Summary: Reliable information is critical to informed decision making and to oversight of the procurement system. The Federal Procurement Data System (FPDS) has been the federal government's central database of information on federal procurement actions since 1978. Congress and executive branch agencies rely on FPDS to assess the impact that governmentwide acquisition policies and processes are having on the system generally, as well as with respect to specific geographical areas, markets, and socio-economic goals. Yet despite the importance of the data, we continue to find that FPDS data are inaccurate and incomplete. Although we have not fully assessed the extent of reporting errors, we have found sufficient problems to warrant concern about the current reliability of FPDS information.
As a result of numerous errors in data elements of FPDS, we could not determine the extent to which agencies had implemented regulations effectively, nor could we assess the impact of acquisition policies governmentwide. Our concerns about the reliability of FPDS data are not new. In 1980, we reported that FPDS failed to alert users that the system contained known errors. In 1994, we reported that the Federal Procurement Data Center (FPDC), which manages FPDS, did not have standards detailing the appropriate levels of accuracy and completeness of FPDS data. Our work and that of agency inspectors general indicates that many of the errors in FPDS are due to data entry mistakes by agency contracting personnel. In some cases, those processing the data did not have a complete understanding of the information requirements. In other cases, there was inadequate verification of the information entered into agency feeder systems, which, in turn, was transferred into FPDS. Agency officials cited a lack of training, high personnel turnover, the complexity of the agency systems, and frequent changes to FPDS data entry requirements as reasons for the errors. FPDSNext Generation (FPDS-NG) became operational effective October 1, 2003. As we understand the design of the system, FPDS-NG should, if implemented effectively, eliminate many of the sources of the errors in the current FPDS. At the heart of the new system are data entry methods that rely less on manual inputs and more on electronic "machine-to-machine" approaches. The system provides for immediate data verification to detect errors. If errors are detected, agency procurement officials will have the opportunity to correct them immediately while the information is still readily available. Information in FPDS-NG can only be as reliable as the information agencies enter through their own systems. In the long term, data reliability should improve as agencies fund and implement electronic contract writing systems. But not all agencies have done so. In the short term, as the transition to FPDS-NG occurs, agencies that do not have contract writing systems capable of interfacing directly with FPDS-NG need to review their procurement data feeder systems and take steps to improve the reliability of the information contained in those systems.
