National Science Foundation: Status of the Business Analysis Plan
Contract (10-JUL-03, GAO-03-832R).
In June 2002, the National Science Foundation (NSF) awarded a
3-year, $14.8 million contract for a business analysis plan to
support three key management areas at the foundation: its
business processes, human capital, and information technology.
The contract is to be completed by September 30, 2005, and is to
result in seven deliverables, including a project plan to guide
the contractor's work. You asked us to obtain information on (1)
the status of contract funds budgeted to the key management areas
and contract deliverables, and overall plans for the contract;
(2) the extent to which the contract will address management
issues previously reported by audit and oversight bodies; and (3)
NSF's management of the contract and plans for integrating any
recommendations made by the contractor.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-03-832R
ACCNO: A07533
TITLE: National Science Foundation: Status of the Business
Analysis Plan Contract
DATE: 07/10/2003
SUBJECT: Contract oversight
Contract administration
Contract costs
Financial management
Strategic planning
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GAO-03-832R
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract
July 10, 2003 The Honorable Christopher S. Bond Chairman, Subcommittee on
VA, HUD, and Independent Agencies Committee on Appropriations United
States Senate
Subject: National Science Foundation: Status of the Business Analysis Plan
Contract
Dear Mr. Chairman: In June 2002, the National Science Foundation (NSF)
awarded a 3- year, $14.8 million contract for a business analysis plan to
support three key management areas at the foundation: its business
processes, human capital, and information technology. The contract is to
be completed by September 30, 2005, and is to result in seven
deliverables, including a project plan to guide the contractor*s work.
You asked us to obtain information on (1) the status of contract funds
budgeted to the key management areas and contract deliverables, and
overall plans for the contract; (2) the extent to which the contract will
address management issues previously reported by audit and oversight
bodies; and (3) NSF*s management of the contract and plans for integrating
any recommendations made by the contractor. We provided your staff with a
formal briefing on our findings on May 14, 2003. A copy of our briefing is
enclosed. 1 In summary, we found the following:
As of May 31, 2003, NSF had spent about $1.9 million on the contract, with
business processes and human capital management accounting for about 75
percent of the expenditures and information technology accounting for the
remainder. Expenditure data by individual contract deliverable were
unavailable because NSF did not estimate and is not tracking the costs of
deliverables due from the contractor. NSF*s current schedule for the
contract reflects delays for early deliverables, including the first
deliverable, the project plan. The contractor delivered a draft project
plan to NSF on June 30, 2003, and NSF is working with the contractor to
finalize it by July 15, 2003, over a year later than originally planned.
Agency officials attributed delays of
1 We have updated our briefing slides to reflect current expenditure data
and a revised estimated project plan completion date discussed in this
report.
United States General Accounting Office Washington, DC 20548
GAO- 03- 832R NSF Business Analysis Plan Contract Page 2 early
deliverables primarily to funding limitations during fiscal year 2002 and
the first
half of fiscal year 2003. Despite the initial delays, NSF still expects
the contract to be completed by its originally planned date. NSF plans to
spend only the original base amount of the contract*$ 12.8 million* and
does not have any current plans to use the additional $2 million it
reserved for ad hoc analyses.
The extent to which key management issues identified by audit and
oversight bodies will be addressed under the contract is unknown. Over the
past few years, audit and oversight bodies such as GAO, the Office of
Management and Budget, and NSF*s Office of the Inspector General have
reported on various management issues at NSF, including issues related to
budget performance, financial management, human capital, information
technology, and award and project management. NSF*s initial contract
documents, such as its statement of work and request for proposals,
contained provisions for the majority of these management issues to be
included in the scope of the contract. The awarded contract requires the
contractor to perform early survey work to determine the specific issues
to address within the contract deliverables. Therefore, until the survey
work and project plan are completed, the extent to which the key
management issues will be addressed under the contract is unknown.
Before and since the award of the contract, NSF contract management staff
has kept senior- level officials apprised, through periodic briefings, of
its plans for and progress on the contract. The NSF organizations that
have been involved in monitoring or oversight activities of the business
analysis plan contract include
a steering committee for the contract, chaired by the contracting
officer*s technical representative and consisting of senior- level
management and nonmanagement staff in all program areas covered by the
contract;
senior management officials, including the Director and Deputy Director of
NSF and the heads of most research directorates and staff offices;
the Business and Operations Advisory Committee, which advises both the
Director of Budget, Finance and Award Management and the Director of
Information and Resource Management;
the National Science Board*s Audit and Oversight Committee; and
NSF*s Office of the Inspector General. Some of these organizations also
have provided advice and guidance on the contract. For example, the
Business and Operations Advisory Committee encouraged the business
analysis team to consider, among other things, how other government- wide
efforts, such as enterprise architecture, might affect its work and
recommendations. In addition, the committee encouraged the team to
coordinate with other ongoing work at NSF that might have implications for
the business analysis plan. Also, in the early stages of contract
development, the Office of the Inspector General encouraged strong
oversight of the contractor by NSF.
To implement any recommendations resulting from the contract, NSF plans to
work the recommendations through its normal chain of command. For some
GAO- 03- 832R NSF Business Analysis Plan Contract Page 3 recommendations
requiring agencywide change, NSF*s Office of Integrative
Activities, which is responsible for integrating many crosscutting issues
across the agency, will develop an implementation strategy and devolve the
actual implementation to the relevant division or office. For other
crosscutting recommendations, NSF will decide on a case- by- case basis
whether to assign development of an implementation strategy to an existing
working group or create a new one. NSF plans to request additional
appropriations, as necessary, to cover the cost of implementing any
recommendations resulting from the contract. For example, NSF already has
requested $1 million in its fiscal year 2004 budget request to implement
human capital recommendations anticipated from the contractor. We provided
a draft of this report to the Director of NSF for comment. In response,
we received oral comments from the NSF contracting officer*s technical
representative responsible for managing the contract and from other senior
management officials including the Chief Human Capital Officer and Chief
Financial Officer. The NSF officials generally agreed with the information
presented in our report and provided some clarifying comments that we
incorporated as appropriate.
Our methodology is discussed in the enclosed slides. We performed our work
from January 2003 through June 2003 in accordance with generally accepted
government auditing standards.
- - - - - - We are sending copies of this report to the Director of NSF.
In addition, this report will be available at no charge on the GAO Web
site at http:// www. gao. gov.
If you have any questions about this report or need additional
information, please contact me at (202) 512- 3841. Key contributors to
this report were David P. Bixler, Michael E. Gilbert, and Lynn M.
Wasielewski.
Sincerely yours, Robin M. Nazzaro Director, Natural Resources
and Environment Enclosure
Enclosure
Page4 GAO- 03- 832R NSF Business Analysis Plan Contract
National Science Foundation: Status of the Business Analysis Plan
Briefing Subcommittee on VA, HUD, and
Independent Agencies Committee on Appropriations
U. S. Senate May 14, 2003
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 5
1
Briefing Overview
* Background Objectives Scope and Methodology Results in Brief
Contract Funding Management Issues Contract Oversight and Management
Related Studies at NSF
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 6
2
Background
NSF*s mission includes promoting the progress of science; advancing
the nation*s health, prosperity, and welfare; and securing national
defense.
NSF*s FY 2002 Administration and Management (A& M) Strategic Plan
focuses on improvements in three areas to support NSF*s mission:
Business processes, Human capital, and Technology and tools.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 7
3
Background
(continued) A& M plan also focuses on improvement in five mission-
critical business processes:
Merit review Award management and oversight Resource allocation
Performance assessment and accountability Knowledge management
A& M plan announced initiation of a comprehensive, multi- year business
analysis to support its human capital, mission- critical business
processes, and information technology management
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 8
4
Background
(continued) NSF awarded a 3- year, $14.8 million business analysis
contract to BoozAllen- Hamilton (BAH) in June 2002
Contract base amount is $12.8 million, with an additional $2 million
reserved as discretionary funding
Contract scheduled for completion end of FY 2005; will consist of 7
individual products (deliverables): Project plan Business analysis
assessment Document current environment Business analysis plan for
core processes Human capital management plan IT and enterprise
architecture plan Final report
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 9
5
Objectives
To provide information on The status of contract funds by key management
areas
and contract deliverables, and NSF*s overall plans for the contract; The
extent to which the contract addresses management
issues cited by audit and oversight bodies; and NSF*s management of the
contract and plans for integrating any recommended actions.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 10
6
Scope and Methodology
To determine The status of contract funding, we reviewed budget
documentation and expenditure records, and interviewed NSF officials.
The extent to which the contract addresses management challenges, we
compared management issues cited in GAO, OIG, OMB, and NSF documents with
issues addressed in the initial contract documentation, and interviewed
NSF contract officials.
NSF*s management of the contract and plans for integrating contractor
recommendations, we identified management oversight functions and the
frequency of oversight activities; reviewed records of meetings, including
minutes by oversight bodies; and interviewed NSF officials.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 11
7
Results in Brief
Contract funding $1. 9 million spent as of May 31, 2003, among three
management areas 1 Costs of deliverables not estimated or tracked
Early deliverables, including the project plan, have been delayed, but NSF
still plans to complete the contract on schedule in FY 2005 Management
issues
Key management issues identified by audit and oversight bodies are to be
assessed by the contractor to determine the final scope of work for each
issue Extent and how issues will be addressed not fully known until
project plan is completed Contract oversight and management Oversight
and management structure in place
NSF plans to request separate appropriations to implement
recommendations
1 Expenditure data have been updated to reflect the most recent available
data; the original data reported in the briefing were as of March 31,
2003.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 12
8
Contract Funding
Summary Expect to spend $12. 8 million of $14. 8 million awarded $1.9
million spent as of May 31, 2003 1
Expenditures came from the salaries and expense appropriation Costs of
deliverables not estimated or tracked Early deliverables are late*
project plan, expected to guide
contractor activities, is due in July 2003, 2 and will be over 1 year late
1 Expenditure data have been updated to reflect the most recent available
data; the original data reported in the briefing were as of March 31,
2003. 2 The estimated completion date for the project plan has been
updated to reflect NSF*s most current estimate; the estimated completion
date reported in the briefing was June 30, 2003.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 13
9
Contract Funding NSF*s Actual and Planned Expenditures, as of May 31, 2003
a
$1. 901
1.451 $ .450
Actual expenditures
$12.800 $14.775 b Total Current and
planned expenditures Original estimates
4.900 3.800 2005 4.500 4.500 2004
2.950 6.000 2003 $ .450 $ .475 2002
Expenditures (dollars in millions) Fiscal year
a Expenditure data have been updated to reflect the most recent available
data; the original data reported in the briefing were as of March 31,
2003. b Original amount planned was $14. 8 million.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 14
10
Contract Funding Contract Expenditures by Major Category, as of May 31,
2003 a
Business processes $753, 138 Human capital 660, 753 Information technology
487,590 Total $1, 901, 481
NSF expects human capital will become the largest category of
expenditure over the life of the contract.
26% 35% 39%
a Expenditure data have been updated to reflect the most recent available
data; the original data reported in the briefing were as of March 31,
2003.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 15
11
Contract Funding
Source of Contract Funds FY 2 002:
The Advisory and Assistance Services object class within the Salaries
and Expense Appropriation account 1
Administrative Cost Recoveries* fees received from other federal
agencies for activities administered for those agencies, such as making
science awards
According to NSF officials, these expenditures directly reduced the
amount of discretionary spending that could have been spent on IT
enhancements
According to NSF officials, however, these expenditures did not reduce
the amount of annual appropriations originally planned for IT spending
1 Initially, $1 million was obligated in fiscal year 2002, from the
Research and Related Activities account but was subsequently de-
obligated.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 16
12
Contract Funding
Source of Contract Funds (continued) FY 2003: NSF plans to fund the
contract from the Advisory and
Assistance Services object class* not from Administrative Cost Recoveries.
According to the Director of Information Systems, the business analysis
project is a net benefit to IT because a substantial amount of the
contract funds are being spent on enterprise architecture and IT planning.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 17
13
Contract Funding
Status of Contract Deliverables NSF did not initially estimate, and does
not track, the
costs of individual deliverables. NSF is still developing dates for
deliverables, but the
current plan reflects some delays of early deliverables, including the
project plan.
NSF does not expect early delays to delay contract completion.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 18
14
Contract Funding
Status of Contract Deliverables (continued) According to senior
officials, delays occurred because
FY 2002 - NSF was limited to spending $500,000 due to annual
reprogramming limitations FY 2003 - under continuing resolutions, NSF
could only
fund the contract at the FY 2002 rate*$ 475,000 per quarter
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 19
15
Contract Funding * Status of Contract Deliverables (cont.) Early
Deliverables Delayed
9/ 30/ 03 FY03 Q4 4/ 1/ 03 4/ 1/ 03 FY03 Q2 First draft TBD FY03 Q4 1/ 103
1/ 1/ 03 FY03 Q2 First draft
TBD FY04 Q4 10/ 1/ 03 FY04 Q1 Refinement TBD FY05 Q3 7/ 1/ 03 FY03 Q4
Resource allocation b
TBD FY05 Q3 7/ 1/ 03 FY03 Q4 Performance assessment b TBD FY05 Q3 10/ 1/
03 FY03 Q1 Award management and oversight b TBD FY05 Q3 10/ 1/ 03 FY03 Q1
Merit review b
9/ 30/ 02 9/ 30/ 02 FY02 Q4 7/ 1/ 02 7/ 1/ 02 FY02 Q3 Initial review of
workforce 9/ 30/ 03 FY03 Q1 7/ 02 7/ 02 FY02 Q3 Initial assessment
Actual Current Estimate Original Estimate Actual Current Estimate Original
Estimate
TBD FY05 Q4 4/ 1/ 05 FY05 Q3 Report Final report TBD FY05 Q3 10/ 1/ 04
FY05 Q1 Refinement TBD FY04 Q4 10/ 1/ 03 FY04 Q1 Refinement IT and
enterprise architecture plan
TBD FY05 Q3 10/ 1/ 04 FY05 Q1 Refinement Human capital management plan
TBD FY05 Q3 7/ 1/ 04 FY04 Q4 Knowledge management Business analysis plans
for core business processes 9/ 30/ 03 FY03 Q1 7/ 1/ 02 7/ 1/ 02 FY02 Q3
Complete documentation Current environment
5/ 31/ 03 FY03 Q1 1/ 03 7/ 02 FY02 Q3 Project web page Business analysis
assessment
7/ 15/ 03 a FY02 Q3 6/ 26/ 02 6/ 26/ 02 FY02 Q3 Plan Project plan
Completion date Start date Contract deliverables Outputs
Note: Shaded areas highlight actual or anticipated delays in the start and
completion dates of contract deliverables. a The estimated completion date
for the project plan has been updated to reflect NSF*s most current
estimate; the estimated completion date
reported in the briefing was June 30, 2003. b These deliverables are
planned to have multiple revisions over the 3- year period of the
contract.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 20
16
Management Issues
Summary Key management issues identified by audit and
oversight bodies are to be assessed by the contractor to determine the
final scope of work for each issue.
Until the project plan is completed, however, it is unclear how and the
extent to which these issues will be addressed.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 21
17
Management Issues
Issues Identified by Oversight Bodies Management issues are to be
addressed within the scope of the contract.
Budget performance Contracting out activities Project and award management
Financial management Information technology
Human capital OIG GAO OMB No Yes Management issues Included in scope
of the contract? Issues cited by
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 22
18
Management Issues
Issues to Be Addressed in Contract One or more management issue is to be
addressed by each deliverable.
Project and award management
Business process analysis Current environment Business process
assessment Project plan Contract deliverables
Management issues
Contracting out activities Financial
management a Budget performance
Information technology Human
capital
Human capital management plan IT and enterprise architecture plan
a The scope of the contract*s survey work includes an assessment of
financial management related issues. However, until that assessment is
done and a project plan is completed, the extent to which those issues
will be included in the contract deliverables is unknown.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 23
19
Management Issues
Specific Management Challenges The majority of specific management
challenges identified by audit and oversight
bodies are to be included within the scope of the contract. Project and
award management
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 24
20
Contract Oversight and Management Summary Structure is in place to
oversee and manage the contract. NSF contract management has kept senior
management, the National
Science Board, and the NSF OIG apprised of contract progress and plans.
Initial contract documents anticipate that the contract will result in
recommendations and implementation plans.
NSF requested $1 million in the FY 2004 budget to implement human
capital recommendations anticipated from the contractor and will request
additional appropriations, as necessary, to implement any recommendations
identified in the future.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 25
21
Contract Oversight and Management
Business Analysis Plan Contract Management
BAH Business Analysis Plan
Contractor Project Manager BAH
Quality Assurance Review Board
National Science Board*s Audit & Oversight
Committee Business &
Operations Advisory Committee Contracting Officer's Technical
Representative
(COTR) Business Analysis Plan Contract Steering Committee
Senior Management Office of Inspector
General
Supervisory Advisory Monitoring Legend:
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 26
22
Contract Oversight and Management
NSF Contract Management BAH Business Analysis Plan
Contractor Project Manager
BAH Quality Assurance Review Board
National Science Board*s Audit & Oversight Committee Business &
Operations Advisory Committee
Contracting Officer*s Technical Representative
Has day- to- day responsibility for managing the contract Chairs the
steering committee Briefs senior management and committees
Business Analysis Plan Contract Steering Committee
COTR, chair Senior agency management and non- management staff
with expertise in all program areas covered by the contract Senior
Management
Office of Inspector General
Supervisory Advisory Monitoring Legend:
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 27
23
Contract Oversight and Management
NSF Contract Oversight * Senior Management National Science Board*s Audit
& Oversight
Committee Business &
Operations Advisory Committee
Senior Management
Heads of most research directorates, and staff offices (e. g. General
Counsel) briefed Senior management team briefed twice Deputy Director/
Chief Operating
Officer briefed Director present at briefings to the
National Science Board*s Audit and Oversight Committee
BAH Business Analysis Plan Contractor Project Manager BAH Quality
Assurance
Review Board Contracting
Officer*s Technical Representative Office of
Inspector General
Business Analysis Plan Contract
Steering Committee
Supervisory Advisory Monitoring Legend:
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 28
24
Contract Oversight and Management
NSF Contract Oversight * Committees
Business & Operations Advisory Committee External members from
universities, foundations, businesses, etc.
Advises Directors of Budget, Finance, and Award Management, and
Information and Resource Management on oversight and other issues to
improve business
processes Briefed twice * 10/ 02 and 4/ 03 Briefings planned every 6
months
National Science Board*s Audit and Oversight Committee
Members of the National Science Board Standing committee
stays apprised of audit and oversight issues and makes recommendations to
the board
Briefed 3 times * 3/ 02, 8/ 02, & 3/ 03 Senior Management
BAH Business Analysis Plan Contractor Project Manager
BAH Quality Assurance Review Board Contracting
Officer*s Technical Representative Office of
Inspector General
Business Analysis Plan Contract
Steering Committee
Supervisory Advisory Monitoring Legend:
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 29
25
Contract Oversight and Management
NSF Contract Oversight * NSF Inspector General
NSF Office of Inspector General
Received information about the scope and methodology of the business
analysis plan upon request Received briefing in October 2002
Senior Management BAH Business Analysis Plan
Contractor Project Manager
BAH Quality Assurance Review Board Contracting
Officer*s Technical Representative
Business Analysis Plan Contract
Steering Committee
National Science Board*s Audit & Oversight
Committee Business &
Operations Advisory Committee
Supervisory Advisory Monitoring Legend:
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 30
26
Contract Oversight and Management
Booz- Allen- Hamilton Business Analysis
Plan Contract Steering Committee
National Science Board*s Audit & Oversight Committee Business &
Operations Advisory Committee
Booz- Allen- Hamilton Business Analysis Plan Contractor Project Manager
Reports to the NSF COTR Responsible for integrating all major areas of
contract * human capital, business process, and IT
Provides monthly progress reports: work accomplished, anticipated
issues, planned work, and deliverable status Briefs Steering Committee
every 6 weeks Holds weekly status meetings with COTR Talks with COTR
daily Meets with human capital and IT team weekly Briefsother senior
management as requested
Senior Management
Booz- Allen- Hamilton Quality Assurance Review Board
Staffed with executive personnel with expertise in contract areas
Ensures the right technical skills and
competencies are available for the contract Conducts analysis and
provides briefings
to NSF as needed Office of Inspector
General Contracting
Officer*s Technical Representative
Supervisory Advisory Monitoring Legend:
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 31
27
Contract Oversight and Management
Implementation of Contractor Recommendations NSF requested $1 million in
FY 2004 budget to implement human capital recommendations anticipated from
the contractor. NSF plans to request additional appropriations, as
necessary, to
implement any recommendations identified in the future.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 32
28
Related Studies at NSF
Summary Two other ongoing studies concern NSF*s management challenges:
A National Academy of Public Administration (NAPA) study is addressing
the agency*s organizational, programmatic, and personnel structures, and
A National Academy of Sciences (NAS) study is addressing the agency*s
management of the large facilities program. NSF has taken steps to
ensure that both of these studies are
coordinated with the contract for the business analysis plan.
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 33
29
Related Studies at NSF
NAPA Congressionally mandated to study NSF*s organizational,
programmatic, and personnel structures
NAPA awarded $1 million contract Contract awarded on March 14, 2003;
final report due April
2004
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 34
30
Related Studies at NSF
NAS Congressionally mandated to study NSF*s management of large- scale
construction projects and the priority- setting
process for selecting projects to be funded NAS awarded $600, 000 grant
Awarded on January 29, 2003; final report due April
2004
Enclosure
GAO- 03- 832R NSF Business Analysis Plan Contract Page 35
31
Related Studies at NSF
Coordination with NAPA and NAS To address concerns over potential
overlap of work on the NAPA and Business Analysis Plan contracts:
NSF*s statement- of- work for the NAPA contract states that it is vital
that the contractor coordinate its work with the NSF business analysis
contract effort;
The Business and Operations Advisory Committee urged NAPA and BAH to
coordinate closely; and
Booz- Allen- Hamilton and NAPA plan to hold regular monthly meetings
over the life of the NAPA contract to coordinate activities.
To address any potential for overlap of work on the NAS grant, the COTR
for the business analysis contract plans to coordinate with NAS grant
efforts. Large facility management has been identified as a management
challenge for NSF and is to be included in the scope of the business
analysis plan.
(360302)
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