Essay Example on Contract File Management: Uncovering Significant Vulnerabilities

What Factors Contribute to Significant Vulnerabilities in the Management of Contract File Documentation?

In recent audits, investigations, and inspections, the Office of Inspector General has identified certain factors contributing to significant vulnerabilities in the management of contract file documentation. The Office of Inspector General over the past six years has designated the Department of State contracts with a total of more than $6 billion in which contract files could not be located or were incomplete. It demonstrated a lack of internal control and creates financial risks due to failure to maintain contract files. The Federal Acquisition Regulation entails that the contract files should be in organized filling systems and adequately handled, stored, and disposed of, which is crucial. It is the work of the Department of State's policy to ensure that all contracts, regardless of their value, be documented appropriately to provide a complete record of the solicitation, award process and evaluation, pre-solicitation activities; and, administration of contracts through closeout.

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Explain Financial Losses in this Situation?

The vulnerabilities expose the Department to substantial financial losses. Recently, the Office of Inspector General audit of a closeout process for contracts supporting the U.S. mission in Iraq revealed that the contracting officials did not provide 33 of 115 contract files. The missing 33 contract files total $2.1 billion. Also, forty-eight of the 82 contract files received did not contain the required documentation by FAR 4.8. The value of incomplete 48 contract files totaled to $2.1 billion. Eight of the contracts in an ongoing OIG audit of the Bureau of African Affairs contracts revealed that contracting officer representatives were unable to provide complete contract administration files. The value of the contracts totalled $ 34.8 million. Over six years, the audit work uncovered contract file management deficiencies in Department contracts with a total value of $ 6 billion.

What Safeguards can be instituted to Prevent Significant Vulnerabilities in the Management of Contract File Documentation and Financial Losses?

The Department should take action to correct inadequate enforcement of the Federal Acquisition Regulation provisions and also its procedures that enhance the maintenance of the files. The Office of Inspector General is making the following recommendations: OIG recommends A/OPE to deliver outcomes of its reviews set forth to the appropriate offices and bureaus. It will ensure that contracting officers and their representatives, as well as supervisors and other supporting personnel, are held accountable. They are also required to maintain and update contract files per Department and Federal policies. Also, the Office of Inspector General recommends that A/OPE specialists and contracting officers and their supporting personnel, through the Under Secretary for Management, have adequate resources to maintain contract files. The files should be kept under relevant policies and regulations. Finally, OIG endorses that A/OPE implement and develop a process to randomly sample and confirm the completeness of contract files, which includes contract files maintained by representatives, contracting officers, and other supporting personnel.

What Organization can be Or Should Be the Best "Watchdog" in this situation?

The A/OPE will be the watchdog for promoting better maintenance of the contract files. A/OPE will always ensure that the contract files are complete; it will also ensure that contracting personnel are held accountable for adequate maintaining contract files. Finally, to ensure that people are held liable, A/OPE would appreciate from the Office of Inspector General a list of responsibilities for the contract file. Public budgeting is a plan for financing a government or an enterprise during a specified period. It is prepared and surrendered by a responsible executive to a representative firm whose authorization and approval are essential before the plan is executed. Governments are overseen mainly by their budgets, where revenue and expenditures controlled through the budgetary process; hence reasonable and adequate care should be taken into consideration when taking care of the Contract filesiu