Interagency Contracting: Franchise Funds Provide Convenience, But Value to DOD Is Not Demonstrated

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DIANE Publishing, 2005 - 51 pages
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The Dept. of Defense (DoD) is the largest user of other federal agencies' contracting services. The availability of these contracting services has enabled DoD & other departments to save time by paying other agencies to award & administer contracts for goods & services on their behalf. For example, DoD uses franchise funds (FF), which are government-run, fee-for-service organizations that provide a portfolio of services, including contracting services. This report assessed whether FF ensured fair & reasonable prices for goods & services, whether DoD analyzed purchasing alternatives, & whether DoD & FF ensured value by defining contract outcomes & overseeing contractor performance. Charts & tables.
 

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Page 33 - We will also make copies available to others upon request. In addition, the report will be available at no charge on GAO's Web site at http://www.gao.gov. If you or your staff have any questions about this report, please contact me at (202) 512-7215 or robertsonr@gao.gov.
Page 39 - Cessation of Activity The organization should specify that prior to curtailing or eliminating a service, the provider will give notice within a reasonable and mutually agreed time frame so the customer may obtain services elsewhere. Notice will also be given within a reasonable and mutually agreeable time frame to the provider when the customer elects to obtain services elsewhere.
Page 31 - Agency Comments and Our Evaluation We provided a draft of this report to the Secretary of Defense for review and comment.
Page 40 - ... by the head of the agency determines that the advisory and assistance services are incidental and not a significant component of the contract. [65 FR 24318, Apr. 25. 2000] 16.505 Ordering. (a) General. (1) The contracting officer does not synopsize orders under indefinite-delivery contracts. (2) Individual orders shall clearly describe all services to be performed or supplies to be delivered so the full cost or price for the performance of the work can be established when the order is placed....
Page 23 - Performance-based contracting means structuring all aspects of an acquisition around the purpose of the work to be performed as opposed to the manner by which the work is to be performed or broad or imprecise statements of work.
Page 44 - Comments from the Department of the Treasury DEPARTMENT OF THE TREASURY WASHINGTON, DC 2O22O April 15, 2002 VIA FACSIMILE: (202) 512-9088 Mr.
Page 7 - ... and assistance services are necessarily incident to, and not a significant component of, the contract. [48 FR 42219. Sept. 19. 1983. as amended at 56 FR 15150, Apr. 15. 1991; 60 FR 49725, Sept. 26, 1995] 16.504 Indefinite-quantity contracts. (a) Description. An indefinite-quantity contract provides for an indefinite quantity, within stated limits, of supplies or services during a fixed period. The Government places orders for individual requirements. Quantity limits may be stated as number of...
Page 39 - ... eliminating a service, the provider will give notice within a reasonable and mutually agreed time frame so the customer may obtain services elsewhere. Notice will also be given within a reasonable and mutually agreeable time frame to the provider when the customer elects to obtain services elsewhere. 9. Organization The organization would have a clearly defined organizational structure including readily identifiable delineation of responsibilities and functions and separately identifiable units...
Page 39 - Voluntary Exit Customers should be able to "exit" and go elsewhere for services after appropriate notification to the service provider and be permitted to choose other providers to obtain needed services. 3. Self-Sustaining/ Full Cost Recovery The operation should be self-sustaining. Fees will be established to recover the "full costs," as defined by standards issued in accordance with FASAB [the Federal Accounting Standards Advisory Board].
Page 31 - Justice, the Department of the Interior, and the Office of Management and Budget...

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