Merit Systems Protection Board

Financial and Administrative 

Management

Fiscal Year 2015 Service Contract Inventory Analysis

February 2017
2

Background

The Merit Systems Protection Board is an independent, quasi-judicial agency in 

the Executive branch that serves as the guardian of Federal merit systems. The 

Board 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 Board.

The mission of the Merit Systems Protection Board (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 Office of 

Personnel Management (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 Office of 

Management and Budget (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 (MSPB), Office of Financial and 

Administrative Management assessed MSPB’s service contract inventory and 

coordinated the internal analysis. The results are summarized in this report.

Scope 

In compliance with the FY 2010 Consolidated Appropriations Act, MSPB 

completed a thorough analysis of its FY2015 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
3

 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 2015 Service Contract Inventories

MSPB continues to strengthen its financial stewardship throughout the acquisition 

life-cycle. The MSPB Procurement office completed the analysis of their 2015

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;
4

 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:

 surveying program managers, budget managers, contracting officer

representatives, and contracting officers;

 random sampling of service contracts;

 validating contractor performance;

 assessing agency needs.

Findings

There were no special interest functions obligated by MSPB in Fiscal Year 2015. 

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 only a limited number of 

service contracts over the $25,000 threshold. MSPB only had one contract over the 

$25,000 threshold that utilized support contractors.

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.
5

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. 

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.