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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle G—Other Matters

P. L. 114-

House Conference Report. 114-270

(a) Findings.—Congress finds the following:

(1) Given the size, scope, and complexity of the Department of Defense, the statutory deadline to establish and maintain auditable financial statements, starting with the fiscal year 2018 financial statement, is one of the more challenging management tasks that has ever faced the Department.

(2) As the military services have never received a clean opinion on their consolidated financial statements and only recently begun auditing portions of their financial statements, the audits of military service financial statements will also be a complex challenge for companies selected to provide audit services.

(3) The acquisition of services by the Department abides by many rules and parameters, one of which is the lowest price, technically acceptable (LPTA) evaluation method. LPTA is generally appropriate for commercial or noncomplex services or supplies where the requirement is clearly definable and the risk of unsuccessful contract performance is minimal.

(b) Sense of Congress.—It is the sense of Congress that, before using the lowest price, technically acceptable evaluation method for the procurement of audit or audit readiness services, the Secretary of Defense should establish the values and metrics for evaluating companies offering audit services, including financial management and audit expertise and experience, personnel qualifications and certifications, past performance, technology, tools, and size.

The Senate amendment contained no similar provision.

The Senate recedes with an amendment stating that before using the lowest price, technically acceptable evaluation method for the procurement of audit or audit readiness services, the Secretary of Defense should establish the values and metrics for evaluating companies offering audit services, including financial management and audit expertise and experience, personnel qualifications and certifications, past performance, technology, tools, and size.

House Report 114-201 to accompany H. R. 1735 as it was reported out of the House Armed Services Committee.

Section 864--Use of Lowest Price, Technically Acceptable Evaluation Method for Procurement of Audit or Audit Readiness Services

This section would state a series of findings related to the use of the lowest price, technically acceptable (LPTA) evaluation method for the procurement of audit or audit readiness services. It would also require the Secretary of Defense to establish values and metrics for the services being procured and review the offeror's past performance before using an LPTA evaluation method for the procurement of such services.