Merit Systems Protection Board

Financial and Administrative 

Management

Fiscal Year 2019 Service Contract Inventory Analysis

February 2021
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Background

The Merit Systems Protection Board (MSPB) is an independent, quasi-judicial 

agency in the Executive branch that serves as the guardian of Federal merit 

systems. The MSPB was established by Reorganization Plan No. 2 of 1978,

which was codified by the Civil Service Reform Act of 1978 (CSRA), Public 

Law No. 95-454. The CSRA, which became effective January 11, 1979, replaced 

the Civil Service Commission with three new independent agencies: Office of 

Personnel Management (OPM), which manages the Federal work force; Federal 

Labor Relations Authority (FLRA), which oversees Federal labor-management 

relations; and the MSPB. 

The mission of the MSPB is to "Protect the Merit System Principles and promote 

an effective Federal workforce free of Prohibited Personnel Practices." MSPB 

carries out its statutory responsibilities and authorities primarily by adjudicating

individual employee appeals and by conducting merit systems studies. In 

addition, MSPB reviews the significant actions of the OPM to assess the degree to

which those actions may affect merit. 

Introduction

As required by Division C, Section 743 of the Fiscal Year (FY) 2010 

Consolidated Appropriations Act (P.L. 111-117) and further guidance from the 

OMB – Office of Federal Procurement Policy (OFPP) Memorandum to Chief 

Acquisition Officers (CAO) and Senior Procurement Executives (SPE), entitled 

“Service Contract Inventories” - dated November 5, 2010, the U.S. Merit Systems 

Protection Board, Office of Financial and Administrative Management assessed 

MSPB’s service contract inventory and coordinated the internal analysis. The 

results are summarized in this report. 

SPECIAL INTEREST FUNCTIONS

PSC PRODUCT OR SERVICE DESCRIPTION

D302 AUTOMATIC DATA PROCESSING SYSTEMS 

DEVELOPMENT

D307 AUTOMATED INFORMATION SYSTEM DESIGN AND 

INTEGRATION SERVICES

D310 AUTOMATIC DATA PROCESSING BACKUP & SECURITY 

SERVICES

D314 AUTOMATIC DATA PROCESSING ACQUISITION SUPPORT 

SERVICES
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R408 PROGRAM MANAGEMENT/SUPPORT SERVICES

R413 SPECIFICATIONS DEVELOPMENT SERVICE

R414 SYSTEMS ENGINEERING SERVICES

R421 TECHNICAL ASSISTANCE

R423 INTELLIGENCE SERVICES

R425 ENGINEERING AND TECHNICAL SERVICES

R497 PERSONAL SERVICES CONTRACTS

R707 MANAGEMENT SERVICES/CONTRACT & PROCUREMENT 

SUPPORT

MSPB TOP TEN PRODUCT SERVICE CODES

PSC PRODUCT OF SERVICE DESCRIPTION

D301 IT AND TELECOM- FACILITY OPERATION AND 

MAINTENANCE

D304 IT AND TELECOM- TELECOMMUNICATIONS AND 

TRANSMISSION

D318 IT AND TELECOM- INTEGRATED 

HARDWARE/SOFTWARE/SERVICES SOLUTIONS, 

PREDOMINANTLY SERVICES

D319 IT AND TELECOM- ANNUAL SOFTWARE MAINTENANCE 

SERVICE PLANS

J070 MAINTENANCE REPAIR REBUILD OF EQUIPMENT

R499 SUPPORT- PROFESSIONAL: OTHER

R606 SUPPORT- ADMINISTRATIVE: COURT REPORTING

U009 EDUCATION/TRAINING - GENERAL

V229 TRANSPORT/TRAVEL/RELOCATIONTRAVEL/LODGING/RECRUIT: PURCH OF TRANSIT/PUBLIC 

TRANSPORT FARE MEDIA

W074 LEASE OR RENTAL OF EQUIPMENT- OFFICE MACHINES, 

TEXT PROCESSING SYSTEMS, AND VISIBLE RECORD 

EQUIPMENT

Scope 

In compliance with the Consolidated Appropriations Act, 2010, MSPB 

completed a thorough analysis of its FY 2019 inventory to:

• gauge whether contracts for services are being used appropriately to

support the MSPB mission;

• determine the effectiveness of MSPB’s use of support contractors; and
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• identify future improvements to our service-related acquisition practices.

MSPB is submitting this report, in accordance with OMB’s guidance and the GAO 

Report #GAO-12-1007, to present its analysis, methodologies, significant 

findings, accomplishments, and future actions required for continued 

improvements.

Analysis of FY 2019 Service Contract Inventories

MSPB continues to strengthen its financial stewardship throughout the acquisition 

life-cycle. The MSPB Procurement office completed the analysis of their 2019

service contract inventory assuring service contracts supported valid program 

requirements along with considering the balance between federal employees and 

service contractors. 

The MSPB recognizes that the ongoing critical success of the services that the 

agency acquires to support its missions require definitive processes to execute 

services acquisitions and ensure governance and oversight. The ongoing review 

processes create opportunities to engage customers early on in the acquisition

planning process which enables them to develop effective, results-oriented 

strategies that meet the need with solutions and incentives for efficient innovation 

throughout the acquisition process. 

The MSPB conducted the inventory analysis in accordance with section 743(e) to 

ensure that:

• no personal service contracts have been awarded;

• special management attention is given, as set forth in Federal Acquisition

Regulation (FAR) 37.114, to functions that are closely associated with

inherently governmental functions;

• contractor employees are not utilized to perform inherently governmental

functions;

• specific safeguards and monitoring systems are in place to ensure that work

being performed by contractors has not changed or expanded during

performance to become an inherently governmental function;
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• contractor employees are not utilized to perform critical functions that

could affect the ability of the agency to maintain control of its mission and

operations; and

• there are sufficient internal agency resources to manage and oversee

contracts effectively.

Methodology 

The inventory was acquired from a report compiled from the Federal Procurement 

Data System (FPDS). The report was created using the parameters established in 

P.L. 111-117.

The inventory review methods included:

• interview program managers, budget managers, contracting officer

representatives, and contracting officers. The interview questions

addressed: whether the services were necessary; whether inherently

governmental functions were performed; were functions closely related to

inherently government functions and if so what oversight methods were

used; what procedures were used for inspecting and assessing performance;

and how effective were the services performed;

• random sampling of service contracts;

• validate inherently governmental – performance by contractor or

government;

• assess need driven by mission;

• identify opportunities to reduce duplication; and

• identify challenges and opportunities.

Findings

There were no special interest functions obligated by MSPB in fiscal year 2019. 

The service contracts reviewed were selected from the price range of $25,000 or 

above, as required by P.L. 111-117. The MSPB has 138 service contracts with 

only 11 over the $25,000 threshold. MSPB only had two contracts over the 
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$25,000 threshold that utilized support contractors. The review of selected 

contracts is as follows:

Service Code 

Detail Level

Service Code 

Description

% of 

Total 

Obligated 

Dollars

Number of 

Contracts

Obligated 

Amount

D3 Information 

Technology and 

Telecommunications

13 25 $525,062.85

J0 Maintenance/Repair 3 8 $136,127.57

R4 Support -

Professional

4 7 $58,941.88

R6 Support -

Administrative

9 72 $364,808.97

Total 29 112 $1,804,941.27

Of the contracts MSPB reviewed, all were deemed necessary and in direct support 

of the MSPB mission. MSPB Procurement staff did not identify any contracts with 

inherently governmental functions or personal services. MSPB contracts met 

performance expectations and contractual requirements. 

MSPB does not use 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.

Conclusion

In the reviews accomplished, MSPB has determined that contractors are not 

performing inherently governmental functions, safeguards and monitoring systems 

are in place to ensure that work being performed does not become inherently 

governmental, contractors are not performing critical functions that could affect 

the agency’s ability to maintain control of its mission and operations and there are 

adequate resources to effectively manage contracts.

After reviewing the Services Contract Inventory, MSPB has identified no

significant weaknesses or challenges to its contracting process. Therefore, no 

corrective actions have been needed and no plans to address future contracts are 

necessary. Similarly, no deficiencies were uncovered in the previous fiscal year 

inventory. 
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Responsible Officials

Kevin Nash, Director, Financial and Administrative Management - is accountable 

for the development of agency policies, procedures, and training associated with 

OFPP Policy Letter 11-01 addressing the performance of inherently governmental 

and critical functions. Mr. Nash is also responsible for ensuring appropriate 

internal management attention is given to the development and analysis of service 

contract inventories. 

FY 2020 Planned Analysis 

In accordance with the Service Contract Inventory Checklist of Submissions, the 

U.S. Merit Systems Protection Board is submitting the identified Planned Analysis

for FY 2020. 

The functions are:

• D304 Telecommunications and Transmissions Services

• D319 Annual Software and Maintenance Service Plans

• R606 Support - Administrative: Court Report

These are the codes that are of highest interest for the agency to analyze for FY 

2020.