UNITED STATES DEPARTMENT OF THE INTERIOR

 STEWARDSHIP ACTION PLAN FOR SIGNIFICANT ACQUISITIONS RELATED TO HURRICANE KATRINA

 

I.  Purpose.  To provide an agency-wide action plan for ensuring prudent stewardship of taxpayer funds for current and future acquisitions supporting Hurricane Katrina rescue, recovery, and reconstruction operations. 

 

II.  Applicability.  This action plan applies to all Department of the Interior bureaus and offices involved in awarding acquisition transactions in support of Hurricane Katrina rescue and relief operations. If warranted, this plan will be expanded to include additional contingency contracting situations. The agency’s Senior Procurement Executive (SPE) will advise affected agency personnel of any expansion. 

 

III.  Definitions.

 

A.  Transactions in support of Hurricane Katrina rescue and relief operations.   Official and necessary expenses authorized to support agency mission including continuity of operations, and/or the disaster relief responsibilities/efforts of other agencies as provided for under the Economy Act or other appropriate authorities, and used to alleviate the suffering and damage resulting from Hurricane Katrina.

 

B.  Significant acquisition.  Based on an overall assessment of risk (considering awards to date, dollar amount of acquisitions, acquisition strategy, technical requirements, and related factors) and for purposes of this action plan, the Department of the Interior defines “significant acquisition” as follows:

 

 

C.  Exceptional circumstances.  Life-threatening circumstances and those situations posing an immediate threat to the safety of individuals and the public health.

 

 

 

IV.  Emergency Procurement Authorities.  To date, the Assistant Secretary – Policy, Management and Budget (i.e., the CAO) under the authority delegated her under Part 209, Chapter 4 of the U.S. Department of the Interior Departmental Manual, and the Senior Procurement Executive have issued the following policies, procedures, and internal controls to implement emergency procurement authorities:

 

A.  September 1, 2005, Department of the Interior Acquisition Policy Release (DIAPR) 2005-05: Departmental Class Justification and Approval to Limit Competition and Waiver of Publication Requirements for Acquisitions in Response to Hurricane Katrina; 

B.  September 6, 2005, Department of the Interior Determination and Findings increasing certain procurement thresholds for all Department of the Interior contracting activities in accordance with 41 USC 428a(b) and(c), except for construction subject to the Davis-Bacon Act, 40 USC 276 and limited to direct response to the current Hurricane Katrina disaster relief operations;

C.  September 9, 2005, Department of the Interior Determination and Findings, Amendment 1, amending the Department of the Interior Determination and Findings issued on September 6, 2005, which raised procurement thresholds identified in Federal Acquisition Regulation Part 13 in support of hurricane relief efforts, to eliminate the exception for construction subject to the Davis-Bacon Act stated in Determination 2, in accordance with Presidential Proclamation dated September 8, 2005.

 

D.  September 26, 2005, Department of the Interior Determination and Findings, Amendment 2, raising the procurement threshold for micro-purchases to $250,000 subject to the definitions, limitations, program management responsibilities, and additional acquisition responsibilities identified by the Office of Management and Budget (OMB) in its September 13, 2005 Memorandum for Chief Acquisition Officers and Chief Financial Officers regarding Governmentwide requirements for implementing management controls to support Public Law 109-62’s increased micro-purchase threshold for Hurricane Katrina Rescue and Relief Operations, and subsequent guidance issued by OMB during the week of September 19, 2005.

 

E.  October 4, 2005, Department of the Interior Determination and Findings, Amendment 3, supersedes Amendment 2, and implements Office of Management and Budget requirements limiting micro-purchase threshold, except for exceptional circumstances, the cases for which are subject to prior review and approval by the Office of Management and Budget, to $15,000.

 

 

V.  Oversight.   Spending on contingency operations, such as Hurricane Katrina, requires increased scrutiny and additional internal controls for each action defined as a “significant acquisition” (see III above).

 

A.  Review of Existing Procurement Actions.  In consultation with the Department of the Interior’s Senior Procurement Executive, the Interior CAO will require Interior bureau and office directors to establish Hurricane Relief Acquisition Review Boards on or about October 14, 2005 to review at regular intervals bureau/office contracting activity reports on all “significant acquisitions” in support of Hurricane Katrina rescue and relief operations (see Attachment A).  The boards will meet at regular intervals for the duration of the Hurricane Katrina relief effort.  The first in a series of board meetings will be held on or about October 21, 2005. 

 

The boards shall review their respective contracting activity reports on each “significant acquisition” to verify that the transactions identified in the reports (a) meet the definition of “transaction in support of Hurricane Katrina rescue and relief operations” as defined in section III.A., above; (b) comply with law and regulation; and (c) were otherwise reasonable and appropriate.  Further, the boards will determine whether modifications, terminations, or follow-on transactions are in the best interest of the government.

 

The boards will:

 

1. Develop an aggressive but realistic timetable for completing their review activities; and

 

2. Not more than 60 days following their initial meeting, will provide to the Interior Chief Acquisition Officer (Attention: Senior Procurement Executive) through their respective bureau/office director a comprehensive interim or final report (as appropriate)* of board activities including:

 

(a) transaction review findings and recommendations (including policy recommendations, e.g., suggestions related to the mitigation efforts identified in section V.B., below);

(b) corrective actions taken;

(c) any identified best practices; and

(d) lessons learned.

 

*    In cases where hurricane relief support is provided for a period beyond 60 days

      following the bureau/office Hurricane Relief Acquisition Review Board’s initial meeting,

      interim reports shall be provided to the Interior CAO in intervals of not more than 60

      days.  A final, comprehensive report will be required when a board has completed its

      review activities following the termination of bureau/office Hurricane Katrina relief

      support.  

 

3.  At minimum, include the bureau/office: (1) Head of Contracting Activity; (2) Bureau Procurement Chief; (3) Chief Financial Officer; (4) Chief Information Officer (as appropriate); (5) Engineering or Facility/Construction representative or other program representative (as appropriate) -- or their designees. 

 

Representatives from the Office of the Secretary Office of Acquisition and Property Management, and Office of the Solicitor will be available to the boards in an advisory capacity.  Follow-up reviews of any of the identified significant acquisition transactions may be made by representatives of either or both the Office of Acquisition and Property Management and the Office of the Solicitor at the Solicitor and/or the Senior Procurement Executive’s discretion.   

 

B.  Internal Controls for Future Procurement Actions.  Moreover, based on their hurricane rescue/relief experiences and needs, the boards shall, as part of their reporting process, identify and elevate for Departmental consideration and implementation, processes for mitigating acquisition, financial and program management risk for future Katrina-related activities.  These processes shall reflect an increased level of oversight and attention for “significant acquisitions,” as defined above.  Mitigation efforts shall include, at a minimum, the following outcomes.

 

1.       Minimization of variances in cost, schedule, or performance of “significant acquisitions.”  

 

2.       Increased program management approvals based on the risk and value of “significant acquisitions.”

 

3.       Additional program management responsibilities to monitor contractor performance, as well as to verify that contractors have performed fully in accordance with the terms & conditions of their “significant acquisitions.”

 

4.       Additional financial management controls.

 

C.  Reporting.  The boards shall establish internal reporting requirements (including frequency thereof) for Katrina-related rescue/relief acquisition activities, with emphasis on “significant acquisitions.” Bureaus/offices will use Attachment A (format for tracking significant acquisition information) as a reporting tool in addition to appropriate Bank of America charge card, and Federal Procurement Data System-Next Generation reports to meet their review, oversight and reporting needs.

 

VI.  Managing Interagency Contracting.  When conducting acquisitions for other Federal agencies, cognizant contracting officers and funds certifying officials will apply additional oversight to ensure the requesting agency has:

 

 A.  the authority to make the purchase;

 B.  provided sufficient funds; and

 C.  approved the statement of work, and otherwise concurs with the acquisition and program management plan established for the acquisition.

 

Cognizant contracting officers shall fully document the transaction, including the date and time of the request, the name and contact information of the requesting official, and funding authorization information.

VII.  Responsibilities.   Bureau/office Heads of Contracting Activity shall articulate the various roles, responsibilities, and thresholds for appropriate acquisition-related officials, such as those listed below, in Katrina-related activities within the limitations and in compliance with the requirements identified in the Emergency Procurement Authorities issued by the Interior CAO and SPE.  However, approval thresholds for “significant acquisitions” shall generally be at a level higher than non-contingency contracting transactions. 

 

VIII.  Additional Guidance.   September 23, 2005:  Interior Chief Information Officer Memorandum to Assistant Secretaries and Heads of Bureaus and Offices:  Temporary Approval of Wireless Technologies Waiver Requests to Support Emergency Efforts. 

In addition to the guidelines issued in IV above, the boards shall compile and provide to the CAO     with their report(s) any additional Katrina-related guidance issued by their bureaus/offices organizations, the DOI, CFO, Office of Inspector General or other organizations that affects the acquisition process for this effort.  

IX.    Contingency Contracting Personnel.  After consulting with appropriate Departmental personnel, and based upon the recommendations of the Bureau Procurement Chief of each contracting activity, the Department of the Interior has determined that it has sufficient contracting personnel and organizational infrastructure in place to fulfill mission requirements related to disaster relief, specifically the Hurricane Katrina effort. Moreover, the agency’s Integrated Charge Card Program includes requisite competencies (including training) for purchase cardholders and Approving Officials.  The SPE shall remain in close contact with the Bureau Procurement Chiefs and the Integrated Charge Card Program Manager. Should  the existing acquisition competencies need to be strengthened or new competencies developed, the CAO and SPE shall -- no later than November 1, 2005 -- develop a training and development plan to achieve that goal. 

  X.     Effective Date.  This contingency contracting action plan is effective upon signature.

 

 

/signed P. Lynn Scarlett/                                              10/04/2005

             _____________________________             ­­­­____________________

               P. Lynn Scarlett                                                         Date

               Assistant Secretary – Policy,

                  Management and Budget

 

                                                             

 

 

 

Attachment A

 

REPORT OF “SIGNIFICANT ACQUISITION” ACTIONS FOR THE PERIOD OF _______________ TO ________________ FOR THE KATRINA RELIEF EFFORT

 

DOI Bureau/ Office

Dollar Amt of Action

Source of Funding (e.g., FEMA)

Contract vehicle no. (e.g., contract, purchase order, delivery order, task order no.)

Requirement Description

Period of Performance

Significant Acquisition Authority Used*

Approving Official (e.g., CAO, SPE, HCA, etc.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Identify type of “Significant Acquisition” awarded.  See definition in Paragraph III of Plan.