National Security Agency (NSA) Inspector General Robert P. Storch announced today the release of an unclassified version of the Office of the Inspector General’s (OIG) Audit
of the Agency’s Facilities and Logistics Service Contract. The OIG identified concerns with respect to controls and oversight of the more than $400 million contract.
Specifically, the OIG found that the NSA did not have sufficient controls in place to ensure proper award and administration of the FY2016 contract, which was issued in 2015 for a five-year period of performance. The Agency did not properly prepare for the contract award and did not document the contract file sufficiently to support the sole-source award to an Alaska Native Corporation and participant in the Small Business Administration (SBA) 8(a) program.
In addition, the NSA modified the contract by adding over $35 million in property services that were not a part of the original contract requirements. Moreover, the OIG found the Agency did not have sufficient guidance and procedures in place to manage hybrid contract funding; had not evaluated the contractor’s performance; and did not have the metrics necessary to measure such performance.
As a result of these findings, the OIG concluded that the NSA may have improperly awarded the contract; caused an out-of-scope modification; and could exceed the contract funding requirements before the end of the period of performance. The OIG made 13 recommendations to assist the NSA in addressing the issues identified in the report. In response and subsequent to the report’s issuance, the Agency provided planned actions that, if completed, will meet the intent of the recommendations.