Audit Report: Contracted Advisory and Assistance Services Contracts

Abstract

This is our final report on the Audit of Contracted Advisory and Assistance Services (CAAS) contracts for your information and use. Comments on a draft report were considered in preparing the final report. We made the audit from October 1988 through December 1990 as part of a Government-wide audit of CAAS by the President's Council on Integrity and Efficiency. The primary objective was to determine the adequacy of management controls over CAAS. The audit evaluated the use of sole-source contracts and unsolicited proposals, and whether contract modifications were used to significantly increase the scope and cost of the original contract. We also examined the process for deciding whether work was to be performed in-house or by CAAS, and the cost-effectiveness of contracting for the services. We reviewed the internal controls applicable to the identification, reporting, and procurement of CAAS. The audit included a random sample of 407 contract actions that were reported in the Federal Procurement Data System during FY 1987. DoD reported expendi­tures of $2.05 billion for CAAS and $1.8 billion for Contractor Support Services for FY 1987.