Escolar Documentos
Profissional Documentos
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Table of Contents
(U) EXECUTIVE SUMMARY ......................................................................................... 1
(U) BACKGROUND ....................................................................................... ................. 4
(U) Independent Contractors ................................................................................ 4 .
(U) Independent Contractors Are Used Extensively Throughout the CIA ........ 4
(U} AUDIT RESULTS AND RECOMMENDATIONS ...................................................... 7
(b)(3) CIAAct
U//POUO) Contracting Practices Within
~Violate CIA Regulation ...........................,. ..................................... 7
(U) Some Independent Contractors Are Performing Inherently
.
Governmental Functions ..................................................................................... 10
U/lfOl:JG} Independent Contractors Within l
(b)(3) CIAAct
re Interviewing Applicants ............................................... 10
(U//FOl:JQ) Some Independent Contractors Utilized by the
CounterTerrorism Center Are Performing a Supervisory Role .................. 12
(U) Price Analysis Is Not Adequately Documented .......................................... 1J
_ _
(b)(3) CIAAct
~
Do Not Provide Services on a Fee-for- asl< Basas ............................................. 14
(GHNF} Independent Contractors in
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(U) Report of Audit
(U) The Use of Independent Contractors
(U) EXECUTIVE SUMMARY
(b)(3) CIMct
(8~W) Independent contractors (ICs) are self-employed individuals with whom the
CIA contracts to a[ uirj specific services. ICs are not employees of the CIA. ln FY 2010,
the CIA executed
new IC contracts and task orders valued at
to obtain
(b)( 1)
a wide variety of services i~cluding worldwide operational assistance
(b)(3) NatSee_Act
]translators, protective security services, CIA Universll-:-ty-u'l
.,s-.,.-c
tru --,-to
_ r_s_, a- n-1
research services. ICs are used hv all Directorates. As of31 July 201 1, the CTA utilized
the services o~
~Cs. (b)(3) CIAAct
(Chq.W) The CIA relies heavily on ICs to accomplish important facets of its mission
and should strive to protect the overall integrity of the IC program, while at the same time
procuring the appropriate services at a fair and reasonable price. During the audit, we
identified instances of noncompliance with federal laws and CIA regulation: (1) there
is the appearance of an emp_lQ~_plov..ee relationshill..between the CI~ and National
(b)(3) CIAAct
lCs, and (2) ICs
Clandestine Service <NCS)i
within tb
(b)(3} CIAAct
}are performi~g inherently_ __,
ovemmental functions when they interview prospective employees.
(b)( 1)
(b)(3} CIMct
(b)(3) NatSecAct
(b}(5)
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~'fNf') CIA components should carefully scrutinize expenditures and ensure the
CIA is paying the best possible price for IC services. We found that contracting officers
and procurement oflicers 1 are not adequately documenting the price analysis and
negotiations used to substantiate the prices paid for IC services. Without evidentiary
documentation that demonstrates cost reasonableness, it is not known whether_the CIA
is a ing more for IC services then it needs to a .
(b)( 1)
(b)(3) CIAAct
(b)(3) NatSecAct
(b)(5)
(U//FOUO) Many ICs, most of whom work for the NCS, begin performance of
services without a valid contract or task order. These actions, referred to as unauthorized
commitments, are non-binding agreements made by representatives without the authority
to enter into contracts on behalf of the US Government. The CIA is under no obligation
to fulfill the terms of an unauthorized commitment and has discretion whether or not to
ratify the unauthorized commitment with the contractor.
(b)(S)
]
[
that last-minute requirements chal1enges with
implementing the new acquis ition system,C (b)(3) CIAAct:-:J and a contract staff that
struggles to keep u with the volume of IC task orders contribute to res work in without
a valid contract.
(b)(3) CIAAct
(b){S)
(UI/~) A procurement officer is an officer with the authority to enter into and administer procurement
actions for commercial type products, services, and JCs. Generally, a procurement officer will handle commercial
purchases, IC contracts, and other finn-fixed-price type contracts, but can bandle other types of contracts if so
authorized. The main difference between a procurement officer and a contracting officer is the level of education
ui~
re:.-.d.,_
. ------and training~re~
1
<_b_H3_)_c_IAA
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c_
t ____________________
L l_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
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(U) BACKGROUND
(U) Independent Contractors
(b)(3) CIAAct
(b)(3) CJAAct
(b)(3) CIAAct
~ "Other" category shown in Figure 1 includes the following orocucement entities bv directOiate: Nafional
Clandestine SerVice: 0 lobal Deployment Center, jl ----.:;::-->"--:---,;::-;;;;--:;o=o-;-.,....-;-----::= - -;;-;;
(b)(3)
CIAAct
(b)( 1)
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'tet Figure 1
(U) Nw IC Contracts aifd Task':.orden: by Procurement En
- FY 2010
(b)( 1)
(b)(3) CIAAct
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(b)(3) CIAAct
(b)(3) CIAAct
(b)(3) CIAAct
.
~on
(b }( 1)
(b}(3) CIAAct
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s U//.Petfe) Reliable historical information on the number of ICs is not available due to limitations in the
eportin functionality and the way IC contracts and task orders were recorded and modified in the
ystem.
eplacedL
""]in October 20 I 0.
(b)(3) CIAAct
(b)(3} CIAAct
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(b)(3)
CIAAct
(b)(3}Na~
(b)(3) CIAAct
(b )(3)
CIAAct
(b)(1)
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i&J Figure 2
(U)
Petc~nt
(b)(1)
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!(U) AUDIT RESULTS AND RECOMMENDATIONS
lUJIIouo
Contractin
[_
(C/J'N1'~
Practices Within
Violate CIA Regu lation
(b)(3) CIMct
(b)( 3 ) CIMc
(b)(3) CIMct
(b)(3) CIAAct
L
;= ==
==----==-----(b)(3) CIAAct
(U) An ICOA allows for the issuance of fixed-priced services task orders during a tixed per1od not exceedmg
three years. The bilateral base agreement will include all terms and condit ions for the specified services. All services to be furnished under the lCOA will be issued as task orders. All task orders are subject to the tenns and
c.onditii>DS oftbtiCOA._
(b)(1)
(b)(3) CIAAct
(b)(3) NatSecAct
(b)(S)
(U//POUO) A Business Review is a contract document that contains the specifics of a procurement including a
checklist of minimally required documentation/certifications per the Federal Acquisition Regulation and the CIA
Contracting Manual; points of contact; a description of the procurement, market research, source justification, and
justifications for contract type and contract price; and any other special issues.
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(b)( 1)
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(/IUF) We found that, in most instances,f ---~C 'contracts are not established
for a soecific purpose and fee as required by AR 40-8. For example, task orders with
(b)( 3 ) CIAAct
do not contain specific tasks to be performed by the IC. Instead, almost all of
the task orders we reviewed merely stated tfbo)t(3("')
ired to "provide operational
11
c Requirement Fonn that NCS
support'' to a specific station or base. Th ~
area divisions, components, and centers send to
to request the services of an
(b)( 3 ) CIAAct
IC provides only slightly more information than the task order regarding how the NCS
intends to use the IC. Based on discu si
with the Chief,'
(b)(3) CIAAct
land the COTR for [_
NCS ofticers provide specific direction to b 3 CIAAct
the ICs when they arrive at the station or base. The failure to explicitly articulate in the ( )( )
contract the tasks to be performed by the ICs used by[
contributes to the
appearance of an employer-employee relationship.
(b)(3) CIAAct
Jcs
ciAA. t-il
I__
( )( )
C IAAct~ Additiona~"lyj
(b)(3) CIAAct
]the ~pe of contract. used for
J Cs, labor-hour, 1s the least preferred method of contractmg for IC servtces and
provides no positive incentive to the TC for labor efficiency. Labor-hour contracts
provide for acquiring services on the basis of labor-hours at a specified hourly rate.
(b)(3) CIAAct
Jrecommends firm-fixed-price completion contracts because they bel
mat tam_an "ann' -lenrrth reJatio.nsbio" betwe.en..t.heJ:IA_and the~C..
1_
(b)(3) CIAAct
(b)(5)
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'
employer-employee relationship, we believe that the nine factors, together with
the
absence of specific tasks to be performed in the e.ontr,t, the inability to use a firm1
(b)(3} CIAAct
fixed-price contract, and the fact that almost all1
Cs are retired case officers
performing functions similar to the duties they performed prior to retirement, create the
appearance that these ICs are employees.
3
(emW) Furthermore, since the formation ofl (b)( ) CIAAct l two reports were
issued that expressed concerns that the use of lCs b~
J o augment the staff
workforce at stations and bases could be problematic and result in noncompliance with
CTA regulations. A previous Office of Inspector General audit report12 pointed out the
vulnerabilities for the CIA in using ICs contrary to CIA regulations. A 2001 special
review13 performed by a CIA officer at the request of the then Executive Director resulted
in a report which provided that, rhe Agency needs to face up to the fact that its practices
regarding the use of independent contractors are sometimes incompatible with its
th=e'----,
policies. There are clusters of ICs that fail to meet the fundamental definition..:.:in:.:...::
relev_ant Agency reJilllalLon. AR 40-d
(b)(3) CIAAct
(b)(5)
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(b)(3) CIAAct
(b)(3) NatSecAct
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12
JJ
(U) Report ofAudit: Contracting With Independent Contractors, 1999-0039-AS, dated 27 July 200 I.
(U) Review of Independent Contractors, A Report for the Executive Director; December 200 l.
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(U) Some Independent Contractors Are
Performing ln~erently Governmental Functions
(b)(3} CIAAct
(b)(3} CIAAct
D es
L--14
- - - --
- - - - - - - -- (b)(S)- - - - - --
---'
(U) Public L. 105-2?0 (Oct. 19, 1998), 112 Stat. 2382,31 U.S.C. 501 note.
15
(U) In September 20 II, after the completion of our fieldwork, the Office of Management and Budget, Office
of Federal Procurement Policy published Office of Federal Procurement Policy (OFPP) Policy Letter 11-01,
Pe~(ormance ofInherently Governmental and Critical Functions. This Policy Letter, effective October 12, 20 II,
provides Executive Departments and agencies guidance on managing the perfonnance of inherently governmental
and critical functions. The policy letter is intended to implement direction in the Presidential Memorandum on
Government Contracting, dated 4 March 2009, that requires OMB to clarify when governmental outsourcing for
services is and is not appropriate.
16
(Uifti6t16') The purpose of this program is to hire and train entry level Operations Officers, Collection
Management Officers, Staff Operations Officers, Special Operations and Program Officers, Collection Support
Officers, and Program Support Officers in support of the CIA's mission.
(UI/~) CIA Employee Bulletin 0012-07, Work That May Not Be Peiformed By Contractors, dat~d
2 October 2007. Exhibit C contains the full text ofthe bulletin. In discussions with OGC officials during the
audit, they indicated that the guidance remains valid.
17
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(b)(3) CIAAct
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(b)(5)
(b)(3) CIAAct
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(Sh't~F) SomeO
(b)(3) CIAAct
' - - - - - - - - - - - - - - - - - - - - - - -(b}(3) NatSecAct
(U/~) The HBT (Headquarters Based Trainee) program prepares trainees to serve in the Staff Operations
Officer (SOO), Collection Management Officer - Specialized (CMO-S), and the Specialized Skills Officer('~(.!)so..npositions.
22
(b}{3) CIAAct
(b )(3) NatSecAct
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- -- -
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(Sffl<W) Almost all Business Reviews that we assessed stated.that the contract prices
were fair and reasonable; however, the contracting officers or procurement officers did
not provide documentation to supporl the rationale behind their assertions of price
(b)(1)
reasonableness
]Jc contracts or tasks orders we reviewed. !~
(b)(3} CIAAct
id
(b)(3) NatSecAct
evidence of negotiations with the IC. In addition, we reviewed! ] contracts for lCs
who provide course instruction for CIA University. The Business Reviews for these ICs
stated that the prices paid were based on previous prices paid. However, the previous
contract files do not include any documentation to support the determination that the _
rices paid in those contracts were fair and reasopable. l
(b)(3) CIAAct
]
~l~ct
_
(b)(S)
(b)(3) CIAAct
We were not able to assess the adequacy of the price analysis fo~
~
contracts in our audi t samo\e because Business Reviews tor the entire cadre of1 (b')~
( ) CIAAct
IC
(b)(3) CIAAct
Ihave not been prepared.
(U/IPOUO) Contracting officers and procurement officers should ensure that all prices
paid to TCs are fair and reasonable. The Business Review should document how the
contracting officer determined the contract price. Without documentation of the analysis
there is no assurance that the resulting prices are, in fact, fair and reasonable.
----------------~
(b)(3) CIAAct
(b)(3) NatSecAct
{b)( 1)
{b)(3) CIAAct
{b)(3) NatSecAct
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(b)(3) CIAAct
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(b)( 1)
(b)(3) CIAAct
(b){1)
(b)(3) CIAAct
(b)(3) NatSecAct
(b)(3) CIAAct
(b)( ) Na~'-s_e_c_
A_c_t_____..JI According to the Chief,[
(b)( 1)
(b)(3) CIAAct
(b){3) NatSecAct
The Chieq
~__ ___J
.....=============--- - - _ _ _ _ _ _ _ _ _(b)(1 )_ __
(b)(3) CIAAct
(b)(3) NatSecAct
25
(U) Under FAR, Subparts 16.60 I and I6.602, a labor-hour contract is a variation of the time-and-materials
contract, differing only in that materials are not supplied by the contractor. A time-and-materials contract provides
no positive profit incentive to the contractor for cost control or labor efficiency. Therefore, appropriate government
surVeillance of contractor performance is required to give reasonable assurance that efficient methods and effective
cost controls are being used.
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historical data to accurately estimate the extent, duration, and anticipated costs
of IC{
=:]with a reasonable degree of confidence. Once
standardized fees are determined, each IC contract should be converted to a fee-for-task
contract. Convertin~ contracts to fee-for-task will reduce variability in the cost of
nd will also reduce the administrative burden that currently
exists for budget officers, acquisition officers, and COTRs who have to estimate, track,
CIAActand verifY the nu~ber of hours worked by each IC across several rate categories.
~~~g~
(b)(3) NatSecAct
(U) Office of Management and Budget Memorandum, Improving
Government Acquisition, M-09-25, July 29, 2009
(b)(1)
(b)(3) CIAAct
(b)(3) NatSecAct
(U//FOOO) ICs are initiating the perfonnance of services without a valid contract
or task order. These actions, referred to as unauthorized commitments, are non-binding
agreements made by representatives without the authority to enter into contracts on
behalf of the US Government. The CIA is under no obligation to fulfill the terms of an
unauthorized commitment and has discretion whether or not toratify the unauthorized
commitment with the contractor.
16
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(U//FOUO) AR 40-4 (d), Contracting Officer Authorities and Responsibilities,
(b)(3) CIAAct
(b)(3) CIAAct
(CI~W]
ICs began working without a valid contract or task order because the
components requesting the ICs failed to approve the contract requests and funding, or the
contracting officers or procurement officers failed to award the contracts or task orders
before the ICs started work. Inc_
__=jNCS contracts or task orders, the component
requesting IC services failed to a rove the contract requirement and certify the.------.
avai labili of funds via b 3 CIAAct re uest form before the IC be an work. 28
(b)(3) CIAAct
(b)(5)
(b)(3) CIAAct
fS/H'Wj IL
=.__]Ncs contracts or task orders, the contracting officers and
procurement officers failed to award a contract or task order before the IC began
perfonning services. Contracting officers and procurement officers were delayed in
awarding contracts because the components did not give them sufficient time to award the
contracts or task orders or because the contracting officers and procurement officers were
working through a backlog of existing contract actions. 29 L (b)(3) CIAAct
(b)(3) CJMct
(b)(5)
'
26
(U) FAR SubPart 16.5, Indefinite Delivery Contracts, defines a \ask order contract as a contract for services that
does not procure or specify a finn quantity of services (other than a minimum or maximum quantity) and that
rrovides for the issuance of..Qrders for the perfonnancc of tasks during the period of the contract.
7
(U//ffit:f&)L
~ontracts were for components outside of the NCS. Details o~
pontracts are
contained in ExhibiLD
(b)(3) CIAAct- - - - - - - :
(b)(3) CIAAct
(b)(3) CIAAct
(U/II'Otte) tl[
~on tracts, the contracting officer had less than five days to prop~ award the
contract. Auditors noted that milestones have not been established for the minimum time NCS L (b )(3) C IMct
needs to process requests for contracts; we applied five days in the absence of speci fie guidance.
9
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r---
(b)(3) CIAAct
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(b)(S)
Jl (UI/~) The Acquisition Statistical Summary For the Period I October 2008 to 30 September 2009 and the
Acquisition Stati.~tical SummaiY..EPLLite.J!.e.riod I October 2009 to 30 September 2010. These reports compare
acquisition activities recorded.
] for previous and current-year acquisition activity both in tenns of
dollars and contract actions.
32
(U) FAR, Subpart 1.602-3, states that ratification authority is vested in the head of the contracting activity, unless
a higher )evel official is designated by the agency. The FA~ pennits the delegation of ratification authority in
accordance with agency procedures, but in no case shall the ratification authority be delegated below the level of
(b )( 3) C IAAct: - - - - - - - - - - - - - -- - -- 18
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services are properly approved, certifications of funds are obtained, and contracts and
task orders are approved before ICs perform services.
-----------------------------------------.
(b)(3) CIAAct
(b)(3) NatSecAct
(b)(5)
I.
(b)(3) CIAAct
(b)(3) NatSecAct
(b)( 5)
(U/IFOU~C(b)( 3 ) C IAAct
' -
when urgent circumstances require an IC to begin work before a written contract can be
signed. Even under such circumstance~._v..erhalauthorizations..alone do noL9ermit
components to direct lCs to start workl
(b)(3) CIAAct
_jthe
contracting officer or procurement officer shall ensure that all appropriate_doc_umentatLon
and/or approvals have been received, and a verbal authorization from th~
(b)(3) CIA.f-ct
Chief has been granted. Also, the component must (~""3n)vCPI;{A "
act requirement and
certify the availability of funds as well as obtain th b)(
ct Chief approval before
erbal authorizations need to
the IC can begin work!
(b)(3) CIAAct
be reduced to a written'tc contract wtt m t ee wor
ays of the issuance of the
verbal authorization to the IC. I
-----------,
(b)(3) CIAAct
(b)(5)
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(b}(3) CIMct
(b)(5)
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Exhibit A
(U) Objectives, Scope, and Methodology
(U) The objectives of this audit were to determine whether:
(U//FOUO) The audit topic and objectives were selected during the Office of
Inspector General's annual planning process. The audit is responsive to the Intelligence
Community-wide focus on the use of contractors as well as to the government-wide
focus on the use of high-risk contracts, such as labor-hour contracts.
(U//ffOUC) The scope of the audit included contracts for services of inde endent
contractors ICs initiated durin FY 20 I 0 as ca tured in the CIA'
(b)(3) CIAAct
excluding
no-fee contracts and contracts in support of other government agencies.
(gi~W)
(b)(3) CIAAct
(b)(3) CIAAct
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(b)( 1)
(b)(3) CIAAct
(b)(3) NatSecAct
(b)(3) CIAAct
ReviewedU
ontracts and task orders to determine whether:
The terms 'of the contract created the appearance of an
employer-employee relationship.
(b)(3) CIAAct
(U) We conducted this performance audit from December 2010 to June 2011 in
accordance with generally accepted government auditing standards. Those standards
require that we plan and perform the audit to obtain sufficient, appropriate evidence to
provide a reasonable basis for our findings and conclusions based on our audit objectives.
We believe that the evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.
(U) Comments on a draft of this report were provided by the Director of the National
Clandestine Service and the Procurement Executive and were considered in preparing the
final report.
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Exhibit B
(U) Sample of Independent Contractor Proposal Review
CLASSIFY ,\S"AP.PROPRlATE
Date;
Reque$ling:OITu:cr;
Component:
(10/08)
Rcoucst Number:
IHs t\gcncy Jloliey not to o:nler into an TC cqntrnct.lhnt would crc:ntc a11 C(Jiployer-cmploy~ rtbtioll,hip. "11ois form provlllc~
lho Conornctina OfficcJ's Tcchni,ca! R~res~ll"lli-e (CqTR>. lhcRcquating Officer, and the comP.oncnt t\pproving Ollicer
(Lc.thc ~pproverofthe f1mds) a me.vis to holpsumri1.iize :uid document a propOsed IC contrxt in lhe conoc.~1 of the f~ctors
11ia1 indiQIO ohc f11rmation of an cmployer..:mploycc rciationship. Tht purpoic of this form is to.preclude the 1\gc:m:y from
entcnng into an IC eon11"3ctlhot,lhrough lhe contDclterms, ercalc:& Ihe oppc3tancc of an cmploycr-cmplo~cc n:lationship.
(b)(3)
CIMct
If the ln1ern.11 Revenue Service or a coun were to determine that on t\gcncy. ICI~ actll411)' an :\g,-ncy etnplo)cc, IhOc Agency
c9uldf.1cc liabil ity lor lll.~cs ~nd .anpiOY.c~ b;cnclit C0515.that would have been withheld or paid had the individua.l bn.
eom:ctly cl:liJilied":L<. ;nl employee.
T11 help c:Mun: the Agency doe.\ not enter into an cmploycr..:mpiO)"CC rcl>tionship wllh an IC,.caeh proposc:d IC contract
must lie ev>huteci"againstlhe f:KlOilllisted below th>t'indicatc an cmpllJ)cr~mploycc relationship. No single faClor is
delcnnin>livc In an nsse.umenl nfwhetl>tr n worker t~ nn-IC or on erns1loyec..Not>11 fnctolllarc weighed cqll411y. nocn: ~rc:
no In IOJ;IIttumhcr of"'y~"nn,wcrsthat, when exceeded, "4UlOmalicallypuiS the proj.~cd IC contnctinto the rcotm of an
cmploycr:O..mployo:c rctationahip. '' 'Uetcnnil!nlion or.wo.rkcr'i .sll"ltus.must take into aecouilllhe overall rc:latioi\Shlp of the
indhidual and lhc Agcney.
1\ "yes~ answer means.that"p:>niwbr fctor indicates th~proposcd IC contract or its "aclminl$tration could lead towards the
en:ation.of an cmploycr-c:mploycc rclatioMhip with the IC. T11c more itans that arc n.~wcrcd "yes; the more likely It would
be th,.lthc individual would be pcrecivcd 10 be on empiO)'cc, mthtr donn an IC. In rotno.cnses, 8Uch JS when lhe IO.<k 11111.~1 be
accomplishcd"Onlhc Agency DMa~crvicu Network (!\I)Sl'{) or.nl an.t\gcncy facility, yes onswcrs will be unavoidable.
Concise cspl:anations or rutionilles supporting '"y.:s" :sn:~\v~ruhould he recorde~ on the last page ofthi.< form.
'lllc Requc:nin.g 0ffit<:1" is rcquin:d lo complete :utd submit this form to.thc Coolracting 0fficct (CO) for all proposed JC
~ctions on
or prior to ioiti.1tion of the pnxun:mcnlfundina document. The ReqU<iting Offi~r.the Approving0fficcr, and
the G01"R should n:view it ~nd discuss whether lhc t:..~k, or the m>nncrin whi.ch il iJ 10 he provided, could 11.-.ppropn>lely
modllled.to.clintlnatc ~yes ~nswcrs. The component's CO will serve o.s on advis~ in this proce~s.
me Rcctuc:sting 0fficcr,thceomponcnl t\pp\"o'"ing Ofliccr; ~nd the CO"rf!. shall sign the final version of this form >nd
prc,Ciu"illO the CO. The C.O requires :alirull hord-c'opy ycrsion ofthis fonn piior 10 ll"lking any action on the IC procurcmont
request. (In oclclition, soO-copy must" be tlt~cltcd 10 lhc c : Jn:qucsl ifthc CO delctmincs lhc n:quin:mcn.t can be
PfOIICJ"!)'Iillcd throughusc ofan IC.) Tlu: CO will mlkc > dctcrmin:uion ofwhcthcrthc propos~!. iflillcd through.an IC
contract, -:ould lead 10 tloc creation of an employer-employee n:lotion.ship with Ihe individ~UI. If the CO dclcnninu th>l the
requirement oan be mel r ropcf!y through on IC contract, lhe s!gncd hard-copy ~r l~s runn will be n:talnc!f in Ihe contract
rile. If the CO dct~rmi!I<S thotlhc pruP,Os~d IC conlt:tel would crc:alc o.n crnj!loyct<mployce n:lationshlp, the kcquestlne
Officer will be odviscd 10 seck the >dvicc of.thc llumon Rcsourcc Recruitment Center 10 cngagc the individuol1111der tr:nns
other !han as on IC {e.g. conlr>Ct employee, rehin:d annuil3nl, etc.). The cos 1\cqui~ition Center Chief will be ll>e orbiter
of any disagreement rc:gardinslhc CO's dctcnnin:ilion.
Regardless of.lhc terms-of aniC eontroCI, impru110r eontracl odmini"rntion m~y lc>d to the crc:otio!' of >n employeremploy" n:lalionship with an IC. COTR.s :.re cncour.>gcd to"rc,;cw a copy <>flhis.fonn periodically duoif18 administration of
lho.elmlrJCIIO hell).ensure tHat ~n employer-employee rel3tioMhip is not cre3tcd.lnadvcncnlly. CO"fR.s who h~vc ~ny
questioN regarding proper odminislf3lion of their IC <Onltll15 should consult with thdr rcspcclivo COs.
Rcquc.<tins Oltiur:
Sign.ttw-e:
Dale:
ApptOVing Olliccr:
Sign3111re;
Done:
CO'ffi:
Signohlie:
Pate:
Contra.,lina Officer:
Sig1lilture:
Dote:
(b)(3) CIAAct
(U) Source.
Exhibit B is UNCLASSIFIED
SECRET//NOFORN
Approved for Release: 2016/03/31 C06491 273
(b)(3) CIAAct
C06 49127 3
8ECRETHNOfiiORN
CMSSlFY AS AP.PROPRJA:rE._ _ __ __ _
Amwer
F.1ctor
E.'\J!Innatory Comments
me
'
3, WiU tho Agoncy directly
(b)(3) ClMet
(b)(3) NatSecAct
I
4. Will the IC be able to
provide the 5CIVicc without a
2
CLASSIFY AS APPROPRTAT.E _ __ _ __ _
SECRETitNOFORN
Approved for Release: 2016/03/31 C06491273
C06 49 1273
SECftET1tNOFOFtN
CLASSIP.Y AS APPROPRIATE _ _ _ _ _ __
F~~;tor
F..~pl3nalory
Arunver
GommcmtS
Y.cs, N.o,
N/A
'
1. Willthe.IC be paid on an
hourly, d~ily, or-weekly rate?
(b)(3) C IAAct
II. Will lhc IC receive
work
111r: manner in wfuch :m.tC reeavcs work :~Sscgnmcnrs 1S one of 1hc f.1c1or.;
rhnl inllic.alc an employer-employee rcblion~hip.
-J
CJ~.ASSIFY
AS APP!,tOPRJA:rE____ __ __
Sf!CftET1/NOFORN
Approved for Release: 2016/03/31 C06491273
C06491273
SCRETNNOFORN
F:aclor
Answer
No,
N/A
Yc~.
cmplo):Cf"CCltpluy~>~:.rclaiionship.
ICs, as.b~in..ss pe_oplc, have' the latitude lo provide their senricc:s to olhe~
client! (except for is., ucs relali~S. tO liCCWity or contJiel~ ('lfintcrut ),
Ill. Will.lhcurrangcm:.;nt
preclude the>IC from making"
profi 1or st.i.ffcring a.loss fir;lm
,providing. ~cmccs (oiher than
the ha!ie i~i-vicc fcc)?
has
'
~L1\SSIFY
AS APPROPRIATE_ __ _ __ _
SEGRETNNOFORN
Approved for Release: 2016/03/31 C06491273
C06 491273
SECRETHNOFORN
Exhibit C
(U) Employee
EMPLOYEE
Bull~tin
0012-07
(~)BULLETIN~
3. '( v/;,~ ttJhb.'i s not a: Contlfec.!lor'?' Th':i:s .'Bu;rl;etdn .tloes .... no.t
apply to CIA caiitrac~ 'Eim~.loyees:-.. For purposes of. .the fede -r.al
!Ja'\oJ discussed in 'this Sul'J.:e'tin, 8 C61itr'act .emp.l oy;ee :i s .an
einpioYee of t'he <:>~ A : wlio' i; apeo'i:nted ..fur: :1-'irrt'it:ed tezi..m,.
during wh~ch he !!IBY=::P et:fQ:t:'Rl :~h~~ :!:!:~me fl:.lneti'0ns-aJ?.- a .~I:A. ;s:t.aff
employee.. Thi:s Bih-l'etin, wses:tJ:l:e; term'~ell)p i'~ye~e.'' .to refer .to
ciA. sta.ff and..cont t::!=kt:t'.-;emplq.yees;.
.:a
Exhibit C is UNCLASSIFIED//AIW&1
SECRETHNOFORN
Approved for Release: 2016/03/31 C06491273
C06491273
SEGRETHNOFORN
SECRETIINOFORN
Approved for Release: 2016/03/31 C06491273
Do?
(b)(3) CIAAct
C06491273
SEGAETNNOFORN
(b)(3) CIAAct
SECRET#NOFORN
Approved for Release: 2016/03/31 C06491273
C064 9 1273
SECRETHNOFORN
(b)(3) CIAAct
'!
S&CRETHNOFORN
Approved for Release: 2016/03/31 C06491273
C06491273
SECRETfi'NOFORN
Exh'ibit D
(U) List of Sample Contracts With
Unauthorized Commitments
CS#NFt National Clandestine Service fNCS) Contracts
(b)( 1)
(b)(3) CIAAct
(b)(3) NatSecAct
____
__ _
(U) Source: Auditor-developed from data inL __ _ _ _ _ _ _ _ _
(b)(3)
CIAAct
SECRFiTUNOFORN
Approved for Release:
20~6/03/31
C06491273
C06491273
5EGRET/fNOFORIQ
(b)( 1)
(b)(3) CIAAct
(b)(3) NatSecAct
SECRETUNOfORN
Approved for Release: 2016/03/31 C06491273
C06491 2 73
SECRET11NOFORN
/
(b)(1)
(b)(3) CIAAct
(b)(3) NatSecAct
Procurement Unit
Price
Independent
Contractor
StartWo~
(b)( 1)
(b)(3) CIAAct
(b)(3) NatSecAct
Total Non-~
N=
CS
=----------l~(b)( 1 )
1
Contracts:
(b)(3) C IAAc~
(b)(3) NatSecAct
'
Grand Tot"f'-- - - -
Contracts:
(b)( 1)
(b)(3) CIAAct
' - - - - - -(b)(3) NatSecAct- - - - '
SECRETHNOFORN
Approved for Release: 2016/03/31 C06491273
Date of
Contract
Award
Days
Late
C0649 127 3
SEGRETrNOFORN
Exhibit E
(U) Recommendations
(b)(3) CIAAct
----------..
(b)(3) NatSecAct
(b)(S)
(b)(3) CIAAct
(b)(3) NatSecAct
(b)(3) CIAAct
(b)(3) NatSecAct
(b)( 1)
(b)(3) ClAAct
(b)(3) NatSecAct
(b)( 1)
(b)(3) CIAAct
(b)(3) NatSecAct
Exhibit E is
CQNFIBENTblcUIN6PO~N
SEGRETJINOFORN
Approved for Release: 2016/03/31 C06491 273
C06 4912 73
SECRETHNOFORN
(b)(3) CIAAcl
(b)(3) NatSecAct
(b)(5)
SECRETtfNOPfORN
Approved for Release: 2016/03/31 C06491 273
C06491273
Sf!CRETHNOFORN
Exhibit F
(U) Audit Team
I (b)(3) CIAAct
(b)( 1)
(b)(3) CIAAct
(b)(3) NatSecAct
Exhibit F Is CONFI9ENTIAU/N8Fe,._N
8ECRET//NOFORN
Approved for Release: 2016/03/31 C06491273
C064912 73
SECRETffNOFORN
S!CIItET//NOFORN
Approved for Release: 2016/03/31 C06491273