	Background

For nearly 25 years, the United States has provided the Cuban people with  alternative sources of news and information. IBB’S Approach for Awarding Selected Radio and Television Broadcasting Contracts Did Not Reflect Sound Business Practices

IBB’s approach for awarding the Radio Mambi and TV Azteca contracts  did not reflect sound business practices in certain key aspects. IBB’s  approach was predicated on the confluence of several interrelated  events—ongoing interagency deliberations, the issuance of a July 2006  report by the Commission for Assistance to a Free Cuba, and concerns  about the health of Fidel Castro. In  certain respects, however, IBB did not document in its contract files key  information or assumptions underlying its decisions to not seek  competitive offers, limit the number of potential providers it considered,  or the basis used to negotiate the final prices for the services provided. In  addition, IBB did not actively involve its contracting office until just prior  to contract award. Finally, while justifying the December 2006 award of  the two contracts on the basis of urgent and compelling need and the  determination that only one source would meet its minimum needs, IBB  chose to exercise multiple options on the two contracts to extend their  period of performance into 2008 and has only recently taken steps to  identify additional providers. OCB’s Practices Provide Limited Visibility into Key Steps When Acquiring Talent Services Contractors

OCB’s practices provide limited visibility into key steps in soliciting,  evaluating, and selecting its talent services contractors. In that regard,  OCB does not require that managers document instances in which  resumes were received from sources other than formal solicitation means  nor require that managers document their evaluation of the resumes  received. The usefulness of the handbook’s pricing  guidance, however, may be limited as the rates in the handbook are  neither current nor based on the local Miami market and because OCB, at  times, has reduced the rates it pays due to budget constraints. The competition laws and regulations  provide agencies considerable flexibility to use noncompetitive  procedures, if adequately justified, to meet their needs and permit  agencies to use less rigorous procedures for lower dollar acquisitions. With respect to improving IBB’s guidance governing contracts for talent  services, we recommend that the Broadcasting Board of Governors direct  IBB to take the following two actions:    clarify requirements in IBB’s Contracting for Talent and Other  Professional Services Handbook on the receipt and evaluation of  resumes and ensure that OCB’s practices are consistent with IBB’s  guidance, and    determine how the pricing guidance in IBB’s handbook could better  meet users’ needs as part of its planned revision to the handbook. Appendix I: Scope and Methodology

Our objectives were to evaluate the processes used (1) by the  International Broadcasting Bureau (IBB) to award the Radio Mambi and  TV Azteca contracts, and (2) by the Office of Cuba Broadcasting (OCB) to  award its talent services contracts. For the purposes of this review, talent  services contracts refer to those contracts awarded by OCB for writers,  performers, program hosts, reporters, and technical support required to  produce and broadcast radio and TV news and entertainment  programming.
Why GAO Did This Study

The United States has long provided the Cuban people with alternative sources of news and information. As part of this effort, in December 2006 the International Broadcasting Bureau (IBB) awarded sole-source contracts to two Miami radio and television stations--Radio Mambi and TV Azteca--to provide additional broadcasting options. Additionally, the Office of Cuba Broadcasting (OCB) annually awards millions of dollars in contracts for talent services--writers, reporters, and technical support--needed to produce and broadcast news and entertainment programming. GAO evaluated the processes used to award (1) the Radio Mambi and TV Azteca broadcasting contracts, and (2) talent services contracts. We reviewed contract files and other documentation and interviewed program managers and contracting officers to determine the process used to award the two broadcasting contracts and a nongeneralizable selection of 37 talent services contracts.

What GAO Found

IBB's approach for awarding the Radio Mambi and TV Azteca contracts did not reflect sound business practices. According to officials from IBB and the Broadcasting Board of Governors--IBB's and OCB's parent organization--the confluence of several interrelated events--ongoing interagency deliberations, the issuance of a July 2006 report by a Cabinet-level commission, and concerns about the health of Fidel Castro--required them to quickly obtain additional broadcasting services to Cuba. Competition laws and regulations provide agencies considerable flexibility to use noncompetitive procedures, if adequately justified, to meet their needs. In certain respects, however, IBB did not fully document in its contract files key information or assumptions underlying its decisions to not seek competitive offers, limit the number of potential providers it considered, or the basis used to negotiate the final prices for the services provided. Additionally, IBB did not actively involve its contracting office until just prior to contract award, though agency regulations and our prior work identify that timely involvement by stakeholders helps promote successful acquisition outcomes. Finally, though it partly justified its awards based on urgency, IBB exercised multiple options on the two contracts to extend their period of performance into 2008. Only recently has it taken steps to identify additional providers. OCB's practices for soliciting, evaluating, and selecting its talent contractors provide limited visibility at key steps. OCB issues quarterly announcements in Federal Business Opportunities, advertises annually in a local newspaper, and posts announcements at OCB's headquarters. OCB does not require, however, that managers document instances in which resumes were received from sources outside these processes, such as when a contractor is recommended by an OCB employee. Further, OCB does not document why other potential providers were not selected as required by IBB's guidance, in part due to questions about how to meet this requirement. Lastly, OCB managers use an IBB handbook to justify how much it pays for talent services, but the usefulness of the handbook's pricing guidance may be limited as the recommended rates are not current or based on the local market.