FedSource has problems with DOD task orders, IG says

The Treasury Department’s acquisition service, FedSource, made mistakes as it helped the Defense Department make purchases in fiscal 2006, but none of the errors were significant enough for DOD to end the relationship, a recent report from DOD’s inspector general has found.

The larger problem was that FedSource is taking on too many complex task orders, according to the Feb. 11 report.

In the report, the IG found problems with interagency agreements, market research and proper contract oversight when that office audited 29 task orders valued at $11.2 million. All the orders had inadequate or no interagency agreements, had no proof that officials conducted any market research and had poor surveillance plans, the IG found. 

The IG said DOD is primarily responsible for laying out the interagency agreement and conducting market research. Both DOD and FedSource should watch contractors to ensure they meet a contract’s requirements, the report stated.

The IG also found that four orders totaling $2.3 million were awarded with no competition and one $324,000 order was improperly funded, which could result in an Antideficiency Act violation.

FedSource, which awards and administers task orders for customer agencies, should improve how it operates and update its business systems to manage the size and complexity of the business it is handling, the IG said. FedSource processed 26,344 task orders and contract modifications in fiscal 2006, which totaled $404.1 million. The service also received 4,533 purchase requests from DOD valued at $207.3 million, the report states.

The problems occurred because DOD and FedSource didn’t coordinate planning and oversight responsibilities, the IG said.

Although FedSource has improved, problems with interagency agreements, market research and surveillance need attention, the IG said.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

Featured

  • Cybersecurity

    DHS floats 'collective defense' model for cybersecurity

    Homeland Security Secretary Kirstjen Nielsen wants her department to have a more direct role in defending the private sector and critical infrastructure entities from cyberthreats.

  • Defense
    Defense Secretary James Mattis testifies at an April 12 hearing of the House Armed Services Committee.

    Mattis: Cloud deal not tailored for Amazon

    On Capitol Hill, Defense Secretary Jim Mattis sought to quell "rumors" that the Pentagon's planned single-award cloud acquisition was designed with Amazon Web Services in mind.

  • Census
    shutterstock image

    2020 Census to include citizenship question

    The Department of Commerce is breaking with recent practice and restoring a question about respondent citizenship last used in 1950, despite being urged not to by former Census directors and outside experts.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.