The audit report, “NASA’s Proposal Evaluation Process,” (IG-02-030)
has been posted to the NASA Office of Inspector General Web site at:
http://www.hq.nasa.gov/office/oig/hq/ig-02-030.pdf
Proposal evaluation is an agency assessment of a contractor’s proposal
and ability to successfully perform the prospective contract. A
technical analysis of the contractor’s proposal is critical in helping
NASA to ensure it obtains a fair and reasonable price. A technical
evaluator assesses the proposed types and quantities of materials,
labor, and other associated factors set forth in the proposal to
determine the need for and reasonableness of the proposed resources.
For each proposal, the relative strengths, deficiencies, significant
weaknesses, and risks should be documented in the contract file.
Results of Audit
We found that NASA contracting officers at Johnson Space Center and
Marshall Space Flight Center can more effectively evaluate contract
proposals. The contracting officers used price and cost analyses in
accordance with the Federal Acquisition Regulation (FAR) requirements
but did not obtain adequate technical analyses to effectively evaluate
proposed costs. Specifically, Johnson and Marshall contracting
officers did not obtain and document complete technical analyses for 7
of 45 (16%) contracts reviewed. As a result, NASA had reduced
assurance that contractors’ abilities to accomplish the technical
requirements were adequately assessed or that fair and reasonable
prices were obtained on the seven contracts, which totaled $6.3
million.
In addition, contracting officers at Johnson issued two of three Small
Business Administration contracts without conducting adequate screening
to competitively select a technically capable small business company.
As a result, NASA did not have adequate assurance that it received fair
and reasonable prices and may have denied other potential small
business contractors the opportunity to compete for procurements.
Recommendations
We recommended that (1) the Johnson and Marshall procurement officers
direct contracting officers to obtain and document technical analyses
in accordance with the FAR and Center instructions, (2) the Marshall
procurement officer revise and update Center instructions and forms for
performing technical analyses, and
(3) the Johnson procurement officer direct contracting officers to
comply with the Center instruction for conducting small business
screening for noncompetitive contract requirements.
Management’s Response
Management concurred with all the recommendations in the report. We
consider management’s planned or implemented actions responsive.
To comment on this report, please send e-mail to igrelease@hq.nasa.gov.
