**Federal Mediation and Conciliation Service**

**FY2014 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 labor-management 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 2014 service contract inventory and the use of contractors for special interest functions.  When we conducted a review of our inventory, only two categories were represented Personal Service Contracts (R497) and Automated Information Systems Services (D307).  This total amount of special interest functions is $494,029.73.  

Seventeen (17) service contracts totaling $1,245,790 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.

**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.

**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. 

**Responsible Officials**

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