function's effectiveness,
efficiency and/or compliance, and overall achievement of internal
control objectives.

Red = Overall function lacks effectiveness and efficiency. Significant
level of risk to successful operations. Little reasonable assurance that
internal control objectives are being achieved.

**Acquisition Rating **

+------------------------------------------------+
| **Organizational Alignment **                  |
|                                                |
| **and Leadership \[Identify Color\] **         |
+------------------------------------------------+
|                                                |
+------------------------------------------------+
| **Policies and Processes **                    |
|                                                |
| ** \[Identify Color\] **                       |
+------------------------------------------------+
|                                                |
+------------------------------------------------+
| **Human Capital **                             |
|                                                |
| ** \[Identify Color\] **                       |
+------------------------------------------------+
|                                                |
+------------------------------------------------+
| **Knowledge and **                             |
|                                                |
| **Information Management \[Identify Color\] ** |
+------------------------------------------------+
|                                                |
+------------------------------------------------+

**BUREAU and REGION ACQUISITION PROFILE **

In the following section, provide a brief overview of the bureau, its
mission, and its overall acquisition transaction activity. This sets the
context for your regional office review. For example:

Established by the Act of August 25, 1916 (39 Stat. 535; 16 U.S.C. 1, 2,
3, and 4), commonly referred to as the National Park Service Organic
Act, the National Park Service's (NPS or Service) mission is to:

Conserve unimpaired the natural and cultural resources and values of the
National Park System for the enjoyment, education, and inspiration of
this and future generations. The National Park Service cooperates with
partners to extend the benefits of natural and cultural resource
conservation and outdoor recreation throughout this country and the
world. (Part 145, Chapter 1, Departmental Manual (DM))

Annually, there are an estimated 271 million visits to NPS's 390 units
which include parks, monuments, seashore sites, battlefields and other
cultural and recreational sites. Its FY 2006 budget, as enacted, is over
\$X.X billion.

In Fiscal Year (FY) XXXX, new definitive NPS procurement awards, as
reported to the Federal Procurement Data System -- Next Generation
(FPDS-NG), exceeded \$XXX million, more than XX percent of DOI's over
\$X.X billion in procurement obligations. The new definitive actions
(i.e., excludes follow-on actions, modifications) accounted for over XX
percent (XXXXX actions) of the Department's 62,493 total actions
awarded.

As reported to FPDS-NG, in FY's 2003 through 2005, the top
products/services (as measured by total dollars awarded) acquired by NPS
included (please see Appendix for detailed Servicewide and Regional
acquisition profiles for the same period):

-   Commercial and Institutional Building Construction

-   Water, Sewer, and Pipeline Construction

-   Highway, Street, and Bridge Construction

-   All Other Heavy Construction

As of April 2006, NPS employees held an estimated XX percent (XXX
warrants) of the over XX,XXX contracting officer's warrants issued
Departmentwide.

Next, provide similar information focusing on the particular regional
office that you are reviewing, e.g., states covered, number of parks,
refuges, field offices, transaction and warrant data, any unique
requirements.

**ASSESSMENT OBSERVATION SUMMARY RECORD 1 - ACQUISITION **

**FRAMEWORK CORNERSTONE: **Organizational Alignment and Leadership

**ELEMENT: **Aligning Acquisition with Bureau's/Region's Missions and
Needs

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**The end goal of organizational alignment is
to ensure that the acquisition function enables the agency to meet its
overall missions and needs. The acquisition function needs proper
management support and visibility within the organization to meet that
goal."

**CRITICAL SUCCESS FACTOR(S): **

-   Assuring Appropriate Placement of the Acquisition Function

-   Organizing the Acquisition Function to Operate Strategically** **

-   Clearly Defining and Integrating Roles and Responsibilities** **

**OBSERVATION: **

A. Assuring Appropriate Placement of the Acquisition Function

In this section you must basically assess whether the current placement
of the acquisition function meets the organization's needs, vis-à-vis
acquiring needed goods and services, supporting strategic decision
making, and ultimately contributing to the region's and bureau's overall
business performance. Consider: Is the acquisition function fragmented?
Is it in a position where it can plan and provide strategic support to
the bureau/region? Is it seen (and used) as an administrative support
function rather than a business partner in supporting mission needs?

In preparing your written observation for this section:

**Look for: **

\+ The acquisition function has been assigned the appropriate degree of
responsibility and authority for strategic planning, management, and
oversight of the region's purchases of goods and services, and this
responsibility is consistent with the significance of acquisition to the
bureau's and region's mission.

\+ Regional management views the acquisition function as a strategic
asset in support of core mission and business processes.

\+ Regional management and staff view the acquisition function as a
business partner rather than a support function.

\+ Acquisition of goods and services is viewed from a bureau and/or
agency-wide perspective. Acquisition is planned from a corporate
perspective rather than on a transaction-by-transaction basis.

**Beware of: **

↓ Disconnects exist between where the acquisition function is placed in
the region's hierarchy and its actual role in achieving the bureau's
missions or supporting its operations.

↓ Lack of coordination across the region's contracting activity results
in redundancy, inconsistency, and an inability to leverage resources to
meet common or shared requirements.

↓ The acquisition function is viewed merely as an administrative support
function rather than as a business partner.

B. Organizing the Acquisition Function to Operate Strategically

How a region organizes and manages its acquisition function affects its
ability to operate strategically. Fragmented business units tend to
reduce the quality and consistency of overall bureau or corporate
support. Consider: Does the region make appropriate use of technology
and to reduce fragmentation? Is the number of contracting officer's
appointments in the region appropriate? Does support to field units
overly extend the regional office staff's workload? Could goods and
services be acquired more efficiently through a more strategic or
corporate approach? Are acquisition-related performance plans and
metrics established, understood, and realized in a consistent manner
within the region? Have there been recent changes within the bureau
affecting the region's acquisition function, e.g., new requirements,
budget, workforce, technology? Does the acquisition staff see itself as
an active contributor to regional and bureau mission support?

In preparing your written observation for this section:

**Look for: **

\+ The acquisition function's mission is well-defined and its goals and
strategies are consistent with and support the bureau's overall mission.

\+ The current structure of the acquisition function has been assessed
and appropriate changes made in response to changes, such as in the
missions, operating environment, budget, workforce, or technology.

\+ Outcome-oriented performance measures are used to assess the success
of the acquisition function.

**Beware of:**

↓ Regional leadership lacks a clear definition or understanding of the
acquisition function's mission, goals, or strategies, and/or its
potential as a business partner.

↓ The bureau and/or region has not assessed or made changes to the role
of the acquisition function in response to significant changes. There is
no "continuous review" or trend analysis to ensure effectiveness and
efficiency of service delivery.

↓ Performance measures are not used to evaluate the usefulness of the
acquisition function to support regional and bureau-wide mission.

C. Clearly Defining and Integrating Roles and Responsibilities

As stated in the GAO framework:

An acquisition function that is successful at effectively and
efficiently meeting the agency's missions generally reflects a
consistent, cross-functional, and multi-disciplinary approach. This
approach requires engagement by all relevant stakeholders, including
representatives from program offices, contracting officials, financial
managers, human capital officials, information technology officials, and
other appropriate participants. An integrated approach helps agencies
better define their needs and identify, select, and manage providers of
goods and services.

Agency management at each level of the organization is responsible for
development of an environment that encourages the establishment of
interaction and effective communication among disciplines. Consider: Are
there organizational "stovepipes" within the region and/or within its
acquisition function that inhibit effective coordination with
customers/stakeholders? Does the acquisition function clearly understand
and articulate its role and potential in supporting mission-critical
functions to management, program offices, and peers in finance, human
capital, IT, and other disciplines? Are the acquisition function's roles
and responsibilities clear and understood by its customers/stakeholders,
e.g., contracting officer's role in selecting the proper contractual
instrument and procurement approach? How active is the acquisition
function in advance planning of regional requirements?

In preparing your written observation for this section:

**Look for: **

\+ Each stakeholder in the acquisition process has clearly defined roles
and responsibilities.

\+ There is a shared understanding of each participant's role in
acquisition activities.

\+ Acquisition managers support the bureau's/region's strategic-planning
and decision-making needs.

**Beware of: **

↓** **The acquisition function's role is unclear.

↓ Acquisition and other bureau/regional offices do not clearly
communicate and cooperate.

↓ There is little integration of acquisition planning among the
different regional entities with a role in acquisitions.

↓ Conflicts among stakeholders are left unresolved, thereby resulting in
inefficient operations.

↓ The acquisition office is frequently bypassed.

**RATING for Aligning Acquisition with Bureau's/Region's Missions and
Needs:** Based on overall patterns observed, assign the appropriate
color code based on your assessment for the *three *critical success
factors that make up the element, Aligning Acquisition with Bureau's
Missions and Needs, i.e., Assuring Appropriate Placement of the
Acquisition Function; Organizing the Acquisition Function to Operate
Strategically; and Clearly Defining and Integrating Roles and
Responsibilities. ** **

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 1 below.

**ASSESSMENT OBSERVATION SUMMARY RECORD 2-ACQUISITION **

**FRAMEWORK CORNERSTONE: **Organizational Alignment and Leadership

**ELEMENT: **Commitment from Leadership

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**Leaders have the responsibility to set the
corporate agenda, define and communicate the organization's values and
culture, and remove barriers that block organizational changes."

**CRITICAL SUCCESS FACTOR(S): **

-   Clear, Strong, and Ethical Executive Leadership** **

-   Effective Communications and Continuous Improvement ** **

**OBSERVATION: **

A. Clear, Strong, and Ethical Executive Leadership

In this section you assess the acquisition function's direct support
from, and access to regional leadership in mitigating risk and promoting
acquisition's role as a strategic business resource in accomplishing
mission requirements.

Consider: Is the acquisition function's expertise fragmented through
assignments and responsibilities in a variety of non-related areas? Does
regional management set a tone that recognizes the unique contributions
that the acquisition function can make to regional decision making? Are
assignments and duties properly separated? (The collateral duty
environment may lend itself to a higher degree of risk because clear
lines of responsibility/separation of functions are obscured.) Does
regional management support bureau-wide acquisition initiatives? Does
regional management have a positive and supportive attitude towards
internal controls to identify and mitigate risk? Are field level
acquisition activities reviewed in accordance with Departmental policy?
Are corrective action plans for field-level activities developed,
implemented, and monitored?

In preparing your written observation for this section:

**Look for:**

\+ Senior regional leadership provides direction and vision, facilitates
the development of common processes and approaches, and is involved in
identifying and assessing risks associated with meeting acquisition
objectives.

\+ Senior regional leadership promotes a strategic, integrated, and
regional/bureau-wide approach to acquisition.

\+ Senior leadership and management set a positive and supportive
attitude toward internal control.

\+ Senior leadership and management support monitoring to assess the
quality of internal control performance and to ensure that issues are
promptly resolved.

**Beware of:**

↓ Senior regional leadership has not defined a common direction or
vision for the acquisition function.

↓ Senior regional leadership does not continually support efforts to
develop common processes and approaches.

↓ Senior regional leadership has not comprehensively identified and
mitigated risks, e.g., through establishment and monitoring of internal
controls.

↓ Regional personnel do not understand the importance of developing and
implementing good internal controls.

B. Effective Communications and Continuous Improvement

Management needs to effectively communicate to employees the
bureau's/region's missions, values and expectations for the acquisition
function. For this section, consider: Are meaningful metrics used to
measure the effectiveness of the regional acquisition function
(including field level activities) and to provide the foundation for
continuous improvement? Does management communicate its expectations for
the acquisition function? Does regional leadership facilitate and
support clear lines of communication among all parties? Have regional
personnel been asked for their views on the effectiveness of this
communication? Have stakeholders been asked for their views on the
effectiveness of the existing acquisition process and areas needing
improvement? Are control activities (i.e., the policies, procedures and
mechanisms in place to address or mitigate risk and help ensure internal
control objectives are met ) an integral part of the bureau's/region's
planning, implementation, review, and accountability activities to
ensure results and proper stewardship of government resources? Does the
bureau and/or region continuously monitor control activities for their
effectiveness at ensuring acquisition objectives are met?

In preparing your written observation for this section:

**Look for:**

\+ Metrics used by leadership are targeted at demonstrating the impact
and value of the acquisition function and provide useful feedback to
identify areas for improvement.

\+ Management expectations for acquisition are clearly and periodically
communicated within the region.

\+ Processes are in place to continuously gather stakeholder feedback
regarding the effectiveness of the acquisition process and identify
areas needing improvement.

\+ Control activities are an integral part of the bureau's/region's
planning, implementation, review, and accountability activities to
ensure results and proper stewardship of assets.

\+ Control activities are continuously monitored for their effectiveness
at ensuring acquisition objectives are met.

In preparing your findings for this section, be sure to review
acquisition transaction files to ensure that regulations, policies,
clauses/provisions, technological processes and procedures are being
implemented properly and timely. Also review field level review reports
and their related corrective action plans to ensure that control
activities such as reviews are given proper management attention and
support, and that risk, once identified is being mitigated through
corrective action.

**Beware of: **

↓ There is inadequate communication from regional leadership regarding
the effectiveness of the acquisition function and how it supports the
bureau's/region's missions.

↓ There is no mechanism in place for stakeholders to provide suggestions
for improvements to the acquisition process.

↓ Little change is made to acquisition processes based on the needs and
concerns expressed by affected parties.

↓ Internal control monitoring (e.g., peer review, checklists,
acquisition management reviews) does not occur in the course of normal
operations, is not performed continually, and is not ingrained in the
region's operations.

↓ The region has inadequate policies, procedures, techniques, and
mechanisms in place to ensure effective implementation of agency and
bureau management directives.

↓ The region has not implemented a program to continuously measure and
assess the acquisition function's performance in supporting
bureau/regional missions or achieving acquisition goals.

↓ Performance measures are in place but are not consistently utilized or
communicated.

**RATING for Commitment from Leadership: **Based on overall patterns
observed, assign the appropriate color code based on your assessment for
the *two *critical success factors that make up the element, Commitment
from Leadership, i.e., Clear, Strong, and Ethical Executive Leadership,
and Effective Communications and Continuous Improvement.** **

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 2 below.

**ASSESSMENT OBSERVATION SUMMARY RECORD 3-ACQUISITION **

**FRAMEWORK CORNERSTONE: **Policies and Processes

**ELEMENT: **Planning Strategically

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**Planning strategically requires attention
to the larger context within which acquisitions occur. First, it
requires identifying and managing relationships among the parties
involved in the acquisition process. Second, sufficient attention should
be given to analyzing aggregate agency/bureau/regional needs and
devising strategic acquisition plans to meet those needs. Acquisition
planning should also take into consideration the effects of the
appropriations process and other external factors on the timing and
execution of major contracts."

**CRITICAL SUCCESS FACTOR(S): **

-   Partnering with Internal Organizations** **

-   Assessing Internal Requirements and the Impact of External Events**
    **

**OBSERVATION: **

A. Partnering with Internal Organizations

Federal Acquisition Regulation (FAR) Subpart 7.102 requires agencies to
perform acquisition planning and conduct market research for all
acquisitions in order to promote and provide for: (1) acquisition of
commercial items to the extent suitable; and (2) full and open
competition to the maximum extent practicable. Section 7.102(b) states
that:

This planning shall integrate the efforts of all personnel responsible
for significant aspects of the acquisition. The purpose of this planning
is to ensure that the Government meets its needs in the most effective,
economical, and timely manner.

In this section you assess the strength of the acquisition function's
engagement with stakeholders from various disciplines, e.g., finance,
legal, program offices, and other appropriate participants in
identifying needs and planning acquisitions in a timely manner that
allows for appropriate competition and the acquisition of commercial
solutions. Are roles and responsibilities defined clearly? Does the
acquisition community provide well informed business guidance to project
managers? Is acquisition concentrating on individual and possibly
redundant transactions rather than taking a strategic approach to
identifying repetitive requirements and leveraging buying power?

In preparing your written observation for this section:

**Look for:**

\+ Acquisition planning and strategy development support the
bureau/region's missions rather than focus on the needs of individual
units/transactions.

\+ Stakeholders work on an ongoing basis to define key business and
acquisition drivers to understand each other's needs.

\+ The bureau/region has structures in place that require appropriate
coordination among stakeholders developing and implementing acquisition
strategies.

\+ Management encourages and supports appropriate and timely
coordination among stakeholders in acquisition planning.

**Beware of: **

↓ There is no active and ongoing involvement between acquisition and
stakeholders.

↓ There is little evidence of advance acquisition planning.

↓ Stakeholders do not clearly communicate their needs or work together
to identify solutions.

↓ Lack of integration across the acquisition function results in
redundancy, inconsistency, and an inability to leverage resources to
meet shared requirements.

↓ Acquisition and financial management officials do not partner to
develop a shared vision.

B. Assessing Internal Requirements and the Impact of External Events

Successful acquisition strategies require sufficient attention to
analyzing agency/bureauwide/regional needs. Past acquisitions should be
reviewed to identify trends and opportunities for consolidating similar
acquisitions planned in the coming year to leverage buying power and
reduce administrative burdens. Acquisition planning should take into
consideration the effects of the appropriations process on the timing
and execution of major contracts. Additionally, contracting personnel
must be aware of agency/bureau strategic plans, congressional mandates,
socioeconomic policy objectives, and other factors. Acquisition
processes should also be sufficiently flexible to address unforeseen
external events and emergencies, e.g., fires, hurricanes, etc. In this
section, you assess the acquisition function's success in monitoring and
effectively using transaction data, strategic planning, and awareness of
external factors and requirements and the ability to work with them.

In preparing your written observation for this section:

**Look for:**

\+ Adequate and relevant data are available and used to make strategic
acquisition plans and decisions.

\+ The acquisition function considers recurring purchases and develops
or participates in bureau/departmentwide acquisition plans that best
leverage these acquisitions.

\+ The region identifies opportunities for small and disadvantaged
businesses and consistently achieves socioeconomic goals.

\+ Acquisition plans are current and reflect anticipated budgetary
resources.

\+ There is an awareness of current and pending legislation, policy, and
plans and their potential implications on the acquisition function.

\+ The acquisition function has assessed and incorporated changes, as
appropriate, to enable its acquisition processes to better respond to
unforeseen external events and emergencies.

**Beware of:**

↓ There is little evidence of strategic and advance acquisition
planning. Acquisition planning is completed on a contract-by-contract
basis rather than with consideration of bureauwide/regional needs.

↓ Data is not periodically monitored or analyzed for acquisition
planning and decision making.

↓ Frequent emergency or sole-source purchases are made to meet routine
or recurring needs.

↓ Function fails to achieve socioeconomic goals.

↓ The function is ill-equipped to purchase goods and services needed to
respond to emergency situations.

**RATING for Planning Strategically**:** **Based on overall patterns
observed, assign the appropriate color code based on your assessment for
the *two* critical success factors that make up the element, Planning
Strategically, i.e., Partnering with Internal Organizations, and
Assessing Internal Requirements and the Impact of External Events.

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 3 below.

**ASSESSMENT OBSERVATION SUMMARY RECORD 4-ACQUISITION **

**FRAMEWORK CORNERSTONE: **Policies and Processes

**ELEMENT: **Effectively Managing the Acquisition Process

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**The role of the acquisition function does
not end with the award of contracts. Acquisitions that help the bureau
meet its needs require continued involvement throughout contract
implementation and close-out. In other words, bureau processes need to
ensure that contracted goods and services will be delivered according to
the schedule, cost, quality, and quantity specified in the contract.
Factors that can help a bureau effectively manage its acquisition
process include empowering cross-functional teams, managing and engaging
external suppliers, providing effective monitoring and oversight, and
implementing sound financial accountability measures."

**CRITICAL SUCCESS FACTOR(S): **

-   Empowering Cross-Functional Teams** **

-   Managing and Engaging Suppliers** **

-   Monitoring and Providing Oversight to Achieve Desired Outcomes** **

-   Enabling Financial Accountability ** **

**OBSERVATION: **

A. Empowering Cross-Functional Teams

In this section you assess the function's use of cross-functional teams
with the right mix of knowledge, technical expertise, and credibility to
help better define their needs and identify, select, and manage
providers of goods and services, which in turn helps ensure that users'
needs are met at the lowest cost to the organization. Teams generally
include representatives from acquisition, internal users of goods and
services, and the budget or finance office. They are responsible for
analyzing spend data, identifying and prioritizing potential
opportunities for more detailed review, defining internal needs and
requirements, and conducting market research. This process is vital to
the capital planning and performance-based acquisition processes.

In preparing your written observation for this section:

**Look for:**

\+ The function uses cross-functional teams to plan for and manage
projects. These teams develop a project plan to implement projects
effectively.

\+ Project performance is systematically monitored, and controls and
incentives are established for accountability, e.g., Earned Value
Management.

\+ Contracting Officers Representatives' training is current.

\+ Contracting Officers Representatives work closely with the
contracting officer.

\+ Open, honest, and clear communication is encouraged among all parties
including team members, program officials, and contractors.

**Beware of: **

↓ The function makes limited use of cross-functional teams.

↓ The acquisition function does not effectively participate as a member
of Integrated Project Teams, or feel empowered to contribute to project
team decisions.

↓ Contracting Officers Representatives are not adequately trained.

↓ Contracting Officers Representatives and contracting officers do not
communicate on an ongoing basis throughout the project/contract's period
of performance.

↓ Project performance is not systematically monitored, and controls and
incentives are not established for accountability, e.g., Earned Value
Management.

B. Managing and Engaging Suppliers

One of the 24 initiatives under the President's Management Agenda's
E-Gov program, the Integrated Acquisition Environment provides
Government contracting personnel with ample opportunity to conduct
on-line market research and monitor suppliers through tools including
the Central Contractor Registration (CCR); the Past Performance
Information Retrieval System (PPIRS), that provides timely and pertinent
contractor past performance information to the Federal acquisition
community for use in making source selection decisions; the Excluded
Parties Lists System (EPLS), which identifies those parties excluded
throughout the U.S. Government (unless otherwise noted) from receiving
Federal contracts, certain subcontracts, or financial assistance;
FedBizOpps.gov, the single government point-of-entry for Federal
government procurement opportunities over \$25,000. Government buyers
are able to publicize their business opportunities by posting
information directly to FedBizOpps via the Internet. FedBizOpps (FBO) is
also used by commercial vendors seeking Federal markets for their
products and services by searching, monitoring, and retrieving
opportunities solicited by the entire Federal contracting community; and
the On-line Representations and Certifications Application (ORCA)
designed to replace the paper based Representations and Certifications
(Reps and Certs) process.

In this section you assess the acquisition function's awareness and use
of these tools to identify suppliers and manage supplier relationships
thereby encouraging competition, enhanced price analysis, contractor
quality and performance. In addition, consideration must be given to
past performance evaluation and reporting processes, and processes in
place for soliciting and evaluating contractor feedback.

In preparing your written observation for this section:

**Look for:**

\+ The bureau/region trains its acquisition personnel on how to manage
supplier relationships.

\+ Past performance evaluations are routinely prepared and reviewed.

\+ The function has established an effective communication and feedback
system with its suppliers.

\+ The acquisition staff effectively utilizes Integrated Acquisition
Environment tools in conducting market research, soliciting competition,
and making contracting decisions.

**Beware of: **

↓ Knowledge of suppliers/contractors is not shared across the
contracting activity.

↓ The function continues to select the same suppliers without
periodically assessing whether the goods and services offered are
competitive in terms of price, quality, and performance.

↓ The acquisition staff lacks the skills, knowledge, and expertise to
manage supplier relationships effectively.

↓ The acquisition staff does not effectively use Integrated Acquisition
Environment tools in conducting market research, soliciting competition,
and making contracting decisions.

↓ Past performance evaluations are not routinely prepared and reviewed.

C. Monitoring and Providing Oversight to Achieve Desired Outcomes

In this section you assess the quality of acquisition function's
oversight processes.

Consider: What tools, processes, and controls does the function use to
ensure effective oversight of contractor performance and of employees
making purchases? Are the roles and responsibilities of those who
perform contract management and oversight clearly defined?

In preparing your written observation for this section:

**Look for: **

\+ The bureau has undertaken, and the region has implemented a
workforce-planning effort to ensure that individuals who award, manage,
and monitor contracts have clearly defined roles and responsibilities
and have appropriate workload, skills, and training to perform their
jobs effectively.

\+ Processes are in place to effectively track and monitor contractor
performance.

\+ The acquisition oversight process is regularly reviewed, areas
needing improvement are identified, and corrective action plans are
established and implemented. For example, are field level reviews
conducted in accordance with agency requirements? Are commonalities
among review findings analyzed and bureauwide/regional corrective
actions taken?

**Beware of:**

↓ Personnel responsible for contract management have skills and
knowledge gaps that inhibit their ability to properly oversee the types
of contracts used.

↓ There are no processes in place for monitoring whether contracts meet
cost, schedule, performance, and quality requirements.

↓ The bureau/region acquisition function does not assign clear roles and
responsibilities for overseeing contracts.

↓ The acquisition oversight process is not regularly reviewed; areas
needing improvement are not properly identified; and corrective action
plans are not consistently established and implemented.

D. Enabling Financial Accountability

Throughout the acquisition process, financial information should be
tracked and communicated in a way that enables effective evaluation and
assessment of acquisition activities. When financial data are not
useful, relevant, timely, or reliable, the acquisition function - as
well as other functions across an organization - are at risk of
inefficient or wasteful business practices.

IDEAS, FPDS-NG, and the CCR were designed to and, when properly used,
can provide acquisition staffs with access to critical financial and
vendor information. IDEAS has a financial interface that eliminates the
need for independent entry of the same data by acquisition and financial
staffs. In this section you assess the acquisition function's access to,
and most importantly, use of financial information.

In preparing your written observation for this section:

**Look for: **

\+ The acquisition workforce has ready access and uses information on
obligated and expended funds, with sufficient information to assure
proper oversight and accounting at the contract level.

\+ Entries are made to the financial management system by appropriate
personnel that update the contract management and property
accountability systems.

\+ The bureau/region reports frequently enough to ensure accountability
in the acquisition function.

\+ Adjustments to contract accounting records are clearly reported and
accurate; such adjustments represent a low percentage of financial
transactions.

\+ Erroneous and improper payments and cost overruns are tracked and are
not a significant problem.

\+ Contracting and financial officials take appropriate corrective
action when contractors are not meeting expectations for cost, schedule,
or performance.

**Beware of: **

↓ Acquisition and financial management staff lacks access or fails to
effectively use critical information, including fiscal year;
appropriation/Treasury fund symbol; organization code; cost center;
object classification; estimated amount; project code; program code;
transaction date; action code; subject-to-funds availability indicator;
asset identifier code; contractor code/name; award date; and amounts
increased and/or decreased.

↓ Acquisition and financial management staff independently update the
same types of data into independent financial and contract management
systems. Standard systems are not used.

↓ Inadequate transaction processing, particularly improper payments,
occur frequently.

↓ Failure to properly capture and identify taxpayer identification
number for contractor identification and incoming reporting and debt
collection purposes.

↓ Critical information is not being captured, and duplicative actions on
the part of acquisition and financial management staffs are required to
independently update data into the various systems thereby significantly
increasing the probability of erroneous data entry.

**RATING for Effectively Managing the Acquisition Process: **Based on
overall patterns observed, assign the appropriate color code based on
your assessment for the *four* critical success factors that make up the
element, Effectively Managing the Acquisition Process, i.e., Empowering
Cross-Functional Teams; Managing and Engaging Suppliers; Monitoring and
Providing Oversight to Achieve Desired Outcomes; and Enabling Financial
Accountability. ** **

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 4 below

**ASSESSMENT OBSERVATION SUMMARY RECORD 5-ACQUISITION **

**FRAMEWORK CORNERSTONE: **Policies and Processes

**ELEMENT: **Promoting Successful Outcomes of Major Projects

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**The Federal government spends billions of
dollars each year on major physical capital investment projects and to
research, develop, and produce large custom projects. Capital
investments and custom projects are generally expensive, span multiple
years, and are crucial to the agency's strategy. Capital investments
therefore usually require more analysis, support, and review than
projects that cost less, have shorter time frames, or have less
agencywide impact. Particular attention must be given to these
long-term, capital-intensive projects."

**CRITICAL SUCCESS FACTOR(S): **

Using Sound Capital Investment Strategies** **

**OBSERVATION: **

In this section, assess the bureau's capital planning processes and the
bureau's/regional acquisition function's role in it.

In preparing your written observation for this section:

**Look for:**

\+ The bureau has a capital planning and investment program that
recognizes the acquisition function's role and responsibility in project
management.

\+ The acquisition staff actively participates as a member of
bureau/regional program Integrated Project Teams.

\+ The acquisition staff develops the Acquisition Strategies used in the
bureau's/region's project business cases.

\+ Contracting officers monitor contractor implementation of FAR Earned
Value Management requirements.

**Beware of: **

↓ The bureau does not have a capital planning and investment program
that recognizes the acquisition function's role and responsibility in
project management.

↓ The acquisition staff does not participate as a member of
bureau/regional program Integrated Project Teams.

↓The Acquisition Strategies used in the bureau's/region's project
business cases are developed without appropriate coordination with the
acquisition function.

↓Contracting officers do not monitor contractor implementation of FAR
Earned Value Management requirements.

**RATING for Promoting Successful Outcomes of Major Projects: **Based on
overall patterns observed, assign the appropriate color code based on
your assessment of the critical success factor that makes up the
element, Promoting Successful Outcomes of Major Projects, i.e., Using
Sound Capital Investment Strategies.

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 5 below.

**ASSESSMENT OBSERVATION SUMMARY RECORD 6-ACQUISITION **

**FRAMEWORK CORNERSTONE: **Human Capital

**ELEMENT: **Valuing and Investing in the Acquisition Workforce

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**Successful acquisition efforts depend on
agency leadership and management valuing and investing in the
acquisition workforce."

**CRITICAL SUCCESS FACTOR(S): **

Commitment to Human Capital Management** **

**OBSERVATION: **

In this section you assess bureau/regional management's commitment to
valuing and investing in its acquisition workforce. Consider: Are
Governmentwide acquisition workforce training and education standards
upheld within the bureau/region? Do acquisition-related performance
standards and expectations cascade throughout the contracting activity?
Are senior bureau/regional leaders and managers held accountable for
effectively managing the acquisition workforce?

In preparing your written observation for this section:

**Look for:**

\+ Acquisition officials play a significant role in developing the
bureau's/region's overall human capital strategy and ensure that it
reflects the goals of the acquisition function.

\+ Acquisition officials develop, implement, and evaluate human capital
approaches designed to ensure accountability, meet customer needs, and
improve overall business performance.

\+ Acquisition officials collaborate with and secure the support of
managers at all levels for human capital approaches.

\+ Acquisition officials are held accountable for managing the
acquisition workforce effectively.

\+ Acquisition employees are provided with resources for continuous
learning efforts, competency-based appraisal systems, and retention and
reward programs.

**Beware of: **

↓ Leadership views people as costs rather than as assets.

↓ Bureau/regional leadership makes decisions about the workforce without
considering how the decisions affect mission accomplishment, e.g.,
contracting officer's appointments, workload.

↓ Bureau/Regional leadership and management are not held accountable for
effectively managing the acquisition workforce.

↓ Business decisions proceed without consideration of human capital
needs they entail or human capital approaches necessary for success.

↓ Acquisition-related performance standards and expectations do not
cascade throughout the contracting activity.

**RATING for Valuing and Investing in the Acquisition Workforce: **Based
on overall patterns observed, assign the appropriate color code based on
your assessment for the critical success factor that makes up Valuing
and Investing in the Acquisition Workforce, i.e., Commitment to Human
Capital Management.

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 6 below.

**ASSESSMENT OBSERVATION SUMMARY RECORD 7-ACQUISITION **

**FRAMEWORK CORNERSTONE: **Human Capital

**ELEMENT: **Strategic Human Capital Planning

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**By focusing on recruiting, hiring,
training, and professional development, strategic workforce planning
outlines ways to help the agency fill gaps in knowledge, skills, and
abilities."

**CRITICAL SUCCESS FACTOR(S): **

-   Integration and Alignment** **

-   Data-Driven Human Capital Decisions

**OBSERVATION: **

A. Integration and Alignment

In this section you assess bureau/regional office success in developing
strategic human capital plans that incorporate the needs of the
acquisition function. Consider, at the field and regional levels do
managers recruit, hire, and manage their contracting support in a
unit-centric human capital approach that does not allow for
consideration of how well the unit's contracting function supports
Govermentwide qualification requirements or agency-/bureauwide goals or
strategies? Or does the region develop or follow a corporate approach to
recruiting, hiring, and managing its contracting support?

In preparing your written observation for this section:

**Look for:**

\+ The region follows comprehensive agency/bureauwide workforce planning
efforts.

\+ The bureau/region has developed strategies for recruiting, retaining,
and developing acquisition staff, including performance measures to
evaluate the contribution these strategies make in supporting the
agency's/bureau's/region's acquisition function and achieving its
mission and goals.

\+ The bureau/region has inventoried its acquisition workforce and has
identified current and future weaknesses and needs in acquisition
skills.

**Beware of:**

↓ There is no evidence that the bureau/region recognizes the link
between its human capital approaches and organizational performance
objectives.

↓ The bureau/region/field unit adopts human capital approaches without
considering how well they support organizational and acquisition goals
and strategies or how these approaches may be interrelated.

B. Data-Driven Human Capital Decisions

In this section you assess the adequacy of data and the effectiveness
with which it is used in making human capital decisions related to the
acquisition workforce. Consider: Who is included in the acquisition
workforce? How does the bureau/region track data on its acquisition
workforce? How does the bureau/region determine the appropriate size of
its acquisition workforce: What training and

professional certifications have current acquisition employees attained?
How does the bureau/region track the acquisition staff's workload?

In preparing your written observation for this section:

**Look for:**

\+ Data on the bureau's/region's acquisition workforce are reflected in
strategic workforce-planning documents.

\+ Data are available on staff development, including the number of
people receiving training; and money spent on training. Acquisition
workforce data are used for planning and decision making.

\+ The bureau/region uses data to evaluate and continuously improve the
effectiveness of training and development programs.

**Beware of:**

↓ Bureau/regional officials lack or do not use critical information with
which to create a profile of the acquisition workforce or to evaluate
the effectiveness of human capital approaches.

↓ Data is not used to evaluate and improve the effectiveness of training
and development programs.

**RATING for Strategic Human Capital Planning: ** Based on overall
patterns observed, assign the appropriate color code based on your
assessment for the *two* critical success factors that make up the
element, Strategic Human Capital Planning, i.e., Integration and
Alignment, and Data-Driven Human Capital Decisions.

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 7 below.

**ASSESSMENT OBSERVATION SUMMARY RECORD 8-ACQUISITION **

**FRAMEWORK CORNERSTONE: **Human Capital

**ELEMENT: **Acquiring, Developing, and Retaining Talent

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**Recent trends in hiring and retirements in
the federal government will leave many agencies with workforce
imbalances in terms of skills, knowledge, and experience. Without
sufficient attention given to acquiring, developing, and retaining
talent, federal agencies could lose a significant portion of their
contracting knowledge base."

**CRITICAL SUCCESS FACTOR(S): **

Targeted Investments in People** **

**OBSERVATION: **

Targeted Investments in People

In this section you assess the adequacy of the bureau's/region's
investment in and enhancing the value of their acquisition staff.
Investing in training for the acquisition workforce is critical to
ensuring adequate oversight of the quality, cost, and timeliness of
goods and services delivered by third parties.

Consider: Does the bureau/region have a method for determining the
appropriate level of spending on training, recruiting, and retention
efforts? Are individual training plans established for all employees? Is
continuous learning emphasized? Do managers consistently provide
resources to support training and development priorities for the
acquisition staff? Does the acquisition function have a succession plan?

In preparing your written observation for this section:

**Look for:**

\+ The bureau/region has prioritized the most important training
initiatives and secured top-level commitment to providing resources to
implement the initiatives.

\+ Goals, expectations, and criteria for investments in human capital
development are clearly defined, transparent, consistently applied, and
based on expected improvement in results.

\+ Bureau/regional training investments are monitored and evaluated for
effectiveness.

**Beware of: **

↓ Training and other human capital expenditures are minimized rather
than viewed as an investment.

↓ Funding decision are made without clearly defined objectives or
adequate consideration of how they will impact the workforce.

↓ The bureau/region does not establish priorities, provide adequate
funding, or track investments in human capital.

↓ Individual training plans are not established for all employees.

↓ Little or no evidence of succession planning.

**RATING for Acquiring, Developing, and Retaining Talent: ** Based on
overall patterns observed, assign the appropriate color code based on
your assessment for the critical success factor that makes up the
element Acquiring, Developing, and Retaining Talent, i.e., Targeted

Investments in People.

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 8 below.

**ASSESSMENT OBSERVATION SUMMARY RECORD 9-ACQUISITION **

**FRAMEWORK CORNERSTONE: **Human Capital

**ELEMENT: **Creating Results-Oriented Organizational Cultures

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**Leading organizations foster a work
environment in which people are empowered and motivated to contribute to
continuous learning and mission accomplishment."

**CRITICAL SUCCESS FACTOR(S): **

-   Empowerment and Inclusiveness** **

-   Unit and Individual Performance Linked to Organizational Goals

**OBSERVATION: **

A. Empowerment and Inclusiveness

In this section you assess bureau/regional management's success in
getting acquisition employees at all levels of the organization involved
in the planning process to develop mission goals and objectives from a
front-line perspective. Consider: Does management seek ideas from the
acquisition workforce? Do employees feel a sense of ownership about
policies and procedures? Do managers involve employees when planning and
sharing acquisition performance information? Has the bureau/region
established a communication strategy to create shared expectations about
the acquisition function and to report progress?

In preparing your written observation for this section:

**Look for:**

\+ Bureau/regional management obtains employees' ideas, involves
employees in planning and sharing acquisition performance information,
and incorporates employee feedback into new policies and procedures.

\+ Bureau/region has established a communication strategy to create
shared expectations about the acquisition function and to report
progress.

**Beware of: **

↓ Employee ideas are not sought by bureau/regional management and
employees are not involved in planning and sharing acquisition
performance information within the bureau/region.

↓ Employees do not feel a sense of ownership about policies and
procedures.

↓ Bureau/region has not established a communication strategy to create
shared expectations about the acquisition function and to report
progress.

B. Unit and Individual Performance Linked to Organizational Goals

In this section you assess whether acquisition employee performance plan
metrics are clear and consistent, and provide a "line of sight" between
individual activities, organizational requirements, e.g., A-123
compliance, Government/agency/bureau management initiatives, and
organizational results. For example, do senior management performance
requirements cascade to employee performance plans in a clear and
consistent manner?

In preparing your written observation for this section:

**Look for: **

\+ Individual performance expectations are aligned with organizational
and cross-cutting goals.

\+ Performance information is routinely used to track and plan follow-up
actions to address organizational priorities.

\+ Meaningful distinctions in performance are made.

\+ Roles and responsibilities are defined and enable staff to maintain a
consistent focus on programmatic priorities even during organizational
transitions.

**Beware of:**

↓ Performance expectations are not aligned with organizational goals.

↓ The bureau/region does not use performance information to track
progress at meeting organizational priorities.

**RATING for Creating Results-Oriented Organizational Cultures: **Based
on overall patterns observed, assign the appropriate color code based on
your assessment for the *two* critical success factors that make up the
element, Creating Results-Oriented Organizational Cultures, i.e.,
Empowerment and Inclusiveness; and Unit and Individual Performance
Linked to Organizational Goals.

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 9 below.

**ASSESSMENT OBSERVATION SUMMARY RECORD 10-ACQUISITION **

**FRAMEWORK CORNERSTONE: **Knowledge and Information Management

**ELEMENT: **Identifying Data and Technology that Support Acquisition
Management Decisions

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**Leading organizations gather and analyze
data to identify opportunities to reduce costs, improve service levels,
measure compliance with supplier agreements, and provide better
management of service providers. Information systems help managers learn
how much is being spent with which service provider and for what
supplies or services. Additionally, data collected in support of
meaningful metrics can assist agencies track achievements in comparison
with plans, goals, and objectives. They can also allow agencies to
analyze differences between actual performance and planned results.
Generating meaningful data, however, requires good data stewardship."

**CRITICAL SUCCESS FACTOR(S): **

Tracking Acquisition Data; Translating Financial Data into Meaningful
Formats; and** **

Analyzing Goods and Services Spending

**OBSERVATION: **

There is a wealth of acquisition data available to contracting personnel
from a variety of sources (e.g., FPDS-NG, IDEAS, FFS, etc.). Some of the
data provided from these sources identify what the bureau/region buys,
how much it buys, and the procurement methods used. The data can be used
for the following:

-   Elimination of redundancies

-   Identification of strategic sourcing opportunities

-   Internal control monitoring purposes

-   Highlighting areas where additional/supplementary training is
    necessary

-   Workload management (office to agencywide)

In this section you assess how accurately transaction data are reported
and the effectiveness with which they are used.

In preparing your written observation for this section:

**Look for: **

\+ Acquisition managers ensure that employees are aware of the
importance of timely and accurate transaction reporting, and provide
training to ensure data quality.

\+ Transaction data are reported timely and accurately.

\+ Transaction data is regularly monitored for accuracy and
completeness.

\+ Transaction data is credible, reliable, and timely, and is used to
make informed decisions.

\+ Contract management information tracks events throughout the life of
a contract, e.g., contract award, period of performance, modifications,
close-out.

\+ Financial data, e.g., budgetary resources and funds availability,
status of obligations and expenditures on individual contracts,
outstanding purchase requests, and payments for the receipt of goods and
services are readily available to stakeholders.

\+ Finance executives work with acquisition executives and managers on
an ongoing basis to determine business and acquisition information
needed to manage and oversee the bureau's/region's missions and
objectives.

\+ Relevant financial information pertaining to acquisition is presented
with suitable detail in an understandable format.

\+ Bureau/regional contracting personnel make regular use of data and
spend analysis techniques to support strategic planning efforts.

\+ The bureau/region knows how much it is spending using purchase cards
and has considered this information in its spend analysis.

\+ The bureau/region uses a variety of information, including financial
data, to conduct a spend analysis.

**Beware of: **

↓ The bureau/region has not collected the full set of information or
data to make effective and fact-based decisions.

↓ Data are not current, reliable, complete, or accurate.

↓ The bureau/region does not make needed data accessible to decision
makers; leading them to rely on informal, ad-hoc systems to make
acquisition decisions.

↓ Measurements taken in support of metrics are not credible, leading to
disagreements over numbers and the value of the assessment process.

↓ Financial information pertaining to acquisition is not of the proper
scope, level of detail, timing, content, and presentation format to
provide real value to users.

↓ Acquisition information received by financial management staff is not
clear and understandable, impairing efficient processing of the
information into management reports.

↓ The bureau/region does not conduct or make regular use of spend
analysis.

↓ Spend analysis is impeded because data are not credible, reliable, or
timely.

↓ Information is not maintained in a standardized format or is of poor
quality, thus hampering efforts to use data to more effectively
management goods and services spending.

**RATING for Identifying Data and Technology that Support Acquisition
Management Decisions: **Based on the overall patterns observed, assign
the appropriate color code based on your assessment for the critical
success fact that makes up the element, Identifying Data and Technology
that Support Acquisition Management, i.e.,

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 10 below.

**ASSESSMENT OBSERVATION SUMMARY RECORD- 11 ACQUISITION **

**FRAMEWORK CORNERSTONE: **Knowledge and Information Management

**ELEMENT: **Safeguarding the Integrity of Operations and Data

**ELEMENT DESCRIPTION/REFERENCE: **

**GAO Framework Standard: "**Internal controls-such as structures,
policies, and procedures-promote efficiency, reduce the risk of asset
loss, help ensure that financial and acquisition management systems
issue reliable reports and that the organization is in compliance with
laws and regulations. It is essential that acquisition management
systems contain appropriate, cost-effective controls to safeguard
assets, ensure accurate aggregation and reporting of information, and
support the accomplishment of organizational objectives. Internal
control actions and activities occur throughout a bureau's operations
and on an on-going basis. Management must balance safeguards with the
need to make accessible, timely, and accurate data available to managers
and others needing acquisition information.

There are two broad groupings of information systems controls that help
safeguard the integrity of operations and data: general controls and
application controls. Assessing general and application controls is a
technical analysis and requires the assistance of persons knowledgeable
in computer systems evaluation."

**CRITICAL SUCCESS FACTOR(S): **

Ensuring Effective General and Application Controls, and Data
Stewardship** **

**OBSERVATION: **

Ensuring Effective General and Application Controls and Data Stewardship

In this section you assess the bureau's/region's administration and
monitoring of its acquisition-related data systems, as required by OMB
Circular A-123.

Consider: Is acquisition system support provided as a collateral duty?
Are systems and data routinely monitored for quality and reliability?
Are corrective actions taken in a timely manner when areas of weakness
are identified? Are system access rights closely monitored? Are
redundant data and/or systems used?

In preparing your written observation for this section:

**Look for:**

\+ Sufficient resources are dedicated to ensuring that users are
provided with proper system support and use.

\+ Systems and data are routinely monitored and tested for quality and
reliability.

\+ Corrective actions are taken in a timely manner to address any
identified weaknesses.

\+ System access rights are closely monitored.

\+ The bureau's/region's internal controls provide reasonable assurance
that data are accurate, complete, timely, and reliable.

\+ Data are redundant only when necessary. Inconsistencies are
eliminated.

\+ Data are accessible to authorized users when needed.

**Beware of:**

↓ System and data reviews/tests do not take place on a routine basis.

↓ Insufficient support is provided to administer systems and assist
users.

↓ Corrective actions are not taken in a timely manner to address
identified weaknesses.

↓ System access rights are not sufficiently monitored.

↓ The bureau's/region's internal controls are insufficient to provide
reasonable assurance that data are accurate, complete, timely, and
reliable.

↓ Data are redundant. Inconsistencies are not eliminated.

↓ Data are not accessible to authorized users when needed.

**RATING for** **Safeguarding the Integrity of Operations and Data:
**Based on overall patterns observed, assign the appropriate color code
based on your assessment for the critical success factor that makes up
the element, Safeguarding the Integrity of Operations and Data, i.e.,
Ensuring Effective General and Application Controls, and Data
Stewardship** **

**RECOMMENDATIONS: **

List your corrective action recommendations for Assessment Observation
Summary Record 11 below.

ASSESSMENT APPROACHES/REVIEW METHODOLOGY** **

The following internal control assessment of the
\[Bureau/Office/Region\] acquisition function was conducted in
accordance with guidance contained in Office of Management and Budget
Circular A-123, Management\'s Responsibility for Internal Control
(Revised 12/21/2004), and the Government Accountability Office's
[Framework for Assessing the Acquisition Function at Federal
Agencies]{.underline}.

**A. Internal Control as Defined by Office of Management and Budget
Circular A-123 **

Internal control is an integral component of an organization's
management that provides reasonable assurance that the following
objectives are being achieved:

-   Effectiveness and efficiency of program activities and operations;

-   Reliable, complete, and timely data are maintained;

-   Compliance with applicable laws and regulations; and

-   Programs and resources are protected from waste, fraud, and
    mismanagement.

Internal controls are the organizations, policies, procedures, actions,
and activities that management implements to ensure that goals and
objectives are met. They are the tools to help managers achieve results
and safeguard the integrity of their programs. Internal controls apply
equally to accounting and financial management, program, operational,
and administrative areas.

As revised, OMB Circular A-123 emphasizes management's responsibility
for developing and maintaining internal control activities that comply
with standards related to:

• **Control Environment: **The organizational structure and culture
established by management and employees to sustain support for effective
internal control. This includes:** **

-   ** **Well defined areas of authority and responsibility;

-   ** **Appropriate delegation of authority and responsibility
    throughout the organization;

-   ** **Establishment of a suitable hierarchy for reporting;

-   ** **Supporting appropriate human capital policies for hiring,
    training, evaluating, counseling, advancing, compensating and
    disciplining personnel; and

-   ** **Upholding the need for personnel to possess and maintain the
    proper knowledge and skills to perform their assigned duties as well
    as understand the importance of maintaining effective internal
    control within the organization.

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-   **Risk Assessment: **Identification, analysis, and mitigation of
    internal and external risks that may prevent the organization from
    meeting its objectives.** **

• **Control Activities:** The policies, procedures and mechanisms in
place to address or mitigate risk and help ensure internal control
objectives are met, such as: ** **

-   ** **Proper segregation of duties and supervision;

-   ** **Access to and accountability for resources;** **

-   ** **Appropriate recording, documentation and access to that
    documentation;** **

-   ** **General and application controls over information systems.** **

• **Information and Communications: **Evaluates how well information is
communicated to all relevant personnel at all levels within an
organization, and with interested outside organizations. Examples
include:** **

** **Receiving updated guidance from central oversight offices;

** **Management communicating requirements to operational staff.

-   **Monitoring: **An on-going function that should occur in the normal
    course of business. Periodic assessments should be integrated as
    part of management's continuous monitoring of internal control,
    which should be ingrained in the organization's operations. ** **

**B. Government Accountability Office (GAO) [Framework for Assessing the
Acquisition Function at Federal Agencies ]{.underline}**

Issued in September 2005, the GAO [Framework for Assessing the
Acquisition Function at Federal Agencies]{.underline} is built on a
foundation of strong internal control, which serves as the first line of
defense in safeguarding assets and preventing and detecting errors and
weaknesses. The framework comprises four interrelated cornerstones that
promote an efficient, effective, and accountable acquisition function:

-   Organizational Alignment and Leadership

-   Policies and Processes

-   Human Capital

-   Knowledge and Information Management

The framework's direct linkage to the A-123 standards identified above
is apparent in the critical success factors evaluated/assessed under
each of the four cornerstone areas.

-   **Organizational Alignment and Leadership**:

\- Assuring appropriate placement of the acquisition function;

\- Organizing the acquisition function to operate strategically;

\- Clearly defining and integrating roles and responsibilities;

\- Clear, strong, and ethical executive leadership;

\- Effective communications and continuous improvement

-   **Policies and Processes:**

\- Partnering with internal organizations;

\- Assessing internal requirements and the impact of external events;

\- Managing and engaging suppliers;

\- Monitoring and providing oversight to achieve desired outcomes;

\- Enabling financial accountability;

\- Using sound Capital Investment strategies

-   **Human Capital:**

\- Commitment to human capital management;

\- Integration and alignment;

\- Data-driven human capital decisions;

\- Targeted investments in people;

\- Empowerment and inclusiveness;

\- Unit and individual performance linked to organizational goals

-   **Knowledge and Information Management:**

\- Tracking acquisition data;

\- Tracking financial data into meaningful formats;

\- Analyzing goods and services spending;

\- Safeguarding the integrity of operations and data stewardship

Because of its comprehensiveness and solid emphasis on compliance and
organizational effectiveness, the GAO Framework has been designated by
the Department's Senior Procurement Executive as the Departmental
standard by which bureau acquisition functions will be evaluated in
fulfilling OMB Circular A-123's requirements.

**D. Review Methodology/Information Sources**

In addition to OMB Circular A-123 and the framework, sources of
information for conduct of this Acquisition Management Review (AFAMR)
included: \[Please list sources of information, examples provided
below:\]

-   Bureau/office headquarters staff knowledge gained from on-going,
    day-to-day work with the acquisition and financial assistance
    functions;

-   Review and analysis of acquisition data as reported to the Federal
    Procurement Data System -- Next Generation (FPDS-NG) for \[ period
    of time, e.g., FYs 2003 -- 2005\];

-   Functional review reports for acquisition for Fiscal Years \[state
    period\];

-   Review of acquisition transaction files (sample)

-   U.S. Department of the Interior Annual Report on Performance and
    Accountability;

-   U.S. Department of the Interior and/or Bureau/Office Strategic Plan;

-   Departmental Manual \[identify pertinent parts and chapters\];

-   Staffing and organization charts/descriptions for the
    Bureau's/Region's acquisition function;

-   Contracting Officer's Appointment System/ACMIS data for the
    Bureau/Regional contracting function;

-   Chief of Contracting Officer and staff Annual Performance Plans for
    \[state period\];

-   Copies of draft and final acquisition management review reports of
    field level activities by Bureau/Regional Office from FY's
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_;

-   Pertinent Office of Inspector General and Government Accountability
    Office reports;

-   Bureau/office directives, policies, handbooks, and descriptions of
    procedures involving the acquisition function; and

-   Interviews
    with:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

-   Other: \[list other sources used\]

**ENDNOTES (Optional)**

Include any endnotes from the text of the report, as appropriate.

**RECOMMENDATIONS SUMMARY **

In the following section, repeat your recommendations as stated in each
of the Assessment Observation Summary Records. Consolidating your
recommendations will greatly assist the regional office in preparing its
corrective action plan.

**1. Recommendations Related to: Aligning Acquisition with Bureau's
Missions and Needs**

For example:

Record 1: A.1:

Record 1: B.1:

Record 1: C.1:

Record 1: C.2:

**2. Recommendations Related to: Commitment from Leadership **

**3. Recommendations Related to: Planning Strategically **

**4. Recommendations Related to: Effectively Managing the Acquisition
Process **

**5. Recommendations Related to: Promoting Successful Outcomes of Major
Projects **

**6. Recommendations Related to: Valuing and Investing in the
Acquisition Workforce **

**7. Recommendations Related to: Strategic Human Capital Planning **

**8. Recommendations Related to: Acquiring, Developing, and Retaining
Talent **

**9. Recommendations Related to: Creating Results-Oriented
Organizational Cultures **

**10. Recommendations Related to: Identifying Data and Technology that
Support Acquisition Management Decisions **

**11. Recommendations Related to: Safeguarding the Integrity of
Operations and Data **

**APPENDIX **

**Regional Acquisition Data Profile: **

**Including Top Products/Services**

**ACQUISITION QUESTIONNAIRE **

Possible questions for conducting interviews with acquisition personnel
in the course of reviews are provided below.

**Aligning Acquisition With Bureau's Missions and Needs **

1.What would you say are the top 3 to 5 challenges that you face in
being a Bureau/Regional Contracting Chief?

2\. What are your roles and responsibilities in your bureau?

3\. Would you agree that bureau leaders, management, and staff view the
acquisition function as a strategic asset in achieving their mission or
supporting the bureau's operations at lowest possible cost?

4\. Tell me about your annual performance plan. Does it have metrics
related to acquisition efficiency, effectiveness, and results?

5.How involved is your acquisition function in your bureau's strategic
planning process? Are you aware of your bureau's strategic plan goals?
Are you able to address/support strategic goals through the acquisition
function? Any feedback on the acquisition function's success in
supporting bureau mission/goals?

6.How does your acquisition office communicate and cooperate with other
bureau offices?

7\. How closely does your function coordinate and integrate with your
bureau's budgetary processes, human capital, financial management
functions? Does upper management encourage it?

8.Tell me about your review processes. Do you use checklists? How about
reviews by the Office of the Solicitor? How many reviews in your Region
did you do last year? What do you do with the reviews and corrective
action plans once issued? Have you issued any policies as a result of
review findings? How do you prepare for reviews? Do you review Order
Delegations?

9\. How does bureau leadership communicate the bureau's mission, values,
and guiding principles, as well as its vision and expectations for the
acquisition function to bureau personnel?

10\. Does bureau leadership facilitate and support clear lines of
communication among all parties?

**Policies and Processes **

11\. Do end users of goods and services acquired work with your office
to discuss requirements for meeting their needs? How early in the
process?

12\. How receptive are your stakeholders in evaluating different
acquisition approaches and solutions?

13\. How do you promote coordination among stakeholders as an
acquisition action moves through the various steps in the process?

14\. Does your bureau acquisition function systemically identify and
analyze bureau acquisitions actions planned in the next 12 to 24 months?
Does the acquisition function analyze data for strategic sourcing to
leverage buying power?

15\. Tell me about your vendor information. Do you use the Central
Contractor Registration? How do you conduct market research?

16\. Describe your socio-economic contracting goals and accomplishments.
Describe the goaling process? How about vendor outreach activities?

17\. How involved are you and your staff in your bureau's capital
planning process? Do they participate as part of cross-functional teams
in construction and IT projects?

18\. Do you prepare past performance reports and use them in the
pre-award process?

19\. What, as a manager, do you do to ensure that you have adequate
staff with the right skills, knowledge, and training to implement
policies and processes to oversee contractors and financial assistance
recipients?

20.Do you have access to, and how frequently do you use acquisition and
financial information to monitor and oversee contract actions?

21\. Do you have some process in place for reviewing requirements in
order to choose appropriate instruments, e.g., contract, grant,
cooperative agreement?

**Human Capital **

22\. How would you rate your bureau in its investment in its acquisition
workforce?

23\. Do you work closely with Human Resources in making staff
development decisions?

24\. Do you have a workforce plan for acquisition? Is the acquisition
workforce included in the bureau's workforce plan?

**Knowledge and Information Management **

25\. How closely do you use and track data on contracting for internal
control; to support management decision-making; spend analysis;
authorizing of warrants/appointments; workforce analysis?

26\. How do you find out about changes to the Federal Acquisition
Regulation? E-Gov initiatives? Performance-based acquisition? Grants.gov
goals? How often do you and your staff access your bureau's acquisition
Inter/Intra-net site?

27\. Do you use IDEAS? Electronic Commerce?