U.S. ENVIRONMENTAL PROTECTION AGENCY

OFFICE OF INSPECTOR GENERAL

Review of Hotline Complaint on 

EPA’s Pre-Award Activities for 

Multiple Award Contracts at the 

National Computer Center 

Report No. 13-P-0220 April 15, 2013 

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Report Contributors:	 Rudolph M. Brevard

 Warren Brooks 

 Scott Sammons 

Abbreviations 

EPA U.S. Environmental Protection Agency 

NCC National Computer Center 

OIG Office of Inspector General 

Hotline 

To report fraud, waste, or abuse, contact us through one of the following methods: 

email: OIG_Hotline@epa.gov write: EPA Inspector General Hotline 

phone: 

fax: 

1-888-546-8740 

202-566-2599 

1200 Pennsylvania Avenue, NW 

Mailcode 2431T 

online: http://www.epa.gov/oig/hotline.htm Washington, DC 20460 
 

 

U.S. Environmental Protection Agency 13-P-0220 

April 15, 2013 Office of Inspector General 

At a Glance
 

Why We Did This Review 

We reviewed pre-award 

activities for multiple award 

contracts at the U.S. 

Environmental Protection 

Agency’s National Computer 

Center. The review was 

conducted in response to an 

Office of Inspector General 

hotline complaint. The 

complaint alleged that: 

 The NCC did not provide a 

fair opportunity to all 

vendors in a recent request 

for proposal for the 

acquisition of information 

technology equipment. 

 EPA contractor personnel 

disclosed misleading 

information to a vendor 

regarding the outcome of 

the selection process. 

This report addresses the 

following EPA Goal or 

Cross-Cutting Strategy: 

 Strengthening EPA’s 

workforce and capabilities. 

For further information, contact 

our Office of Congressional and 

Public Affairs at (202) 566-2391. 

The full report is at: 

www.epa.gov/oig/reports/2013/ 

20130415-13-P-0220.pdf 

Review of Hotline Complaint on EPA’s 

Pre-Award Activities for Multiple Award 

Contracts at the National Computer Center

 What We Found 

We found no evidence to support allegations made in the complaint. However, 

we determined that the EPA could improve communications with vendors during 

pre-award activities. We found instances where there were opportunities to 

improve communication with vendors that could help thwart misunderstandings 

and confusion related to the federal acquisition process. Federal guidance 

recommends that information be communicated to relevant personnel at all levels 

within an organization, including outside organizations. There was no evidence 

that the NCC communicated guidelines or regulations related to acquisitions to 

the hotline complainant (a vendor) during initial pre-award activities. Without 

communicating guidelines and regulations in initial communications with vendors, 

misunderstandings and false expectations related to the acquisition process 

could arise. 

 Recommendations and Agency Corrective Actions 

We recommend that the Director, National Computer Center: 

1. Develop disclosure language outlining communication protocols between 

the agency and vendors to include all written communications with 

vendors during pre-award activities. 

2. Distribute a memorandum to managers emphasizing the importance of 

implementing protocols developed in response to recommendation 1. 

The agency agreed with our recommendations and developed a communications 

protocol and guidelines and communicated those to all NCC staff. 
 

 

 

 

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

WASHINGTON, D.C. 20460 

THE INSPECTOR GENERAL 

April 15, 2013 

MEMORANDUM 

SUBJECT:	 Review of Hotline Complaint on EPA’s Pre-Award Activities for 

Multiple Award Contracts at the National Computer Center 

Report No. 13-P-0220 

FROM: Arthur A. Elkins Jr. 

TO:	 David Updike, Director 

National Computer Center 

Office of Technology Operations and Planning, Office of Environmental Information 

This is our report on the subject audit conducted by the Office of Inspector General of the U.S. 

Environmental Protection Agency. This report contains findings that describe the problems the OIG has 

identified and corrective actions the OIG recommends. This audit was conducted in response to an OIG 

hotline complaint. This report provides the summary of our audit related to the allegations made in the 

complaint. 

The OIG received a hotline complaint alleging that the EPA may have committed improprieties in the 

bidding process for EPA network security hardware. Specifically, the allegations claimed that: 

	 The EPA’s National Computer Center did not provide a fair opportunity to all vendors in the 

recent request for proposal for the acquisition of information technology equipment. In 

particular, the request for proposal was written in a manner that only allowed for one specific 

vendor to make a bid proposal. 

	 EPA contractor personnel, tasked with testing the equipment during the market research phase of 

the pre-award activity, disclosed misleading information to a vendor regarding the outcome of 

the selection process. 

We conducted our audit from August 2012 to April 2013 at the EPA’s NCC in Research Triangle Park, 

North Carolina. We performed this audit in accordance with generally accepted government auditing 

standards. Those standards require that we plan and perform the audit to obtain sufficient and 

appropriate evidence to provide a reasonable basis for our findings and conclusions based on the audit 

13-P-0220 1 
 

 

 

objectives. We believe the evidence obtained provides a reasonable basis for our recommendations and 

conclusions. 

As part of our analysis, the OIG reviewed relevant EPA procedures and federal regulations to obtain an 

understanding of guidelines and rules related to pre-award activities for multiple award contracts. We 

also reviewed contract files and other documents and communications related to the acquisition of the 

information technology equipment, as well as pre-award activity documentation. Further, we conducted 

interviews with the following individuals to determine whether the EPA has followed agency policies 

and procedures related to pre-award activities for multiple award contracts: 

	 The complainant, who provided details of the OIG hotline complaint. 

	 EPA contractor personnel who were tasked with testing the equipment during the market 

research phase of the pre-award activity. 

 EPA personnel from the Office of Administration and Resources Management’s Office of 

Acquisition Management, responsible for managing the acquisitions and maintaining contract files 

related to the acquisitions. 

	 EPA personnel from the NCC responsible for initiating the acquisition of the information 

technology equipment. 

We found no evidence to support allegations made in the complaint. However, we determined that the 

EPA could improve communications with vendors during pre-award activities. During our review of 

contract documentation, we identified email communications between the EPA and the vendor who had 

subsequently filed the hotline complaint, attempting to clarify the vendor’s interpretation of acquisition 

procedures and regulations. We recognized instances where there were opportunities for improvement in 

the communication. Office of Management and Budget Circular A-123, Management’s Responsibility 

for Internal Control, states “Information should be communicated to relevant personnel at all levels 

within an organization. The information should be relevant, reliable, and timely. It is also crucial that an 

agency communicate with outside organizations as well, whether providing information or receiving it.” 

There was no evidence that the NCC included any communications or disclosures to the complainant of 

any federal or agency protocols or regulations related to acquisitions during initial pre-award activities. 

Without communicating guidelines and regulations in initial communications with vendors, 

misunderstandings and false expectations related to the acquisition process could arise. 

Recommendations and Agency Corrective Actions 

We recommend that the Director, National Computer Center: 

1.	 Develop disclosure language outlining communication protocols between the agency and 

vendors to include all written communications with vendors during pre-award activities. 

2.	 Distribute a memorandum to managers emphasizing the importance of implementing protocols 

developed in response to recommendation 1. 

The agency agreed with our recommendations and developed a communication protocol and guidelines 

and communicated those to all NCC staff. 

13-P-0220 2 
 

 

The agency’s response to our discussion draft report included proposed corrective actions and 

completion dates. The agency provided us with documentation that the recommendations have been 

implemented. Our analysis confirmed the agency completed the corrective actions on March 14, 2013. 

We have no objections to the further release of this report to the public. We will post this report to our 

website at http://www.epa.gov/oig. 

If anyone has any questions regarding this report, please contact Melissa Heist, assistant inspector 

general for audit, at (202) 566-0899 or heist.melissa@epa.gov; or Rudolph M. Brevard, product line 

director, at (202) 566-0893 or brevard.rudy@epa.gov. 

13-P-0220 3 
 

 

 

 

 

 

 

 

 

 

 

Status of Recommendations and 

Potential Monetary Benefits 

RECOMMENDATIONS POTENTIAL MONETARY 

BENEFITS (in $000s) 

Rec. 

No. 

Page 

No. 

Subject Status1 Action Official Completion 

Date 

Claimed 

Amount 

Agreed-To 

Amount 

1 

2 

2 

2 

Develop disclosure language outlining 

communication protocols between agency and 

vendors to include all written communications with 

vendors during pre-award activities. 

Distribute a memorandum to managers 

emphasizing the importance of implementing 

protocols developed in response to 

recommendation 1. 

C 

C 

Director, 

National Computer Center 

Director, 

National Computer Center 

03/14/13 

03/14/13 

O = recommendation is open with agreed-to corrective actions pending 

C = recommendation is closed with all agreed-to actions completed 

U = recommendation is unresolved with resolution efforts in progress 

13-P-0220 4 

1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix A 

Agency Response to Discussion Draft Report 

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

RESEARCH TRIANGLE PARK, NC 27711 

 OFFICE OF
 

ENVIRONMENATAL INFORMATION 

March 19, 2013 

MEMORANDUM 

SUBJECT: Response to Office of Inspector General Discussion Draft No. OMS-FY12-0012, 

“Improved Communications with Vendors Needed for EPA’s Pre-award 

Activities for Multiple Award Contracts at the National Computer Center,” 

dated 2/28/2013 

FROM: David Updike, Director 

 National Computer Center 

Office of Technology Operations and Planning 

THRU: Vaughn Noga, Director 

Office of Technology Operations and Planning 

and Agency Chief Technology Officer 

TO: Rudolph M. Brevard, Director 

 Information Resources Management Audits 

Office of Inspector General 

Thank you for the opportunity to respond to the issues and recommendations in the subject audit 

report. Following is a summary of the Office of Technology Operations and Planning’s (OTOP) 

overall position, along with my position on each of the report recommendations. I have provided 

below high-level corrective actions and estimated completion dates. 

AGENCY’S OVERALL POSITION 

I concur with the recommendations contained in the report. Communications protocol and 

guidelines have been developed and communicated to all National Computer Center (NCC) staff 

with specific emphasis on effective management and oversight of all communications with 

vendors during potential and active procurement solicitation. 

13-P-0220 5 
 

 

 

AGENCY’S RESPONSE TO REPORT RECOMMENDATIONS 

Agreements 

No. Recommendation High Level Intended Corrective 

Action 

Estimated 

Completion 

Date 

1 Develop disclosure language outlining 

communication protocols between 

agency and vendors to include all 

written communications with vendors 

during pre-award activities. 

Develop communication protocol 

and guidelines for communicating 

with vendors during pre-award 

activities. 

3/22/13 

2 Distribute a memorandum to managers 

emphasizing the importance of 

implementing protocols developed in 

response to recommendation 1. 

Distribute memo to all NCC staff 

emphasizing effective management 

and oversight of all 

communications with vendors 

during pre-award activities. 

3/22/13 

CONTACT INFORMATION 

If you have any questions regarding this response, please contact me at 919-541-0780. 

cc: Scott Dockum, OEI Audit Follow-up Coordinator 

 Anne Mangiafico, OTOP Audit Coordinator 

13-P-0220 6 
 

 

Appendix B 

Distribution 

Office of the Administrator 

Director, National Computer Center, Office of Technology Operations and Planning, 

Office of Environmental Information 

Assistant Administrator for Environmental Information and Chief Information Officer 

Assistant Administrator for Administration and Resources Management 

Agency Follow-Up Official (the CFO) 

Agency Follow-Up Coordinator 

General Counsel 

Associate Administrator for Congressional and Intergovernmental Relations 

Associate Administrator for External Affairs and Environmental Education 

Deputy Assistant Administrator for Environmental Information 

Director, Office of Technology Operations and Planning, Office of Environmental Information 

Director, Office of Acquisition Management, Office of Administration and Resources 

Management 

Audit Follow-Up Coordinator, Office of Environmental Information 

Audit Follow-Up Coordinator, Office of Administration and Resources Management 

13-P-0220 7