While AMMD has the primary  responsibility of awarding and administering contracts, AMMD often  works with the AOC’s jurisdictions and offices to assist in monitoring the  progress of contracts awarded to support AOC’s various projects, such as  the restoration of the Capitol Dome. From fiscal years 2011 through 2015, AOC obligated, on average, $326  million annually to procure goods and services. In general, for the 21 contracts and orders we reviewed, AOC officials  implemented procedures related to these critical functions, such as  documenting justifications for the use of noncompetitive procedures, in a  manner consistent with the manual. However,  the agency conducts limited analysis of the factors driving the number of  sole-source awards or the level of competition achieved across different  product types. Such analysis could help identify where additional  management attention may be needed to maximize competition to the  fullest extent. AOC Has Developed Contracting Practices

In 2014, AOC issued a contracting manual that incorporates statutes and  federal regulations applicable to the AOC, as well as internal policies in  order to provide uniform policies across the agency and guidance to  personnel. The manual covers topics central to AOC day-to-day  contracting functions, such as acquisition planning, market research, and  competition, all of which we have previously found to be key aspects of a  sound acquisition process. We  found that AOC employs a number of different ways of conducting market  research that reflect what is in the contracting manual. Our  analysis of AOC procurement data showed that the agency competed  approximately 50 percent of its contract obligations for the past 3 fiscal  years—compared to 65 percent for the federal government overall. Federal internal control standards call for agencies to establish  mechanisms to track and assess performance against their objectives. The AOC began to collect competition  data in fiscal year 2012. AOC Uses a Variety of Approaches to Monitor Contractor Performance, but Does Not Have Suspension and Debarment Procedures

AOC uses various approaches to monitor contractors’ progress and work  quality and address contractor performance, but does not have  suspension and debarment procedures. AOC may issue multiple notices on the same matter before it is  fully addressed. Consistent with the findings from our prior work, in a September 2012  management letter, the AOC Inspector General proposed that AOC  develop a suspension and debarment process as a means to deal with  “unscrupulous or ineffective contractors.” According to AOC officials, the  agency declined to implement that recommendation, largely because  without being subject to the FAR, AOC believed it could only debar  contractors from doing business with AOC, and it was thought that the  small number of actions anticipated would likely not justify the cost of  developing a new process. GAO, which is also a legislative branch agency,  established a suspension and debarment process in 2012. Recommendations for Executive Action

To further enhance the acquisition function, we recommend that the  Architect of the Capitol take the following two actions:
Explore options for developing a more robust analysis of AOC’s  competition levels, including areas such as the trends in competition  over time, the use of market research to enhance competition, and the  types of goods and services for which competition could be increased;
Establish a process for suspensions and debarments that is suitable  for the AOC’s mission and organizational structure, focusing on  policies, staff responsibilities, and a referral process. AOC agreed with our findings, concurred with our recommendations  and noted it is taking steps to implement them. Appendix I: Objectives, Scope, and Methodology

Our objectives were to assess (1) the extent to which AOC has developed  and implemented acquisition policies and processes to guide its  contracting function, and (2) the tools used by AOC to monitor and  address contractor performance. We selected a non-generalizable  sample of 21 contracts and orders, during this timeframe to obtain  insights into AOC’s recent contracting practices. We also  interviewed AOC contracting officials and contracting officer’s technical  representative about their experiences in monitoring contractor  performance.
Why GAO Did This Study

The AOC is responsible for the maintenance, operation, and preservation of the buildings and grounds of the U.S. Capitol complex, which covers more than 17.4 million square feet in buildings and 587 acres of grounds. In fiscal year 2015, Congress appropriated $600.3 million to fund AOC's operations, over half of which was used to procure various goods and services ranging from large projects like the restoration of the Capitol Dome, to routine custodial services.
GAO was asked to review the AOC's contracting practices. This report examines (1) the extent to which the AOC has developed and implemented acquisition policies and processes to guide its contracting function, and (2) the tools used by the AOC to monitor and address contractor performance. GAO reviewed the AOC's acquisition policies, interviewed contracting officials, and reviewed a non-generalizable sample of 21 contracts and task or delivery orders with dollars obligated in fiscal years 2013 through 2015. The sample consists of a mix of high-value contracts for goods and services.

What GAO Found

The Architect of the Capitol (AOC) recently implemented a contracting manual that centralizes current law and regulations applicable to the AOC, as well as policies, orders and procedures. As a legislative branch agency, the AOC is not subject to the Federal Acquisition Regulation (FAR) which governs executive branch agencies; however, its manual draws on the FAR and covers topics central to the AOC's day-to-day contracting functions, such as acquisition planning, market research, and competition, all of which are key aspects of a sound acquisition process. In the 21 contracts and task orders GAO reviewed, AOC officials generally followed the policies in the contracting manual related to these critical functions—such as documenting justifications for the use of noncompetitive procedures.
The AOC began to collect competition data in fiscal year 2012, but the agency only conducts a limited assessment of its efforts to achieve competition. The AOC manual states it is agency policy to promote competition, and federal internal control standards state that agencies should establish mechanisms to track and assess performance against their objectives. While the AOC monitors data to track the number of sole-source contracts awarded, other analyses are limited. GAO's analysis of the AOC's data found that the agency competed approximately 50 percent of its contract obligations for the past 3 fiscal years—compared to 65 percent for the overall federal government. By examining the factors driving the number of sole-source awards or level of competition across different product types, AOC may be better positioned to identify where additional management attention may be needed to maximize competition.
The AOC uses a variety of approaches to monitor contractor performance on its projects, with contracting officers and their technical representatives being the primary officials responsible for providing oversight. The AOC uses a number of methods to address contractor performance problems, as shown in the figure below.
While the AOC has tools for addressing poor performance on specific contracts, it does not have a suspension and debarment process in place that could bar irresponsible contractors from working for the AOC or provide notice to other government agencies. Past GAO work has shown that having suspension and debarment procedures is critical to ensuring that the government only does business with responsible contractors.

What GAO Recommends

GAO recommends that AOC explore options for developing a more robust analysis of its competition levels and establish a suspension and debarment process suitable to its mission and structure. AOC agreed with GAO's findings and concurred with the two recommendations and noted it is taking steps to implement them.