Federal Agencies' Use of Consultant Service Contracts

A GAO report on consultant service contracts entered into by six Federal agencies revealed serious deficiencies and abuses that are probably widespread and common in the executive branch. Attempts by the Office of Management and Budget (OMB) to control the use of consultant contracts by requiring periodic reports from the executive agencies have been ineffective because the definition established by OMB to identify consulting contracts is so narrow that only a small percentage of the contracts that should be considered are examined. The report showed that many consultant contracts are issued without sufficient need, that too many were issued under sole source procurements, and that they were highly subject to modifications that increased their scope, cost, and period of performance. GAO recommended that the Director of OMB instruct Federal agencies to challenge program office requirements for consulting services more rigorously and suggested the establishment of an independent board in each agency with sufficient power and authority to perform that function.