U.S. National Science Foundation FY 2023 Service Contract Inventory Analysis Report

This U.S. National Science Foundation report responds to the request by the Office of Management and Budget's Office of Federal Procurement Policy (OFPP) to analyze NSF's Fiscal Year 2023 inventory of service contracts to determine if the mix of federal employees and contractors is effective or if rebalancing may be required. It includes the following information:
 

1. The special interest functions studied by the NSF, the dollars obligated to those specific product and service codes (PSCs) in FY 2023, and the rationale for focusing on the identified functions.
2. The methodology used by NSF to support its analysis.
3. NSF findings, including a brief discussion of the extent to which the desired outcomes described in Section 743(e)(2) are being met. Where workforce issues are identified, the estimated number of contractor personnel and/or labor resources involved.
4. Actions taken or planned by NSF to address any identified weaknesses or challenges. In addition, a description of follow-up steps on actions in previous inventories that were identified as pending or planned.
5. The analysis planned for FY 2024.

In accordance with NSF's Service Contract Inventory analysis report dated January 23, 2024, which included NSF's Planned FY 2023 analysis, NSF analyzed the functions under PSC R431 (Support – Professional: Human Resources) and R710 (Support – Management: Financial). NSF obligations in FY 2023 under PSC R431 (Support – Professional: Human Resources) totaled $33,638,881.78. NSF obligations in FY 2023 under PSC R710 totaled $24,493,859.84. NSF chose PSC R699 (Support - Administrative: Other Services) and R426 (Support - Professional: Communications) because each was listed in the 2023 report for PSC codes that will be analyzed in FY 2024.

In NSF's FY 2023 analysis, five (5) contracts totaling $12,899,619.40 were reviewed, covering approximately 40% of the total obligations under PSC R431 in FY 2023. These contracts were chosen for review based on (1) their dollar value and (2) the fact that they involved ongoing support as opposed to a one-time service need.

The primary methodologies used to support the analysis of the chosen contracts consisted of interviews with the contracting officer’s representatives and contracting officers of the selected contracts and a review of the contracts.

1. NSF has no personal services contract obligations.
2. A review of the selected contracts under PSC R431 and PSC R710 indicated that they:
   1. Were not contracts that were closely associated with inherently governmental functions.
   2. Were not using contractor employees to perform inherently governmental functions.
   3. Have specific safeguards and monitoring systems in place to ensure that work being performed by contractors has not changed or expanded during performance to become an inherently governmental function.
   4. Are not using contractor employees to perform critical functions in such a way that could affect the ability of the agency to maintain control of its mission and operation.
   5. Have sufficient agency resources to manage and oversee contracts effectively.
3. No workforce issues were identified because of this review.

Based on the preceding analysis, there were no actions taken or planned concerning the contracts under PSC R431 and PSC R710. None of the contracts reviewed are for personal services, and none were found to be inherently governmental. The mix of federal employees and contractors were effectively balanced for the contracts reviewed.

There are no remaining follow-up steps on actions from previous inventory analyses that were identified as pending or planned, as all issues have been resolved and explained in previous inventory reports.

The senior agency official who is (1) accountable for the development of agency policies, procedures and training associated with OFPP Policy Letter 11-01, and (2) responsible for ensuring appropriate internal management attention is given to the development and analysis of service contract inventories is Mr. Patrick K. Breen, NSF's Senior Procurement Executive.

This portion of the report responds to the Office of Management and Budget's Office of Federal Procurement Policy (OFPP) request to submit a planned analysis identifying which special interest functions in its FY 2024 service contract inventory will be evaluated. This submission provides the list of PSCs, dollars obligated for those PSCs in FY 2023, and a brief description of the rationale for selection.

NSF plans to analyze the functions under PSC R699 (Support – Administrative: Other Services) and R426 (Support – Professional: Communications). R431 (Support – Professional: Human Resources) totaled $33,638,881.78. R710 (Support – Management: Financial) totaled $24,493,859.84. NSF has chosen PSC codes R699 and R426 because they are one of the largest PSCs in terms of percentage of obligations in FY 2023 that (1) are not under a special interest function at NSF, (2) have contracts being performed and (3) have not been previously the subject of a focused review by NSF.