Federal Contractors: Actions Needed to Improve Quality of Performance and Integrity Data
Fast Facts
Most people don't contract with professionals without checking their past performance. Since the government spends billions of dollars on contracts, it's even more important for agencies to have accurate information on whether contractors are reliable before deciding to work with them. Where do they get it?
Agencies are supposed to report on contractor performance and conduct. But between FY 2019-2023, agency personnel didn't always report this information as required. In some cases, they didn't know or understand their reporting requirements.
We made recommendations to ensure agency personnel are aware of the requirements.
Highlights
What GAO Found
The Federal Awardee Performance and Integrity Information System (FAPIIS) is a database that provides a “report card” on prospective contractors. FAPIIS data—referred to as integrity records—include information such as whether a contract was terminated due to the fault of the contractor. Agencies are responsible for reporting FAPIIS data in accordance with federal regulations.
Federal agencies reported 2,384 integrity records in FAPIIS for contractors from fiscal years 2019 through 2023. Ninety percent of those records were for contract terminations.
Selected Types of Government-wide Integrity Records, Fiscal Years 2019-2023
During the 5-year period, GAO identified government-wide reporting gaps. Specifically, 335 contract terminations and 52 administrative agreements were reported in other sources but not in FAPIIS. The reporting gaps merit a reiteration of the Office of Management and Budget's (OMB) guidance on actions that agencies can take to ensure the quality of integrity records.
Selected agencies varied in the extent to which their policies and processes ensured integrity data quality. For example:
- The Department of Defense (DOD) has processes to check terminations but had limited insight into why 166 records were not reported in FAPIIS.
- The General Services Administration (GSA) cited gaps in its guidance and limited awareness of reporting requirements among personnel as the causes for terminations not reported in FAPIIS.
- The Departments of Energy (DOE), Health and Human Services (HHS), and Veterans Affairs (VA) cited various reasons for not reporting terminations and have since addressed them.
The extent of overall FAPIIS underreporting government-wide and at GAO's selected agencies warrants additional action from OMB and some agencies. Ensuring awareness of these requirements among agencies' personnel will improve the quality of information to support award decisions.
Why GAO Did This Study
In fiscal year 2023, the federal government awarded contracts to about 109,000 contractors with about $760 billion in obligations. Contracting officers are generally required to ensure that prospective contractors are responsible and can successfully perform the work. Reviewing information in FAPIIS is required for contracts above a certain dollar threshold.
GAO was asked to review agencies' policies and processes pertaining to integrity data. This report: (1) describes the integrity information reported in FAPIIS; and examines (2) the extent to which there are data gaps in FAPIIS government-wide; and (3) the extent to which selected agencies' policies and processes ensure the quality of contractor integrity information.
GAO analyzed FAPIIS data reported from fiscal years 2019 through 2023 and compared them against other sources to check data quality. GAO analyzed documents and interviewed officials at DOD, DOE, GSA, HHS, and VA (agencies selected based on high contract obligations and number of integrity records), as well as at OMB, on integrity data quality policies and processes.
Recommendations
GAO is making four recommendations, including that OMB reiterate integrity reporting requirements, and that DOD and GSA take steps to ensure their personnel have awareness of integrity reporting requirements. All of the agencies concurred with the recommendations. DOD and GSA identified specific steps to address the recommendations to them.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of Management and Budget | The Director of OMB should direct the Administrator of the Office of Federal Procurement Policy to reiterate integrity reporting requirements and identify available resources to help ensure that agency personnel have the guidance they need to comprehensively report and verify the accuracy of integrity information. (Recommendation 1) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Defense | The Secretary of Defense should direct the Under Secretary of Defense for Acquisition and Sustainment to coordinate with the components to identify and assess underlying causes of integrity information underreporting. (Recommendation 2) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Defense | The Secretary of Defense should direct the Under Secretary of Defense for Acquisition and Sustainment to take steps, such as policy updates, based on its assessment of underlying causes for integrity information underreporting, to ensure that agency personnel have information and awareness of integrity reporting requirements. (Recommendation 3) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| General Services Administration | The Administrator of the General Services Administration should ensure that when the Office of Government-wide Policy updates its guidance, that it includes input from agency contracting personnel to ensure awareness of integrity reporting requirements and available resources for verifying the information. (Recommendation 4) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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