Panel on Contracting Integrity

Purpose

Section 813 of the John Warner National Defense Authorization Act (NDAA) for Fiscal Year 2007, Public Law 109-364, directed the Department of Defense (DoD) to establish a Panel on Contracting Integrity consisting of senior leaders representing a cross-section of the Department. The Panel’s purpose is twofold: review progress made by DoD to eliminate areas of vulnerability of the defense contracting system that allow fraud, waste, and abuse to occur, and recommend changes in law, regulations, and policy to eliminate the areas of vulnerability. It directed the Panel to prepare annual reports containing a summary of the panel’s findings and recommendations—reports for 2007, 2008, 2009, and 2010 are located under "Related Documents."

2012 Panel Structure and Actions

1. Current Structure of Contracting Integrity

Examine GAO and DoDIG audit findings resulting from reviews completed across the Department and determine whether policy and/or training would be necessary to eliminate issues identified in these audits.

2. Sustained Senior Leadership

Study feasibility of developing a standardized CPARS like questionnaire.

3. Capable Contracting Workforce

No planned actions; support any Panel effort associated with training.

4. Adequate Pricing

Develop proposal for FAR/DFARS case to modify FAR Part 44 to clarify requirements of prime contractor’s subcontract management. Develop guidance on ACO handling of contractor submitted updates to their forward pricing rate proposal.

5. Appropriate Contracting Approaches & Techniques

Assess mid-level refresher type training needs and recommend potential training topics/areas.

6. Sufficient Contract Surveillance

Develop guidance to institutionalize “Combating Trafficking in Persons” in Quality Assurance Surveillance Plans. Review and recommend changes to regulations to improve contract surveillance. Publish DoD COR Handbook.

7. Contracting Integrity in a Combat/Contingent Environment

Implement Standardized Automated Joint After-Action Reports. Publish an updated Contingency COR Handbook in 2012. Lead a Worldwide Contingency Contracting Conference in 2012.

8. Procurement Fraud Indicators

Review the six actions previously performed by Subcommittee 8 and determine if any of the actions need to be updated. If updating is needed, the Subcommittee will update the two actions deemed in most need of updating.

9. Contractor Employee Conflicts of Interest

Ensure that all Critical Acquisition Positions are properly identified as required to file an annual financial disclosure (OGE 450 or SF 278) and receive annual standards of conduct training.

10. Recommendations for Change

Establish a Department of Defense-wide values-based ethics program. Monitor legislative proposal to amend the Program Fraud Civil Remedies Act of 1986 (“PFCRA”) in the NDAA for FY 13 legislative bill congressional marks. Draft FY14 legislative proposal to keep fraud recoveries fiscal law exemption. In conjunction with DAU, conduct webcast covering coordinating procurement fraud remedies. Evaluate sufficiency of current procurement fraud remedies and practices.

11. Evaluation of Contractor Business Systems

Evaluation of Contractor Business Systems; actions complete. SUBCOMMITTEE DEACTIVATED. Assess the desirability and feasibility of implementing the National Academy of Public Administration (NAPA) recommendations regarding the DoD Review of Post-Employment Restrictions and Effective Practices Review. NEW SUBCOMMITTEE – DHRA Lead.

12. Peer Reviews

Deactivated; completed FY11 actions.

13. Opportunities for More Effective Competition

Complete all efforts associated with receiving only one offer in competitive solicitations. Address small business participation in past performance.

Panel on Contracting Integrity Accomplishments in 2010:

• Issued a memorandum to DoD senior leadership to address acquisition requirements development training in their organizations
• Issued a memorandum to DoD senior leadership communicating the Department’s commitment to promoting an ethical culture in the workplace and encouraging its personnel to lead by example, provide ethical decision making, and do the right thing
• Issued a memorandum to DoD senior leadership outlining a DoD standard for certifying Contracting Officer’s Representatives for Service Acquisitions
• Developed recommendations on a standardized DoD Contracting Officer Warranting Program
• Developed recommendations on “back to basics” on-the-job training (OJT) for new contracting workforce members
• Developed recommendations designed to provide better tools for contracting officers to use in developing/determining fair and reasonable contract prices
• Issued a memorandum to DoD survey participants on Values-based Ethics
• Issued a memorandum to DoD leadership regarding focus group sessions on Values-based Ethics