Management Alert: Ensuring Proper Oversight of Major Contracts to Avoid Significant Cost Overruns
The AmeriCorps Office of Inspector General (OIG) has identified concerns regarding the award, management, and oversight of a contract for AmeriCorps’ new grants management system. Specifically, this alert identifies several factors contributing to cost overruns that will likely exceed $9 million—more than double the amount of the original contract—including the choice of a firm-fixed price contract for a project with uncertain requirements, a lack of technical expert involvement in contract oversight, and the descoping of contract tasks to accommodate cost overruns.