Management Advisory 

Report: Review of FEMA 

Region IV Strategic 

Source IDIQ Contract for 

Office Supplies 

January 23, 2017 

OIG-17-27-MA 
OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Washington, DC 20528 / www.oig.dhs.gov 

January 23, 2017 

MEMORANDUM FOR: Gracia Szczech 

Regional Administrator, Region IV 

Federal Emergency Management Agency 

FROM: Thomas M. Salmon 

Assistant Inspector General 

Office of Emergency Management Oversight 

SUBJECT: Management Advisory Report: Review ofFEMA Region 

W Strategic Source IDIQ Contract for Office Supplies 

In August 2016, the Mission Support Division Director, Federal Emergency 

Management Agency (FEMA) Region IV, received emails concerning the possible 

mismanagement of a Department of Homeland Security (DHS) Strategic Source 

Indefinite Delivery/Indefinite Quantity (IDIQ) Contract. These concerns 

included contract funds cancellation, possible fund code misuse, and contract 

oversight conflicts for office supplies from Office Depot. To address these 

concerns, FEMA Region IV requested that OIG conduct a limited review of the 

Division's IDIQ process. Although we did not identify any potential fraud or 

misuse issues, we did identify the need for staff to receive additional training 

concerning IDIQ contracts. This report identifies actions the Mission Support 

Director, Region IV-FEMA can take to enhance the program's effectiveness. 

Background 

The Mission Support Division in FEMA Region IV provides human capital, 

financial, communications/computer, safety, security, facility management, 

and contracting support for the day-to-day operations for the region. IDIQ 

contracts provide for an indefinite quantity of services for a fixed time. IDIQ 

contracts are used when General Services Administration cannot determine, 

above a specified minimum, the precise quantities of supplies or services that 

the government will require during the contract period. IDIQs help streamline 

the contract process and speed service delivery. For example, IDIQ contracts 

may include office supplies, Facilities Maintenance and Management, and 

Seismic/Structural Engineering. 

www.oig.dhs.gov 1 OIG-17-27-MA 
OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

The Contracting Officer (CO) is responsible for entering into, administering, 

and terminating contracts. Additionally, the CO may make related 

determinations and findings, and to the Project Officer (PO), who the CO 

designates, in writing, to assist in administering specific aspects, such as the 

technical performance of the contract. 

The Federal Acquisition Regulation (FAR) authorizes the CO to obtain written 

assurance from responsible fiscal authority that adequate funds are available. 

In accordance with FEMA guidance, FEMA budget officers are responsible for 

ensuring that adequate funds are available. 

Results of Review 

Based on our review of the contract process and supporting documentation for 

this IDIQ contract, we believe the CO and PO performed their duties according 

to Federal statutes, program guidance, and the IDIQ contract. In addition, 

there does not appear to be any internal control issues related to the 

segregation of duties over contract purchases and receipt of goods. 

Staff Needs Additional IDIQ Training 

At the request of the Mission Support Division Director, we reviewed emails 

sent between assigned members of the IDIQ contract team. In the emails, the 

Budget Officer raised concerns about the use of contract funds by the CO and 

the PO. Based on our review, we determined that staff needs additional training 

on the scope and processes related to IDIQ contracts. However, we are also 

concerned that the emails sent by the Budget Officer were unprofessional and 

showed a lack of clarity concerning the roles and responsibilities. 

For example, some of the emails expressed the following concerns: 

(1) Cancellation of funds; 

(2) Misuse of fund codes; and 

(3) PO objectivity to administer the contract’s technical performance. 

Our assessment of these emails and additional interviews with the Mission 

Support staff established that the current Budget Officer might not fully 

understand the government’s policies and procedures concerning the use and 

implementation of an IDIQ contract. 

www.oig.dhs.gov 2 OIG-17-27-MA 
 

OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Conclusion 

Although we determined that the contract process and supporting 

documentation and internal controls appeared adequate, we did note that the 

Mission Support Division should provide additional training on IDIQ contracts. 

We conducted this limited review based on a request for assistance from FEMA 

Region IV; however, we may conduct a more comprehensive review of FEMA’s 

contracts and supporting processes in the future. 

Management Comments and OIG Analysis 

On September 9, 2016, we discussed the results of our contract review with the 

FEMA Region IV Deputy Regional Administrator and the CO for this IDIQ 

contract. In addition, we discussed with the Mission Support Division Director 

the results of our review of email correspondence between the Budget Officer 

and Mission Support staff. We advised the Mission Support Division Director to 

provide staff with additional training on the roles and responsibilities related to 

an IDIQ contract. FEMA officials generally agreed with our findings and 

planned to take action to address this issue. 

Objective, Scope, and Methodology 

In August 2016, we received a request from the Mission Support Division 

Director, FEMA-Region IV to review concerns regarding the budget obligations 

and purchases related to an IDIQ contract valued at more than $13,000. FEMA 

Region IV decided to use an IDIQ contract because of a partnership between 

DHS and the General Services Administration to purchase office supplies from 

Office Depot. We conducted our fieldwork in Atlanta, Georgia, during the week 

of September 5, 2016. 

We reviewed the IDIQ contract provisions, ordering and receiving files, and 

expenditure records. We also reviewed policies, procedures, Federal 

regulations; Appropriations Law; the FAR; and FEMA contract guidance. At the 

request of the Mission Support Division Director, we reviewed all email 

correspondence among Mission Support Division staff related to the IDIQ 

contract. In addition, we interviewed FEMA officials with knowledge of the IDIQ 

contract, and ordering and receiving duties related to this IDIQ contract. 

DHS Office of Inspector General was established by the Homeland Security Act 

of 2002 (Public Law 107–296) by amendment to the Inspector General Act of 

1978. We conducted this review under the authority of the Inspector General 

Act of 1978, as amended, and according to the Quality Standards for 

Inspection and Evaluation issued by the Council of the Inspectors General on 

Integrity and Efficiency. 

www.oig.dhs.gov 3 OIG-17-27-MA 
OFFICE OF INSPECTOR GENERAL 

Department of Homeland Security 

Please call me with any questions or your staff may contact Paul Wood, Acting 

Deputy Assistant Inspector General, Office of Emergency Management 

Oversight at (202) 254-4100, or Nigel R. Gardner, Audit Manager at 

(202) 254-4385. 

www.oig.dhs.gov 4 OIG-17-27-MA 
 

 

 

 

 

 

 

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