IG-01-041

AUDIT

REPORT PROCUREMENT WORKFORCE PLANNING

September 27, 2001

National Aeronautics and

Space Administration

OFFICE OF INSPECTOR

GENERAL
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Acronyms

CCI Consolidated Contracting Initiative

DOD Department of Defense

DODIG Department of Defense Inspector General

FAR Federal Acquisition Regulation

FASA Federal Acquisition Streamlining Act

FY Fiscal Year

GAO General Accounting Office

GPRA Government Performance and Results Act

NCIP NASA Contracting Intern Program

OFPP Office of Federal Procurement Policy

OMB Office of Management and Budget

OPM Office of Personnel Management
W September 27, 2001

TO: A/Administrator

FROM: W/Inspector General

SUBJECT: INFORMATION: Procurement Workforce Planning

Report Number IG-01-041

The NASA Office of Inspector General has completed an audit of Procurement Workforce

Planning. We found that NASA has taken several positive steps to plan for its future procurement

workforce needs. However, the number of potential procurement retirees increased from about 40

percent (269 of 679 contract specialists) as of September 1997 to about 42 percent (278 of 669

contract specialists) as of October 2000. As a result, NASA does not have the assurance that it

will have enough adequately trained procurement staff at NASA Centers to effectively handle

procurement workload demands.

Background

NASA is participating in several acquisition reform initiatives intended to streamline the procurement

process and to minimize the overhead expenses associated with procurement actions. These

initiatives include Simplified Acquisition methods, Multiple Award Contracts, and the Consolidated

Contracting Initiative. Also, working with the Office of Federal Procurement Planning (OFPP)

guidance, NASA has established specific criteria regarding the level of training its procurement

workforce must complete.

Recommendations

We recommended that the Associate Administrator for Procurement continue to pursue education,

training, and development of staff to meet the required certification levels for existing staff. This

action would ensure that the existing procurement workforce has the appropriate training and

certification necessary to function at maximum efficiency. We also recommended that the Associate

Administrator for Procurement evaluate the ongoing results of the NASA Contracting Intern

Program (NCIP) to determine whether changes may be necessary to increase the retention rate of

interns. By increasing the retention rate, NASA will achieve a greater return on the resources

invested in training interns. We further recommended that the Associate Administrator for

Procurement
2

continue to work with OFPP to develop procurement performance measures that may be used to

evaluate staffing requirements. With the availability of these performance measures, NASA should

be able to more accurately assess its procurement workforce needs and more effectively plan to

meet those needs.

Management Response

Management concurred with the recommendations. NASA currently has 85 percent of its targeted

workforce certified at the correct certification levels and will work aggressively to encourage the

remaining 15 percent to pursue the necessary steps to become certified. To improve the retention

rate of the NCIP, this year (fall 2001), NASA plans to recruit and hire only college graduates as

interns. NASA was the first agency to submit to OFPP and to receive approval for its NASA

Career Acquisition Training Handbook. Management will continue to work with and provide data

to OFPP on education and training of its acquisition workforce.

Details on the status of the recommendations are in the Recommendations section of the report.

[original signed by]

Roberta L. Gross

Enclosure

Final Report on Audit of Procurement Workforce Planning
PROCUREMENT WORKFORCE PLANNING
W September 27, 2001

TO: H/Associate Administrator for Procurement

FROM: W/Assistant Inspector General for Audits

SUBJECT: Final Report on Procurement Workforce Planning

Assignment Number A-00-058-00

Report Number IG-01-041

The subject final report is provided for your information and use. Please refer to the Executive

Summary for the overall audit results. Our evaluation of your response has been incorporated into

the body of the report. We consider management’s corrective actions responsive for all

recommendations, and the actions are sufficient to close the recommendations for reporting

purposes.

If you have questions concerning the report, please contact Mr. Lorne A. Dear, Program Director,

Procurement Audits, at (818) 354-5634; Mr. Tony A. Lawson, Program Manager, at (301) 286-

6524; or Mr. Walter K. Curtis, Auditor-in-Charge, at (818) 354-9746. We appreciate the

courtesies extended to the audit staff. The final report distribution is in Appendix D.

[original signed by]

Alan J. Lamoreaux

Enclosure
2

cc:

AI/Associate Deputy Administrator

AB/Associate Deputy Administrator for Institutions

B/Acting Chief Financial Officer

B/Comptroller

BF/Director, Financial Management Division

G/General Counsel

JM/Director, Management Assessment Division

JR/Director, Contractor Industrial Relations Office

HK/Chair, Headquarters Exchange Council

ARC/Director, Ames Research Center

DFRC/Director, Dryden Flight Research Center

GRC/Director, Glenn Research Center at Lewis Field

GSFC/Director, Goddard Space Flight Center

JSC/Acting Director, Lyndon B. Johnson Space Center

KSC/Director, John F. Kennedy Space Center

LaRC/Director, Langley Research Center

MSFC/Director, George C. Marshall Space Flight Center

SSC/Acting Director, Stennis Space Center

JPL/Manager, NASA Management Office, Jet Propulsion Laboratory
Contents

Executive Summary, i

Introduction, 1

Background, 2

Finding and Recommendations, 3

Availability of Adequately Trained Procurement Personnel, 3

Appendix A – Objectives, Scope, and Methodology, 9

Appendix B – Acquisition Reform Initiatives, 11

Appendix C – Management’s Response, 13

Appendix D – Report Distribution, 17
NASA Office of Inspector General

IG-01-041 September 27, 2001

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Procurement Workforce Planning

Executive Summary

Background. NASA is participating in several acquisition reform initiatives that are intended to

streamline the procurement process and minimize the overhead expenses associated with

procurement actions. Some of these initiatives include Simplified Acquisition methods, Multiple

Award Contracts, Purchase Cards, and the Consolidated Contracting Initiative.

NASA has established specific criteria regarding the level of training its procurement workforce

must complete. The OFPP also provides guidance on education, training, and career development

for procurement personnel. Additionally, NASA has established several performance measures for

procurement, including the following:

• Government Performance and Results Act. NASA provides performance measures in

areas such as performance-based contracting and the use of small disadvantaged businesses.

NASA does not provide any information under GPRA related to the number or experience of

its procurement workforce.

• OFPP Acquisition System Performance Measures Report. Annually, NASA provides

acquisition system information to the OFPP on education and training; cost, schedule, and

performance; and purchase card usage. This information includes the number and percentage of

procurement employees who have met the education and training requirements.

Objectives. The overall objective was to determine whether the NASA Office of Procurement

was adequately planning for its procurement workforce needs. The specific objectives were to

determine whether: (1) adequately trained procurement staff will exist at Centers based on

procurement forecasts; (2) the contracting intern program has been effective in recruiting and

retaining new staff; and, (3) appropriate investments in education, training, and development exist

for procurement staff.

Appendix A contains further details on the audit objectives, scope, and methodology.

Results of Audit. NASA has taken several positive steps to plan for its future procurement

workforce needs. Despite the efforts, however, NASA does not have assurance it will have enough

adequately trained procurement staff at NASA Centers to effectively handle procurement workload

demands. A NASA Office of Procurement study performed in 1997 showed that Agencywide

attrition of procurement employees
ii

through retirement could be as high as 40 percent (269 of 679 contract specialists) by the end of

2007. In response to the study, the Office of Procurement developed a leadership plan and

established a contracting intern program. That office also increased its emphasis on education,

training, and development of existing procurement staff. Our audit showed that the number of

potential procurement retirees has increased from about 40 percent (269 of 679 contract

specialists) as of September 1997 to about 42 percent (278 of 669 contract specialists) as of

October 2000.

NASA has also initiated a number of acquisition reform initiatives that affect the number and types

of contracts in an effort to streamline the acquisition process, including the involvement of

procurement personnel. Further, the Agency is reporting several procurement performance

measures for the Government Performance and Results Act (GPRA), and the OFPP is developing a

"cost to spend" metric to evaluate procurement processing costs. The GPRA information the

Agency is reporting, however, does not include performance measures to determine whether

sufficient procurement personnel will be available to effectively handle the projected workloads.

Recommendations. The Associate Administrator for Procurement should: (1) continue to pursue

education, training, and development of staff to meet required certification levels for existing staff;

(2) evaluate the ongoing results of the NCIP to determine whether changes may be necessary to

increase the retention rate of interns; and (3) continue to work with OFPP to develop procurement

performance measures that may be used to evaluate staffing requirements.

Management’s Response. Management concurred with all the recommendations and has

implemented the recommended actions.

Evaluation of Management’s Response. We consider management’s implemented actions

responsive to the recommendations. Our detailed response to management’s comments is in the

recommendations section of the report.
NASA Office of Inspector General

IG-01-041 September XX, 2001

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Procurement Workforce Planning

Introduction

The NASA Office of Inspector General (OIG) has completed an audit of procurement workforce

planning. We performed this audit because of increasing concerns about human capital, an issue

confronting many Federal agencies as a significant portion of the workforce becomes eligible for

retirement from Federal service. The General Accounting Office (GAO) has defined human capital

as people whose value can be enhanced through investment.1

In 1997, the OFPP directed Federal agencies to take actions in the areas of accession,2 education,

training, and career development to ensure an adequate number of qualified personnel within their

respective acquisition workforces.3 The NASA OIG identified human capital as one of its top 10

management challenges for fiscal year (FY) 2001, stating that NASA faces the loss of significant

procurement expertise through the year 2007. NASA must ensure proper levels of staffing to

perform contracting requirements and properly monitor prime contracts and subcontracts. The

Comptroller General also has testified on the issue of human capital.4 Further, the GAO has

reported to the Congress on workforce issues and recently added human capital to its list of top 10

management concerns that Federal agencies must face.5

In May 2000, the NASA Inspector General testified before the Congress on Federal employee

incentives to attract and maintain a skilled workforce. Her testimony addressed some of the effects

of NASA's failure to recruit, train, and retain the proper mix of a skilled workforce.6 Her testimony

also addressed the problems faced by the NASA OIG itself in recruiting certain skilled information

technology (IT) professionals such as an IT criminal investigator in the Silicon Valley area of

California because of the high cost of housing and the inability to offer a housing allowance similar to

that offered by private industry. The Inspector General later testified before the Congress on the

 

1

 On February 1, 2001, the Comptroller General (who heads the GAO) testified before the Congress on the issue

of human capital, stating that "today's Federal human capital strategies are not appropriately constituted to meet

the current and emerging needs of the Federal government and the nation's citizens."

2

 "Accession" is the acquisition of additional personnel.

3

 The OFPP Policy Letter No. 97-01, is dated September 12, 1997.

4

 See footnote 1.

5

 The GAO Letter B-285463 to the Chairman, Committee on Commerce, Science, and Transportation, United

States Senate, is dated August 15, 2000.

6

 The Inspector General testified before the Senate Subcommittee on Oversight of Government Management,

Restructuring and the District of Columbia on May 2, 2000.
2

lack of management resources contributing to unsuccessful missions7 and, after years of focusing on

downsizing efforts, NASA's need to develop a workforce strategy addressing recruitment, training,

and retention of personnel.8

The overall audit objective was to determine whether NASA is adequately planning for its

procurement workforce needs. Details on our audit objectives, scope, and methodology are in

Appendix A.

Background

Acquisition Reform Initiatives. NASA is participating in several acquisition reform initiatives that

are intended to streamline the procurement process and minimize the overhead expenses associated

with procurement actions. Some of these initiatives include Simplified Acquisition methods, Multiple

Award Contracts, Purchase Cards, and the Consolidated Contracting Initiative. (See Appendix B

for details on these initiatives.)

NASA Performance Measures. NASA has established specific criteria9 regarding the level of

training its procurement workforce must complete.10 The OFPP also provides guidance on

education, training, and career development for procurement personnel. Additionally, NASA has

established several performance measures for procurement, including the following:

• Government Performance and Results Act. NASA provides performance measures in

areas such as performance-based contracting and the use of small disadvantaged businesses.

NASA does not provide any information under GPRA related to the number or experience of

its procurement workforce.

• OFPP Acquisition System Performance Measures Report. Annually, NASA provides

acquisition system information11 to the OFPP on education and training;

 

7

 In this testimony, the Inspector General was citing findings of the Mars Climate Orbiter Mishap Investigation

Board’s Report on Project Management. This report, dated March 13, 2000, states that the lack of adequate

staffing contributed, in part, to the mission failure.

8

 The Inspector General testified before the House Subcommittee on National Security, Veterans Affairs, and

International Relations on March 15, 2001.

9

 The NASA Procurement Career Development Training Policy, dated March 14, 1998, prescribes procedures for

a NASA career development program for procurement personnel consistent with the general policies and

authorities stated in the OFPP Letter 97-01, "Policy Letter on Procurement System Education, Training and

Experience Requirements for Acquisition Personnel," dated September 25, 1997.

10 Section 4307 of the Clinger-Cohen Act (Public Law 104-106) requires, among other matters, that each executive

agency establish policies and procedures for the effective management of the acquisition (that is, procurement)

workforce of the agency. This section addresses the education, training, career development, and performance

incentives that should be offered to each member of the procurement workforce. This section also discusses the

achievement of an agency's cost, schedule, and performance goals and recommends that agencies relate this

achievement to performance incentives for the procurement workforce.

11 Section 4307 of the Clinger-Cohen Act (Public Law 104-106) requires agencies to collect and maintain

standardized acquisition (that is, procurement) workforce information.
3

cost, schedule, and performance; and purchase card usage. This information includes the

number and percentage of procurement employees who have met the education and training

requirements.

Department of Defense Inspector General Report.12 A recent Department of Defense

Inspector General (DODIG) report concluded that "... there is cause for serious concern in the

likelihood of the DOD acquisition workforce losing experienced personnel through attrition by FY

2005 and in the overall disconnects between workload forecasts, performance measures,

productivity indicators, and plans for workforce sizing and training." The DODIG identified the

following impacts of the reduced acquisition workforce:

• increased backlog in closing out completed contracts,

• increased program costs resulting from contracting for technical support versus using inhouse technical support,

• insufficient personnel to fill in for employees on deployment,

• insufficient staff to manage requirements,

• reduced scrutiny and timeliness in reviewing acquisition actions,

• personnel retention difficulty,

• increase in procurement action lead time,

• some skill imbalances, and

• lost opportunities to develop cost savings initiatives.

Office of Personnel Management (OPM) Special Study. In December 1999, the OPM issued

a Report of a Special Study entitled “The Three Rs: Lessons Learned from Recruitment,

Relocation, and Retention Incentives.” This study addresses a variety of incentives that Federal

agencies and other organizations are using or can use to recruit and retain key personnel. These

incentives include various recruiting and retention bonuses and allowances. The study also cites

tuition forgiveness as a tool used successfully in the non-Federal public and private sector but not

widely available in the Federal sector.

Availability of Adequately Trained Procurement Personnel

Change in the Number of Potential Retirees. In 1997, the NASA Office of Procurement

estimated that 23 percent of its Agencywide procurement workforce would be retiring within 10

years under a better case scenario13 and that 40 percent would be retiring within 10 years under a

worst case scenario.14 During this audit, we found these NASA-wide figures had increased to 27

percent and 42 percent, respectively, as of October 2000. This resulted in an overall Agencywide

increase of 17 percent and 5 percent, respectively. At Goddard Space Flight Center (Goddard)

and Johnson Space Center (Johnson), the two NASA Centers with the highest annual procurement

 

12 DoD Acquisition Workforce Reduction Trends and Impacts, Report No. D-2000-088, February 29, 2000.

13 A better case scenario is one in which the employee works 5 years beyond the date at which he/she becomes

eligible to retire.

14 A worst case scenario is one in which the employee retires immediately upon becoming eligible.
4

expenditures, management estimated significant increases in projected 10-year attrition through

retirement, as follows:

Projected Procurement Workforce Attrition

through Retirement

Better Case Worst Case

Percentage of

Potential Retirees

Percentage of

Potential Retirees

Location 1997 2000

Increase in

Potential

Retirees 1997 2000

Increase in

Potential

Retirees

Goddard 12 16 33 percent 25 29 16 percent

Johnson 22 26 18 percent 35 42 20 percent

Recent NASA Procurement Management Survey Reports at Goddard15 and Johnson16 cited the

following concerns regarding the loss of experienced staff:

• During interviews with the Office of Procurement survey team, procurement customers at

Goddard expressed the opinion that backlogs and delays in the acquisition process are a

continuing result of a previous reduction in the procurement workforce.

• The Johnson survey report states that procurement staffing at Johnson decreased by about 30

percent from FY 1996 to FY 2000. (During our audit, 25 percent (27 of 109) of the

procurement workforce was eligible or would become eligible to retire within the next 5 years.)

In interviews with the Office of Procurement survey team, procurement personnel, customers,

and the Johnson legal staff, expressed concerns about the organization’s ability to sustain its

level of performance if the staffing level remains as it is or decreases.

Other NASA Centers may also be affected by the loss of experienced staff. For example, an

October 2000 Procurement Management Survey Report at Langley Research Center (Langley)

discussed turnover in the procurement workforce from 1998 through 2001. Fifteen (21 percent) of

the 72 contract specialists on board in October 2000 had been at Langley 2 years or less. Further,

5 of the 15 specialists were entry-level employees.

In 1997, Marshall Space Flight Center (Marshall) showed potential retirement of 20 percent and 38

percent for its better and worst case scenarios, respectively. These percentages increased to 26

percent and 40 percent, respectively, at the time of our audit in October 2000.

 

15 The NASA Office of Procurement conducted the Procurement Management Survey at Goddard in January

2001. We extracted this information from the draft survey report; the final report has not yet been issued.

16 The Johnson Space Center Procurement Management Survey Report was issued March 10, 2000.
5

NASA Efforts to Address Workforce Needs

NASA procurement obligations have remained relatively level from FY 1993 through FY 2000.

The number of procurement personnel, however, declined from 1,036 in FY 1993 to 740 in FY

2000 as shown in the following chart. NASA lost an additional 11 procurement personnel from

November 2000 through February 2001--a 30-percent reduction since 1993.

 Comparison of Procurement Staffing* to Annual Obligations

FY 1993--FY 2000

*

Procurement staffing includes the GS-1102 Contract Specialist, GS-1105 Purchasing Specialist, and

GS-1106 Procurement Clerks and Technicians. These positions manage, supervise, perform, or develop policies

and procedures for professional work involving the procurement of supplies, services, construction, and

research and development.

During the last 3 years, NASA has initiated several actions to address a potential shortage in its

workforce.

Functional Leadership Plan. A May 2000 NASA Office of Procurement Functional Leadership

Plan17 describes the Office's overall purpose and direction including goals, objectives, and

performance measures to be used to evaluate success. The plan identifies a requirement for

contract specialists to complete specific education requirements, developmental assignments, and

mandatory training before being promoted. The plan also addresses major reform initiatives

(discussed earlier in this report in the section entitled, Acquisition Reform Initiatives) and measures

of success. Because the plan is less than 1 year old, however, NASA has not yet been able to

quantify the success of any actions on the procurement workforce.

 

17 The NASA Strategic Management Handbook requires a Functional Leadership Plan.

Comparison of Procurement Staffing to Annual Obligations

700

800

900

1,000

1,100

1,200

1,300

1,400

1993 1994 1995 1996 1997 1998 1999 2000

Fiscal Year

Staffing

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

$14,000

Obligations in Millions

Staffing

Obligations
6

NASA Contracting Intern Program (NCIP). The NCIP goal is to provide NASA a valuable

resource of candidates for employment. The program consists of a co-op phase18 and an intern

phase.19 NASA selected 10 students in 1999 to participate during the first year of the NCIP. Of

the 10 students, only 2 are still employed at NASA. In 2000, the program's second year, NASA

selected 19 students, and as of the time of our audit, 17 were still participating in the program. The

effectiveness of the program can be better measured after the second-year students have completed

the intern phase. 

Education, Training, and Development. The NASA Office of Procurement has increased its

emphasis on the education, training, and development of procurement personnel. This emphasis

imposes educational requirements to become a contract specialist and annual continuing education

requirements to remain in that career field. As a result of this increased emphasis, the percentage of

contract specialists who are certified at the level required for the work performed20 has increased in

the last year. Specifically, the number of personnel in the GS-12 contract specialist series21,22

certified at Level II23 has increased from 90 of 208 (43 percent) in June 1999 to 153 of 218 (70

percent) in September 2000. Similarly, the number of GS-13 through GS-15 contract specialists

certified at Level III24 has increased from 152 of 348 (44 percent) to 266 of 333 (80 percent)

during the same period. However, NASA still has contract specialists who are not certified at the

level commensurate with their grade level and has new contract specialists entering the workforce

who require certification.

The NASA Office of Procurement has made appropriate investments in the education, training, and

development of procurement personnel. The objective of the training program is to provide

procurement professionals a standardized, consistent, and high-quality training program to prepare

them to meet career changes and challenges. Career development is accomplished through a

 

18 The co-op phase involves hiring college students in their sophomore or junior year and assigning them to

work at a specific NASA Center. The student alternates time spent attending school and working at the Center

and completes at least 640 hours at the Center before graduation. Assuming successful job performance, upon

graduation, the student may be hired as a permanent NASA employee and assigned to another NASA Center.

19 The intern phase covers the remainder of the 30-month NCIP during which the new employee completes three

or four required contracting courses while working in the procurement function.

20 NASA requires that GS-1102 contract specialists complete specific contracting courses to receive certifications

that correspond to the grade level at which they are working. The certification levels are I, II, and III.

21 The general schedule is the broadest subdivision of the classification system covered by Title 5, U.S. Code.

The general schedule includes a range of levels of difficulty and responsibility for positions for grades GS-1 to

GS-15. "GS" designates the general schedule for supervisory and nonsupervisory positions at all of those grade

levels.

22 A series is a subdivision of an occupational group consisting of positions similar as to a specialized line of

work and qualification requirements. A title and number such as the Contracting Series, GS-1102, or Purchasing

Series, GS-1105, designate series.

23 The Level II Contract Specialist's development continues, including on-the-job rotational assignments, but the

length of time an employee spends in each position generally increases.

24 The Level III Contract Specialist possesses in-depth knowledge in his or her functional areas and of the entire

procurement process.
7

combination of work assignments, job rotation, procurement-specific training courses, education,

and self-development programs.

Conclusion

NASA has made efforts to plan for future procurement workforce needs. However, the Agency

must continue to pursue initiatives to obtain sufficient experienced procurement personnel given the

acquisition reform changes that affect the number and type of contracts. Other initiatives could

include, for example, the consideration of recruitment and retention bonuses and allowances,

relocation bonuses and incentives, and tuition forgiveness.

Recommendations, Management’s Response, and Evaluation of

Response

The Associate Administrator for Procurement should:

1. Continue to pursue education, training, and development of staff to meet

required certification levels for existing staff.

Management’s Response. Concur. The Associate Administrator stated that NASA currently

has 85 percent of its targeted workforce certified at the correct certification levels and will work

aggressively to encourage the remaining 15 percent to pursue the necessary steps to become

certified. See Appendix C for the complete text of management’s comments.

Evaluation of Response. Management’s completed actions are responsive to the

recommendation. Management’s actions are sufficient to close the recommendation for reporting

purposes.

2. Evaluate the ongoing results of the NCIP to determine whether changes may be

necessary to increase the retention rate of interns.

Management’s Response. Concur. The Associate Administrator stated that to improve the

retention rate, NASA is planning this year (fall 2001) to recruit and hire only college graduates as

interns. They will be full-time, permanent NASA employees.

Evaluation of Response. Management’s completed actions are responsive to the

recommendation. Management’s actions are sufficient to close the recommendation for reporting

purposes.

3. Continue to work with OFPP to develop procurement performance measures

that may be used to evaluate staffing requirements.
8

Management’s Response. Concur. The Associate Administrator stated that NASA has worked

closely with OFPP in developing performance measures and continues to provide data to OFPP on

education and training of the acquisition workforce.

Evaluation of Response. Management’s completed actions are responsive to the

recommendation. Management’s actions are sufficient to close the recommendation for reporting

purposes. 
9

Appendix A. Objectives, Scope, and Methodology

Objectives

The overall objective was to determine whether the NASA Office of Procurement was adequately

planning for its procurement workforce needs. The specific objectives were to determine whether:

• Adequately trained procurement staff will exist at Centers based on procurement forecasts;

• the contracting intern program has been effective in recruiting and retaining new staff; and,

• appropriate investments in education, training, and development exist for procurement staff.

Scope and Methodology

We reviewed applicable regulations and policies and documentation from NASA and other

Government agencies.

During the audit, we:

• Researched Office of Management and Budget guidance, the Federal Acquisition Regulation

(FAR), and the NASA FAR Supplement for criteria related to the qualifications and workload

of procurement personnel.

• Obtained current procurement staffing information from each NASA Center to establish the

number of procurement personnel and the certification level and training of those personnel.

• Obtained historical procurement data and procurement projections from each NASA Center to

compare to the procurement staffing information that the Office of Procurement provided.

• Reviewed and discussed the workforce planning process with procurement managers at NASA

Headquarters, Goddard, Johnson, and Marshall.

• Evaluated the effectiveness of the NASA Contracting Intern Program.

Appendix A

Audit Field Work
10

We conducted audit field work from September 2000 through February 2001 at NASA

Headquarters, Goddard Space Flight Center, Johnson Space Center, and Marshall Space Flight

Center. We also gathered procurement workforce data from each of the other NASA Centers.

We performed the audit in accordance with generally accepted government auditing standards. 
11

Appendix B. Acquisition Reform Initiatives

Simplified Acquisition Threshold. The Federal Acquisition Regulation (FAR) Part 13.003 states

that "[a]gencies shall use simplified acquisition procedures to the maximum extent practicable for all

purchases of supplies or services not exceeding the simplified acquisition threshold." Simplified

acquisitions are the acquisitions of supplies and services, including construction, research and

development, and commercial items that do not exceed the simplified acquisition threshold of

$100,000. The threshold is $100,000, except that the threshold is $200,000 in the case of any

contract to be awarded and performed, or purchase to be made, outside the United States in

support of a contingency operation (as defined in 10 U.S.C. 101(a)(13)) or a humanitarian or

peacekeeping operation (as defined in 10 U.S.C. 2302(8) and 41 U.S.C. 259(d)). The FAR

prescribes simplified acquisition procedures intended to:

• reduce administrative costs;

• improve opportunities for small, small disadvantaged, and women-owned small business

concerns to obtain a fair proportion of Government contracts;

• promote efficiency and economy in contracting; and

• avoid unnecessary burdens for agencies and contractors.

Multiple Award Contracts. The Federal Acquisition Streamlining Act (FASA) of 1994

authorized agency heads to enter into multiple award delivery and task order contracts for the

procurement of goods and services. Multiple award contracts occur when two or more contracts

are awarded from one solicitation. FASA recommends that agencies use multiple awards and

requires that the implementing FAR "establish a preference for awarding, to maximum extent

practicable, multiple task or delivery order contracts for the same or similar services or property."

Multiple award contracts are excellent tools for avoiding duplicative solicitations and for accelerating

the contracting process.

Purchase Cards. FAR Part 13.003 states that “... agencies shall use the Governmentwide

commercial purchase card and electronic purchasing techniques to the maximum extent practicable

in conducting simplified acquisitions.” Part 13.201 states that the Governmentwide commercial

purchase card shall be the preferred method to purchase and pay for micropurchases (that is,

purchases less than $2,500). Part 13.301 states that the Governmentwide commercial purchase

card is authorized for use in making and/or paying for the purchase of supplies, services, or

construction. The card may be used only for purchases that are otherwise authorized by law or

regulation. NASA reported to the OFPP that in FY 2000, NASA employees used purchase cards

to complete 94 percent of the Agency's micropurchases with a resultant cost savings of $12.6

million.

Consolidated Contracting Initiative. The Agency's Consolidated Contracting Initiative (CCI)

goal is to develop a core of world-class contracts that will enable NASA to acquire common goods

and services quickly, at fair and reasonable prices, and at a low administrative cost. Many of the

contracts that are accessible through the CCI allow electronic ordering through the Internet. The

General Services Administration has cited
12

Appendix B

NASA's CCI as an example of making greater use of existing contracts to meet common needs.

The Office of Management and Budget 1999 report to the Congress on "Electronic Purchasing and

Payment in the Federal Government" states that the CCI has substantially increased NASA's use of

existing contracts--lessening time spent on acquisition-related tasks, minimizing contract duplication,

reducing closeout backlogs, and improving contract cooperation with other Federal agencies.
13

Appendix C. Management’s Response
14

Appendix C
15

Appendix C
16

Appendix C
17

Appendix D. Report Distribution

National Aeronautics and Space Administration (NASA) Headquarters

A/Administrator

AI/Associate Deputy Administrator

AA/Chief of Staff

AB/Associate Deputy Administrator for Institutions

B/Acting Chief Financial Officer

B/Comptroller

BF/Director, Financial Management Division

G/General Counsel

H/Associate Administrator for Procurement

HK/Director, Contract Management Division

HS/Director, Program Operations Division

J/Associate Administrator for Management Systems

JM/Director, Management Assessment Division

L/Acting Associate Administrator for Legislative Affairs

M/Associate Administrator for Space Flight

R/Associate Administrator for Aerospace Technology

S/Associate Administrator for Space Science

Y/Associate Administrator for Earth Science

NASA Centers

Director, Ames Research Center

Director, Dryden Flight Research Center

Director, Glenn Research Center at Lewis Field

Director, Goddard Space Flight Center

Acting Director, Lyndon B. Johnson Space Center

Director, Kennedy Space Flight Center

Director, Langley Research Center

Director, George C. Marshall Space Flight Center

Acting Director, Stennis Space Center

Chief Counsel, John F. Kennedy Space Center

Non-NASA Federal Organizations and Individuals

Assistant to the President for Science and Technology Policy

Deputy Associate Director, Energy and Science Division, Office of Management and

 Budget

Branch Chief, Science and Space Programs Branch, Energy and Science Division, Office

 of Management and Budget
18

Appendix D

Managing Director, Acquisition and Sourcing Management Team, General Accounting

 Office

Senior Professional Staff Member, Senate Subcommittee on Science, Technology, and Space

Chairman and Ranking Minority Member – Congressional Committees and

Subcommittees

Senate Committee on Appropriations

Senate Subcommittee on VA, HUD, and Independent Agencies

Senate Committee on Commerce, Science, and Transportation

Senate Subcommittee on Science, Technology, and Space

Senate Committee on Governmental Affairs

House Committee on Appropriations

House Subcommittee on VA, HUD, and Independent Agencies

House Committee on Government Reform and Oversight

House Subcommittee on Government Efficiency, Financial Management, and 

Intergovernmental Relations

House Subcommittee on National Security, Veterans Affairs, and International Relations

House Subcommittee on Technology and Procurement Policy

House Committee on Science

House Subcommittee on Space and Aeronautics, Committee on Science

Congressional Member

Honorable Pete Sessions, U.S. House of Representatives
NASA Assistant Inspector General for Audits

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Major Contributors to the Report

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