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Audit of the U.S. Nuclear Regulatory Commission’s Contract Management of Information Technology Services

Report Information

Date Issued
Report Number
OIG-24-A-09
Report Type
Audit
Description
The NRC could improve its IT services and support through more consistent management with an emphasis on service level agreements (SLAs) and the closeout of IT-related contracts. Consistent with federal regulations and prudent business practices, contract requirements should be clearly defined, and the appropriate performance standards should be developed so the contractors’ performance can be measured. However, the NRC does not consistently use SLAs when awarding IT contracts because the agency has no specific guidance on how or when to use SLAs. As a result, the NRC may be limiting its ability to measure contractor performance and may not receive the services the agency requires or purchases. The NRC is required to close out contracts in an orderly and timely manner. However, the NRC is not always prompt in contract closeouts and in deobligating excess funds. This occurs because the NRC does not always prioritize contract closeouts and does not have a tracking method for contracts in the closeout process. This has led to a surplus of unliquidated obligations that could be put to better use. This report makes two recommendations to improve the NRC's management and closeout of IT contracts.
Joint Report
Yes
Participating OIG
Nuclear Regulatory Commission OIG
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$1100000
View report on Oversight.gov

Recommendations

Develop and implement agency guidance on how and when SLAs should be included in IT contracts.

Agency Response Dated March 7, 2025: Completed. The Office of the Chief Information Officer (OCIO) has developed the attached Service Level Agreement Guidance for IT Contracts. This guidance has been uploaded to the NRC’s Enterprise Acquisition Toolset (NEAT) which provides acquisition guidance and templates for NRC Contracting Officer’s Representatives.<br />
OIG Analysis: The OIG was able to locate and review the Service Level Agreement Guidance for IT Contracts in NEAT. The NRC’s actions meet the intent of this recommendation; therefore, this recommendation is now closed.<br />
<br />
Agency Response: Dated July 30, 2024: Agree. The Office of the Chief Information Officer will develop and implement agency guidance on how and when SLAs should be included in IT contracts. Target Completion Date: November 30, 2024<br />
OIG Analysis: The OIG will close this recommendation after reviewing and confirming the evidence provided by the U.S. Nuclear Regulatory Commission’s (NRC’s) management of the developed and implemented guidance on how and when SLAs should be included in IT contracts. This recommendation remains open and resolved.
https://adamsxt.nrc.gov/navigator/AdamsXT/content/downloadContent.faces?objectS…

Develop and implement a method to prioritize NRC contract closeout, including:a. Updating agency guidance to describe current practices for contract closeout and deobligation;b. Reinforcing contract closeout policy to the CORs and acquisition personnel through formal communications and refresher training on the closeout process; and,c. Creating a procedure to track closeout requisitions, from submission to completion, that results in the timely completion of closeouts by the AMD. The tracking information should include, among other things, contract type, date the CO received evidence of physical completion, funding allocation, and, where the expired contract is in the contract management process.

Agency Response Dated March 7, 2025: Completed. The Office of Administration (ADM), Acquisition Management Division (AMD), completed the update of Management Directive 11.1, “NRC Acquisition of Supplies and Services,” which describes current practices for contract closeout and deobligation. In addition, ADM/AMD provided multiple training sessions on the contract closeout process for agency Contracting Officer’s Representatives (CORs). ADM/AMD created the Closeout Summary Dashboard on NRC Enterprise Acquisition Tool (NEAT), which provides a way for CORs, Funds Certifying Officials and AMD staff to track closeout requisitions including contract type, the date the requisition was submitted, funding allocations and if the contract has been closed or not. Multiple training sessions on this tool were provided to all the stakeholders who may use the dashboard, and a recording of one of these sessions has been posted on NEAT for reference.<br />
OIG Analysis: The OIG was able to locate and review the updated MD 11.1, the Closeout Process Trainings from March and November 2024, and the Closeout Dashboard Training provided to staff in November 2024. The OIG also reviewed the Closeout Summary Dashboard in NEAT. The NRC’s actions meet the intent of this recommendation; therefore, this<br />
recommendation is now closed. <br />
<br />
Agency Response: Dated July 30, 2024: Agree. The Office of Administration will develop and implement a method to prioritize NRC closeout, including a) Updating agency guidance to describe current practices for contract closeout and deobligation; b) Reinforcing contract closeout policy to the CORs and acquisition personnel through formal communications and refresher training on the closeout process; and, c) Creating a procedure to track closeout requisitions, from submission to completion, that results in the timely completion of closeouts by the AMD.<br />
The tracking information should include, among other things, contract type, date the CO received evidence of physical completion, funding allocation, and, where the expired contract is in the contract management process. Target Completion Date: February 1, 2025<br />
OIG Analysis: The OIG will close this recommendation after reviewing and confirming the evidence provided by the NRC’s management<br />
of the developed and implemented method to prioritize NRC closeout. This recommendation remains open and resolved.
https://adamsxt.nrc.gov/navigator/AdamsXT/content/downloadContent.faces?objectS…