On February 28, the GAO released its second annual report in response to the January 2011 GPRA Modernization Act (an update of the Government Performance and Results Act of 1993), which requires “OMB to coordinate with agencies to establish outcome-oriented goals covering a limited number of crosscutting policy areas as well as goals to improve management across the federal government, and to develop a government-wide performance plan for making progress toward achieving those goals.”

A final FAR revision has been issued to ensure contracting officers are aware of restrictions on the use of time-and-materials and labor-hour contracts for commercial services.

The rule implements Government Accountability Office recommendations for (1) ensuring that time-and-material and labor-hour contracts are used to acquire commercial services only when no other contract type is suitable and (2) instilling discipline in the determination of contract type with a view toward managing the risk to the government.

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A GAO reports that DOD will close relatively few of its contingency contracts within required time frames due to poor contract administration and other problems. DOD does not know how many Iraq contracts are eligible for closeout; however, data indicate at least 58,000 contracts were awarded there between fiscal years 2003 through 2010. Another 42,000 Afghanistan contracts also need to be closed.