On December 30, 2010, NRC released its list of service contracts in accordance with the 

procedures outlined in the November 5, 2010, memorandum from the Administrator, Office of 

Federal Procurement Policy (OFPP), on Service Contract Inventories. On February 23, 2011, 

NRC submitted to OMB Product Service Code (PSC), “Program Management and Support 

Services” as the special interest function that we selected analyzed. 

Consequently, NRC focused its analysis of the service contract inventory on this special interest 

function. In fiscal year 2010, NRC spent $2.9 million on nine different contracts in this area, with 

most of the funds obligated on time and materials and labor hour type contracts. As required by 

Sections 743(e)(3) and (4) of the Federal Activities Reform Act of 1998 and Section C of the 

attachment to the guidance issued by OMB, these nine contracts were reviewed to determine if 

they were poorly performed, as determined by the Contracting Officer, because of costs or 

inferior quality. They were also analyzed to determine if they should be considered for 

conversion to performance by NRC employees in accordance with insourcing guidelines. 

The Contracting Officers of these nine contracts have determined that the work has not been 

poorly performed due to excessive costs or inferior quality. In addition:

(i) It was determined that the work performed under these contracts should not be 

performed by Federal employees in lieu of contractors.

(ii) NRC is in the process of implementing an alternative acquisition approach,

strategic sourcing, in order to better enable the agency to efficiently utilize its 

assets and achieve its public mission. The contracts within the special interest 

function of Procurement Management and Support Services, as well as those in 

the other two categories (that were not selected to be analyzed) where the 

largest percentage of obligations are spent (Technical Assistance and ADP 

Systems Development Services) will be evaluated by commodity councils to 

determine if the contracts are being acquired in the optimal way or if a different 

acquisition approach would better enable NRC to efficiently utilize its resources

and achieve our mission. Teams are being established to study NRC’s spending

in these areas and determine the best way to organize the commodity councils. 

Agency Inventory Analysis – Program Management and Support Services

In accordance with Section 743(e) of the Federal Activities Reform Act of 1998 and Appendix D 

of the OMB guidance, NRC analyzed the contracts in this category as follows:

(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. No personal services contracts were identified during the analysis of 

this category of service contracts.
(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. 

FAR 37.114 is actively being followed during performance of these contracts. 

(iii) The agency is not using contractor employees to perform inherently 

governmental functions. A review of NRC’s FY201 Service Contract Inventory, 

shows that there are no contractors being used 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. Contract scope is 

monitored by the Contracting Officer to ensure that “scope creep” is not 

occurring, especially into inherently governmental functions through contract 

modifications. Contracting Officer’s Representatives (CORs) are required to 

ensure that services provided and invoiced are in accordance with scope of the 

contract; and that work does not change or expand during performance to 

become inherently governmental.

(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. There are sufficient government personnel in place to 

ensure that contractor employees are not performing critical functions to the point 

of affecting NRC’s ability to perform its mission and operations. 

(vi) There are sufficient internal agency resources to manage and oversee contracts 

effectively. There are sufficient internal agency resources to manage and 

oversee contracts effectively. However, the agency continues to study ways in 

which to improve organizational effectiveness.

Based on the analysis above, NRC has not taken any actions to convert functions currently 

being performed by contractors to have them be performed by NRC employees.