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Contract Not Adequately Reviewed by Contract Review Board - (ADS) 302.3.1.2 - Contract Review Board Guidelines

Summary: USAID policy requires that contracts exceeding $10 million be reviewed at various stages of the procurement process. However, the contract for the [...] program was not reviewed in accordance with this policy. This occurred because mission officials initially believed that the threshold for review was higher than $10 million. As a result, the contract was not adequately reviewed, exposing the Agency to possible legal action and contributing to contract ambiguities.

Reviewing the legal aspects of contracts before their execution is a common business practice. Similarly, USAID’s Automated Directives System (ADS) 302.3.1.2 requires that acquisition actions, such as contracts, that exceed $10 million be reviewed by USAID’s Contract Review Board (CRB).

The CRB reviews these actions to minimize USAID’s vulnerability to potential legal action, provide senior-level advice on contracting actions, and to support contracting officers. As part of this effort, the CRB includes attorneys from the Office of General Counsel experienced in Government contracting.

ADS 302.3.1.2 also requires that contracting officers submit actions to the CRB at the presolicitation, competitive range determination, and preaward stages of the procurement process. In submitting actions, the Contract Review Board Guidelines (a mandatory reference to ADS 302) recommends that contracting officers allow ample lead time to accommodate CRB review and to respond to mandatory findings.

General Recommendations

  • Notify acquisition staff of USAID requirements related to the Contract Review Board and establish a management control to help ensure that all prospective awards that meet the requirements for review by the Contract Review Board are submitted in a timely manner to the Board.

Source: AUDIT REPORT NO. 4-674-11-004-P JANUARY 4, 2011

The recommendations are derived from audit reports of the Office of the Inspector General. The source refers to the audit report, which is available on this site as part of the Audit Database Project: an educational tool for compliance with USAID regulations.  Please see the disclaimer of this site before using recommendations.

Tags: Awards and Contracts

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