Emergency Response to Hurricanes Katrina and Rita: Audit of Program Support Center's Award Process for a Contract With Northrop Grumman Space & Mission Systems Corporation

EXECUTIVE SUMMARY:

The report is one of several reviews of procurements by PSC and other components of the Department in response to Hurricanes Katrina and Rita in 2005.

The objective of the audit was to determine whether PSC complied with Federal Acquisition Regulation (FAR) and Health and Human Services Acquisition Regulation requirements during the award process involving Northrop Grumman Space & Mission Systems Corporation.  PSC generally complied with the requirements.  However, PSC did not execute a written determination and findings that no contract type other than a time-and-materials contract was suitable, as required by the FAR.

OIG recommended that PSC execute a written determination and findings when awarding time-and-materials contracts.  PSC agreed with the recommendation.