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Federal Mediation and Conciliation Service

FY2015 Service Contract Inventory Analysis

Background

The Federal Mediation and Conciliation Service (FMCS) is an independent agency of the federal 

government established by Congress in 1947 to help employers and unions avoid costly work stoppages 

and minimize their potentially devastating effects on regional or national commerce. The FMCS, 

headquartered in Washington, D.C., has mediators located in over 60 field offices and ten regional offices 

across the country and is best known for its history of successful and innovative advances in labormanagement collaboration, joint problem-solving and the resolution of major collective bargaining

disputes. In 1996, Congress recognized this record for pioneering dispute resolution techniques and 

highly skilled professional mediators and called upon the FMCS to help other federal, state and local 

agencies minimize costly litigation by resolving disputes arising under their jurisdictions.

Thus, while the FMCS fulfills its statutory obligations by mediating collective bargaining disputes and by 

assisting employers and unions in developing collaborative problem-solving relationships, it also provides 

federal agencies with a wide variety of alternative dispute resolution services. In all aspects of its work, 

the FMCS seeks to minimize the potential for and the impact of work stoppages and to promote improved

labor management relationships and organizational effectiveness.

Special Interest Functions

This memorandum serves as the report for the FMCS analysis of the FY 2015 service contract inventory 

and the use of contractors for special interest functions. When we conducted a review of our inventory, 

two categories represented the majority of dollars spent in FY 2015: Automated Information Systems 

Services (D307) and Personal Service Contracts (R497). The total amount of special interest functions 

are $1,044,807. Funding for Automated Information Systems primarily consisted of the agency redesign 

of the Internet and Intranet and other software purchases to support agency functions. The Personal 

Services received this fiscal year include specialized business support and conference planning.

PSC Special Interest Functions

Number of 

Contracts for 

PSC Total for FY2015

D307 IT AND TELECOM- IT STRATEGY AND ARCHITECTURE 10 $ 815,147.09

R497

SUPPORT- PROFESSIONAL: PERSONAL SERVICES 

CONTRACT 3 $ 229,660.00

Twenty-one (21) service contracts totaling $1,566,857.77 were reviewed by Administrative Office staff. 

FMCS gives special attention as set forth in FAR 37.114, to avoid contracting for functions that are 

closely associated with inherently governmental functions.
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Methodology

FMCS has a small number of service contracts to manage and all contracts were reviewed by 

Administrative staff which includes a Contracting Officer (CO) and a Contracting Officer Representative 

(COR). Throughout the lifecycle of the contract, the assigned COR is responsible for monitoring and 

evaluating performance, ensuring both that the services are completed in accordance with the terms of 

the contract and the performance of service meets government standards.

Findings

FMCS has determined that the service contract employees performing under these contracts are not 

performing any Inherently Governmental Functions, any Functions Closely Associated to Inherently 

Governmental Function, or any Critical Functions.

§ 743(e) Review Responsibilities FMCS review results 

(i) Each contract in the inventory that is a 

personal services contract has been entered 

into, and is being performed, in accordance with 

applicable laws and regulations. 

Personal service contracts are managed by a 

COR and a CO.

(ii) The agency is giving special management 

attention, as set forth in FAR 37.114, to functions 

that are closely associated with inherently 

governmental functions. 

None of the contractors are performing closely 

associated with inherently governmental 

functions. 

(iii) The agency is not using contractor 

employees to perform inherently governmental 

functions. 

Contractors are not performing inherently 

governmental functions. 

(iv) 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. 

Each contract is assigned a certified COR, 

who continuously reviews and monitors 

contractor performance to ensure that mission 

overlap does not occur. 

(v) The agency is not using 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. 

Contractors do perform important functions

but FMCS has concluded that it has sufficient 

internal expertise both to maintain control of 

its operations and to manage the contractors 

that are supporting the federal employees. 

(vi) There are sufficient internal agency 

resources to manage and oversee contracts 

effectively. 

FMCS administrative staff has sufficient 

internal expertise of IT and support services to 

oversee and manage these contracts.

Actions Taken or Planned

Consistent with the findings, FMCS determined no insourcing of work was necessary. FMCS will continue 

to carefully manage and monitor its contracted work in accordance with law, regulation, and policy –

including the new guidance set forth in OFPP Letter 11-01, that addresses which contracts may require 

increased management attention and oversight to ensure that mission creep does not result in 

contractors performing inherently governmental functions and ensure that the agency does not lose 

control of its missions and operations.

During this review, we have not identified contract issues requiring corrective actions. 
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Responsible Officials

Official responsible for the development of agency 

policies, procedures and associated training.

Cynthia Washington

Head of Contracting Activity (HCA)

Supervisor, Administrative Services

Official responsible for ensuring appropriate 

internal management of service contract 

inventories.

Cynthia Washington

Head of Contracting Activity (HCA)

Supervisor, Administrative Services