Summary: In the use of consultant services, the major problems which have been identified over the past 20 years have included failure to maintain adequate information on the number and cost of consulting services; failure to obtain adequate competition in awarding procurement contracts for consulting services; inconsistent, improper, or excessive rates of pay for consulting services; use of consulting services to perform work that should be performed by regular Government employees; possible duplication of consultant studies; potential conflicts of interest between consultants' advice and their outside interests; and a disproportionate number of contracts awarded at the end of the fiscal year. Congressional committees should ask agency officials testifying before Congress what assurances they have that consulting services are being effectively managed. Congress should be alert to the danger that the consulting process over time could become too rigid and regulated and/or the regulatory process will become excessively costly. Agencies with Government-wide management responsibilities and/or a high level of expertise in particular fields should advise and assist other agencies in acquiring and evaluating consulting services. GAO cannot support the Consultant Reform Act in its present form, but supports the general intent of the bill to reform consultant practices. An enormous paperwork burden would be required by the bill. It should be recognized that solutions to consultant abuse can only be achieved by improved agency management. GAO is concerned about the possible problems which might result from the sections of the bill designed to prevent conflict-of-interest and the disclosure requirements being placed on all contracts for goods and services. Agencies should pay more attention to preventing or mitigating organizational conflicts of interest. Some provisions of the bill should be first tested at selected agencies for a 2-year period, and then Congress should be advised on whether the legislation should be applied Government-wide. It is critical for agencies to assess the quality and use made of consulting services, including an appropriate justification for failing to use the results of these services. Higher level approval of contractor evaluations than provided by the legislation should be required to assure evaluation objectivity and quality.
