EDITORIAL: Contractor Performance Ratings Should Not Be Kept Hidden

More than 90 percent of the Department of Energy’s $26 billion budget is contracted out to a host of firms, large and small. DOE has been working hard over the past several years to improve how it reports, records and tracks contractor performance—a laudable goal, considering how much money is on the line. But there’s just one problem: the system that DOE, DoD and much of the federal government is using—the Contractor Performance Assessment Reporting (CPAR) system—can only be accessed by a handful of federal staff in each agency.

The General Services Administration, which maintains the CPAR system, says CPAR scores and information are not releasable because it is “privileged source selection information” that is used to “support ongoing source selections and contains sensitive data concerning a contractor and its performance. In this regard, CPAR has the unique characteristic of always being pre-decisional in nature.”

The justification for keeping the information secret—that the ratings are used in evaluations for future contracts and are therefore procurement sensitive—is weak and shortsighted. The taxpayers, Congressional staff, investors in publicly traded companies, and anyone else who is interested should be able to access performance ratings for government contractors.

This is virtually the same argument that the National Nuclear Security Administration and the Department of Energy were using in recent years as a justification for not releasing the Performance Evaluation Reports and fee determinations for its contractors. What happened? The agency was forced to reverse course, changing its policies to allow for the timely release of such information in the face of mounting public pressure that culminated in language in the FY 2013 Defense Authorization Act directing that the information be made available to the public.

So why is the CPAR information needed in addition to Department’s own fee determinations? Because DOE has made it clear that the fee determinations should not be viewed as absolute indicators of performance. As DOE spokesman Geoff Tyree told WC Monitor last year in reference to a question on the fee determination for Hanford contractor CH2M Hill Plateau Remediation Company, “Our role in the Department is to validate whether or not work is completed that the contractor has reported as completed, and if it has been completed, then the Department pays the contractor fee. It’s an objective determination. It’s not a subjective determination. It’s not meant to be a performance report on the contractor. The fee determination for this contractor is not meant to be a report card. It is an assessment of the work completed, a validation of whether or not the work has been completed, and if so, a determination of fee.”

As Department of Energy Office of Environmental Management Deputy Assistant Secretary for Acquisition and Project Management Jack Surash explained in a 2012 interview with WC Monitor: CPAR ratings are “the official record from us documenting performance of our contractors.”

Fair enough. But if fee determinations aren’t a clear indicator of performance and CPAR ratings are, then that information should not be kept secret. It’s not a stretch of logic that the people who are funding this work—the taxpayer—should be able to see for themselves whether fee determinations match CPAR ratings and assess for themselves how well the government is doing as stewards of the billions of dollars being spent on these important missions.

Last year’s contractor performance is not “predecisional” and the evaluations shouldn’t be either.  The work is too important for the public to be kept in the dark.

Martin Schneider
CEO, ExchangeMonitor Publications
10/17/2014

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Hegseth pushes for Defense reconciliation with at least $350B regardless’ of midterms outcome

Defense Secretary Pete Hegseth said last week the Trump administration plans to continue its push for at least $350 billion, “potentially more,” in defense funds via the reconciliation process “regardless of what happens in the midterms.” 

Hegseth’s doubling down on the push for a $1.5 trillion fiscal 2027 defense topline, to include the $350 billion sought through reconciliation, comes amid the department’s move to establish a new four-star Autonomous Warfare Command. He noted the mandatory spending request, or government funding channeled through any avenue other than annual appropriations, includes more than $50 billion for unmanned systems. 

“We’re lockstep on that with the White House. We’ll ensure, regardless of what happens in the midterms, we’re running fast immediately with the [congressional] committees to ensure that that reconciliation bill,” Hegseth said during a panel discussion at the Association of the U.S. Army’s annual conference in Washington D.C., “at a minimum of $350 [billion for defense], potentially more, ultimately fills up what this department needs in order for the president to ensure that we reestablish deterrence and rebuild the military around the world.”

“It’s not hyperbolic to state whether or not we rebuild our military to meet the threats of the future will depend on funding the president’s vision for $1.5 trillion,” Hegseth added. “And our goal, come hell or high water, and we’re working shoulder to shoulder with the [Joint Chiefs] chairman and the joint staff to get it, is to make sure we hit that number on behalf of the president and the country.”

While the government is currently operating under stopgap funding legislation with Congress having yet to pass final fiscal ‘27 appropriations bills or a negotiated reconciliation bill, Hegseth said Pentagon leaders’ “number one priority” is ensuring the department secures the full $1.5 trillion request. 

“Especially when you look at the deferred maintenance and the [continuing resolutions] that the services have had to endure for years and years and the chronic underfunding that’s existed,” Hegseth said. “Add that to the bureaucracy which adds more to the personnel costs and exquisite systems which crowds out [operations and maintenance funding] and certainly doesn’t leave any opening for any new innovations or new investments or new entrants.”

Prospects for passing another GOP-led reconciliation bill remain tenuous, with many lawmakers having yet to back the large defense spending request, to include lead Republican appropriations pushing back against the use of mandatory rather than discretionary funding for several top Pentagon priorities, and with Congress potentially facing a change in majority control in the next Congress following the upcoming midterms.

“The president recognizes all of this and said, ‘Hey, we would love to do it through the regular budget process but if we cannot then we’ll do it through reconciliation.’ And we will ensure, whether it’s $350 [billion] as a minimum [in] a reconciliation bill or more, that we meet the president’s expectation,” Hegseth said on Wednesday. 

Exchange Monitor affiliate Defense Daily first published a version of this story.

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