On January 27, 2012, NRC released its list of service contracts in accordance with the 

procedures outlined in the November 5, 2010 and December 19, 2011 memoranda from the 

Administrator, Office of Federal Procurement Policy (OFPP), on Service Contract Inventories. 

On December 23, 2011, NRC submitted to OMB Product Service Code (PSC), R408, “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 2011, NRC spent $5.5 million on five different contracts and two GSA 

Schedule Orders in this area, with approximately 94% of those 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 five contracts and two orders 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 awards 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. Work performed by 

contractors rather than Federal employees does not jeopardize NRC’s ability to 

perform its mission and operations. 

(ii) NRC has implemented 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 where the largest percentage of obligations are spent 

(Information Technology-related services and Technical Assistance) are being 

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. 

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 FY2011 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.