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Tuesday, September 8, 2015

OIG: CFPB Can Enhance Contract Management Process

The Office of the Inspector General for the CFPB found that the Bureau can enhance its contract management process and related controls. Of the 29 contracts the OIG assessed in its audit of the CFPB’s compliance with applicable laws, regulations, policies and procedures and the effectiveness of internal controls related to contract management, three contracts could have been improved. These three contracts represented $6.2 million out of $166 million. The problems with the three contracts are that the CFPB:

  1. Made payments that did not conform to the contract and the Federal Acquisition Regulation for a system that was not completed and implemented;
  2. Did not adequately monitor a contract with contingent and uncertain license costs and settled a claim for licenses that exceeded the planned funding amount; and
  3. Required a contractor to change its site location one week after the task was assigned, resulting in a 21.5% labor rate increase.

The OIG recommends that the CFPB enhance policy to clarify the functions of contracting officer’s representatives, improve contract protections and related notifications and develop and implement required standards and procedures. The CFPB concurred with the OIG’s recommendations and took steps to comply.

Read the OIG report.

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