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FEDERAL MARITIME COMMISSION

SERVICE CONTRACT INVENTORY ANALYSIS

Fiscal Year 2018

Scope

As prescribed in the notice, OMB advised that agencies give priority consideration to 

Special Interest Functions (SIFs), which are those that require increased management 

attention due to heightened risk of workforce imbalance. The following PSCs are being 

reported to OMB as an FMC SIF:

PSC PSC Description

Number of 

Contracts 

FY 2018 for 

PSC

Total Dollars 

Obligated 

FY 2018 for 

PSC

Total Base and 

All Options 

Value for PSC

D313 IT and Telecom 

Computer Aided 

Design/Computer 

Manufacturing 

1 $1,442,050.00 $6,430,155

PSC Description

IT and Telecom - IT and Telecom Computer Aided Design/Computer 

Manufacturing

Methodology

These PSCs were selected because they may be closely related to the work of government 

employees and have the potential for inherently governmental work to be performed by 

contractors. 

Agency Analysis of Contracts

The FMC has issued no contracts for personal services, and the agency is giving attention, as set 

forth in FAR 37.114, to avoid contracting for functions closely associated with inherently 

governmental functions. Contracts in the SIF areas represented $1,548,490.84, of the total 

contract obligations of the FMC for FY 2017. The analysis will help the FMC to manage these 

services for performance and cost efficiencies. The FMC will evaluate the extent to which 

contract awards within this function leverage existing Federal or Departmental enterprise 
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contract vehicles or present future opportunities for strategic sourcing. The FMC will 

specifically assess effective balancing of contracted and government resources for these efforts. 

Contracted Services and Agency Objectives

The mission of the FMC is “to foster a fair, efficient and reliable international ocean 

transportation system and to protect the public from unfair and deceptive practices.”

The FMC ensures competitive and efficient ocean transportation services for the shipping public 

by:

• Reviewing and monitoring agreements among ocean common carriers and marine 

terminal operators (MTOs) serving the U.S. foreign oceanborne trades to ensure that they 

do not cause substantial increases in transportation costs or decreases in transportation 

services;

• Maintaining and reviewing confidentially filed service contracts and Non-VesselOperating Common Carrier (NVOCC) Service Arrangements to guard against 

detrimental effects to shipping;

• Providing a forum for exporters, importers, and other members of the shipping public to 

obtain relief from ocean shipping practices or disputes that impede the flow of 

commerce;

• Ensuring common carriers’ tariff rates and charges are published in private, automated 

tariff systems and electronically available;

• Monitoring rates, charges, and rules of government-owned or –controlled carriers to 

ensure they are just and reasonable; and

• Taking action to address unfavorable conditions caused by foreign government or 

business practices in U.S. foreign shipping trades.

The FMC protects the public from financial harm, and contributes to the integrity and security of 

the U.S. supply chain and transportation system by:

• Helping resolve disputes involving shipment of cargo, personal or household goods, or 

disputes between cruise vessel operators and passengers;

• Investigating and ruling on complaints regarding rates, charges, classifications, and 

practices of common carriers, MTOs, and Ocean Transportation Intermediaries (OTIs), 

that violate the Shipping Act;

• Licensing shipping companies with appropriate character and adequate financial 

responsibility;

• Identifying and holding regulated entities accountable for mislabeling cargo shipped to or 

from the United States; and
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• Ensuring that cruise lines maintain financial responsibility to pay claims for personal 

injury or death, and to reimburse passengers when their cruise fails to sail.

The FMC also recognizes the critical importance of providing effective, performance-oriented 

management. The FMC ensures the protection of resources allocated to its mission through 

strategic plans and measurement mechanisms for human capital, information technology, and 

financial management at the Commission.

The contracts on this Service Contract Inventory (SCI) was put into place in order to aid in the 

fulfillment of the FMC’s Strategic Goals and Strategies. If a contract is identified as Critical 

(CT) on the SCI, it is directly related to the mission and strategic goals of the FMC. 

Agency Findings

Three contracts for services under product service codes D304, D313 and R704, totaled 

$1,548,490.84, in FY 2017 obligations. 

A. The FMC implemented OFPP Policy Letter 11-01, Performance of Inherently 

Governmental and Critical Functions. In accordance with the Policy Letter, an 

Agency Designee has been appointed to conduct reviews of all actions over the 

simplified acquisition threshold. The designee is the Contracting Officer, and all 

FY17 actions to date have been reviewed in accordance with the guidance.

B. The FMC has placed emphasis on awarding contracts to underrepresented 

socioeconomic categories where feasible, and will continue to do so. Also, 

contractors will not be utilized to perform inherently governmental functions, but to 

meet agency needs for skills and services not available through current staff. 

C. The following characteristics were noted for the contracts reviewed:

i. The agency is not using contractor employees to perform inherently governmental 

functions as outlined in FAR Subpart 7.5. The FMC is giving special management 

attention, as set forth in FAR 37.114, to functions that are closely associated with 

inherently governmental functions. This review assessed the extent to which functions 

might be closely associated with inherently governmental functions, and identified 

internal controls, including governance and internal reviews, to ensure functions that 

are closely associated with inherently governmental functions are given special 

attention. Although the functions are not inherently governmental, contractors’ 

employees may work in a situation that permits or might permit access to confidential 

business information or other sensitive information, or may provide support for human 

resources management. The FMC depends on well-trained Contracting Officer 

Representatives (CORs) to ensure that work performed by contractors does not expand 

into inherently governmental functions during the performance of a contract. 

ii. The agency has specific safeguards and monitoring systems in place to ensure that 

work being performed by contractors has not changed or expanded during 

performance to become an inherently governmental function. The FMC has utilized 
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acquisition personnel to provide training to improve understanding of the necessary 

oversight to ensure that work being performed by contractors has not changed or 

expanded during performance to become an inherently governmental function.

iii. The agency is not using contractor employees to perform critical functions in a manner 

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

operations. The contract was assessed based on the complexity of the functions, 

impact of stop-work, and the risk of the functions. Based on this assessment, it is our 

determination that the FMC used contractor support to enhance the agency’s mission, 

and did not use contractor employees to perform critical functions which would 

adversely impact the agency’s ability to maintain control of its mission. 

iv. Based on the number of contractors compared to the number of Federal workers, and 

Federal workers providing oversight and management of service contracts, the FMC 

has sufficient internal resources to manage and oversee contracts effectively. The 

availability of appropriately trained and experienced CORs and contract staff was also 

assessed as sufficient. 

v. The Contracting Officer identified no contract as being poorly performed because of 

excessive costs or inferior quality.

Responsible Officials

The senior agency management official accountable for the development of procurement 

policies, procedures, and training associated with OFPP Policy Letter 11-01 addressing the 

performance of inherently governmental and critical functions and for ensuring appropriate 

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

inventories is Katona Bryan-Wade, Director of the Office of Management Services.

Plan for Analyzing the FY 2018 Data

While agencies are encouraged to consider reviewing PSCs R499, R699 and R799, the 

Federal Maritime Commission did not award any contracts meeting the specific dollar 

thresholds in FY2018.

The FY 2018 planned analysis will focus on the below special interest functions.

PSC PSC Description

D313 IT and Telecom - IT and Telecom Computer Aided Design/Computer 

Manufacturing
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The above product service code was selected to ensure compliance with FAR 4.1703. 

FMC will analyze the above to ensure proper reporting requirements have been 

completed by contractors, and ensure inherently governmental functions are not being 

performed.

Katona Bryan-Wade February 19, 2019

Director, Office of Management Services