For example, HUD instituted full-time GTR positions in its program offices to assist in contract administration. HUD Does Not Employ Certain Processes and Practices that Would Facilitate Effective Contractor Monitoring

Holding contractors accountable for results requires processes and procedures to facilitate effective monitoring. HUD’s Monitoring of Contractors Is Not Systematic

HUD does not employ a systematic process for monitoring its contractors that consistently uses plans and risk-based strategies needed to guide its monitoring; nor does HUD track contractor performance needed for such plans and strategies. Weaknesses in Monitoring Limit HUD’s Ability to Prevent Contractor Fraud, Waste, or Abuse

Weaknesses in HUD’s monitoring processes limit the department’s ability to identify and correct contractor performance problems, hold contractors accountable, and assure itself that it is receiving the services for which it pays. HUD does not strategically manage its acquisition workforce to ensure that individuals have the appropriate workload, skills, and training that allows them to effectively perform their jobs. HUD’s centralized contract management information system and several financial management information systems lack complete, consistent, and accurate information—thus, these systems do not adequately support the department’s efforts to manage and monitor contracts. HUD’s Financial Management Information Systems Do Not Readily Provide Contracting Obligation and Expenditure Data

HUD’s program offices also record contracting obligation and expenditure information in various financial management information systems. HUD has already taken steps toward improving its acquisition management; however, weaknesses remain in HUD’s monitoring processes, management of its acquisition workforce, and programmatic and financial management systems that support its contracting. Appendix II: Sampling Methodology for GAO Survey of HUD’s Acquisition Management Reforms

	Objectives

Our primary objectives in the survey were to (1) assess the acquisition workforce workload, (2) assess the availability of training and the perceived usefulness of the training that the staff receive, (3) determine the extent to which HUD’s data systems are used to support its contract management and monitoring, and (4) determine the ways in which the acquisition workforce monitor HUD’s contractors.
Why GAO Did This Study

In the 1990s the Department of Housing and Urban Development (HUD) dramatically downsized its staff, however, its mission did not decrease. As a consequence, HUD relies more heavily on private contractors, and needs to hold its contractors accountable for results. GAO was asked to determine if HUD has processes and practices in place to effectively oversee contractors, strategically manages its acquisition workforce, and has management information systems that support its acquisition workforce.

What GAO Found

HUD's contracting has increased significantly in recent years. Although HUD has taken actions to improve its acquisition management--such as instituting full-time contract monitoring positions and improving its contracting information system--weaknesses remain that limit HUD's ability to identify and correct contractor performance problems, assure that it is receiving the services for which it pays, and hold contractors accountable for results. HUD, in particular, its multifamily housing program, does not employ processes and practices that could facilitate effective monitoring. For example, HUD's monitoring process does not consistently include the use of contract monitoring plans or risk-based strategies, or the tracking of contractor performance. HUD has not ensured that individuals responsible for managing and monitoring contracts have the appropriate workload, skills, and training that would enable them to effectively perform their jobs. For example, according to HUD's records, over half of the staff who are directly responsible for monitoring contractor performance have not received required acquisition training. HUD's management information systems do not adequately support its acquisition workforce in their efforts to manage and monitor contracts. Specifically, key information in HUD's contracting system is not reliable and HUD's financial systems do not readily provide complete and consistent contracting obligation and expenditure data.