However, we believe that Team Nutrition officials acted improperly in assigning tasks under the Global contract that were beyond the contract’s scope of work. These officials also did not follow normal contracting procedures in dealing with subcontractors under the Global contract. This evaluation, for which FCS has budgeted about $49,000, differs materially from the subject matter of the Global contract, which is to assist FCS in its efforts to provide “effective nutrition education” and to communicate “sound nutrition information.”
Furthermore, contrary to normal contracting practices, Team Nutrition officials directed Global to hire specific subcontractors and did not give Global the opportunity to perform the work itself. Therefore, the COR did not provide the technical direction that Prospect needed to effectively perform several tasks. To assess the impact of these characters on the Team Nutrition nutrition education campaign, FCS had Global conduct focus groups to determine what messages children were receiving from these characters. However, the Under Secretary for Food, Nutrition and Consumer Services, through her involvement in the administration of this grant, violated federal ethics regulations. However, our review of the former Project Manager’s employment application raised several concerns about her qualifications for the position she held. Failure to Comply With Agency’s Procedures and Poor Planning Resulted in Procurement and Personnel Problems

USDA’s problems in managing its Team Nutrition procurement and personnel hiring practices can be attributed largely to the failure to follow the agency’s procedures and the lack of a strategic plan for the Team Nutrition initiative. These steps included establishing new operational procedures and increasing reporting responsibilities.
Why GAO Did This Study

Pursuant to a congressional request, GAO discussed the Department of Agriculture's (USDA) Team Nutrition contracts, cooperative agreement, and grant for multimedia nutrition education.

What GAO Found

GAO noted that: (1) Team Nutrition officials acted improperly in assigning tasks under the the Global contract and did not follow normal contracting procedures in dealing with Global's subcontractors; (2) Team Nutrition officials did not provide the technical direction that another contractor needed to perform several tasks; (3) Team Nutrition failed to determine the message that children were receiving from the Team Nutrition Initiative advertisement; (4) the Under Secretary for Food, Nutrition, and Consumer Services (FCS) violated federal ethics regulations by participating in the administration of this grant; (5) FCS improperly reviewed the former project manager's employment application, academic credentials, and financial disclosure statements; (6) USDA management problems resulted from USDA failure to follow agency procedures and its lack of a strategic plan for the Team Nutrition Initiative; and (7) FCS has taken steps to improve its procurement and personnel practices, including establishing new operational procedures, increasing reporting responsibilities, requiring procurement administration training, establishing an agency ombudsman to handle procurement improprieties, tightening procedures for the applications process, reviewing applicant documentation, and intensifying collection of employee financial disclosure statements.